Document and Entity Information
Document and Entity Information | 12 Months Ended |
Jan. 02, 2022shares | |
Document Information [Line Items] | |
Document Type | 40-F |
Document Registration Statement | false |
Document Annual Report | true |
Entity File Number | 01-14830 |
Document Period End Date | Jan. 2, 2022 |
Entity Registrant Name | GILDAN ACTIVEWEAR INC. |
Entity Address, Address Line One | 600 de Maisonneuve Boulevard West |
Entity Address, City or Town | Montreal |
Entity Address, State or Province | QC |
Entity Address, Postal Zip Code | H3A 3J2 |
City Area Code | 514 |
Local Phone Number | 735-2023 |
Entity Central Index Key | 0001061894 |
Entity Current Reporting Status | Yes |
Amendment Flag | false |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Entity Common Stock, Shares Outstanding | 192,267,273 |
Entity Emerging Growth Company | false |
Entity Interactive Data Current | Yes |
Entity Incorporation, State or Country Code | Z4 |
Annual Information Form | true |
Audited Annual Financial Statements | true |
Current Fiscal Year End Date | --01-02 |
Common Shares | |
Document Information [Line Items] | |
Title of 12(b) Security | Common Shares |
Trading Symbol | GIL |
Security Exchange Name | NYSE |
Rights to Purchase Common Shares | |
Document Information [Line Items] | |
Title of 12(b) Security | Rights to Purchase Common Shares |
Trading Symbol | GIL |
Security Exchange Name | NYSE |
Business Contact | |
Document Information [Line Items] | |
Entity Address, Address Line One | 1980 Clements Ferry Road |
Entity Address, City or Town | Charleston |
Entity Address, State or Province | SC |
Entity Address, Postal Zip Code | 29492 |
City Area Code | 843 |
Local Phone Number | 606-3600 |
Audit Information
Audit Information | 12 Months Ended |
Jan. 02, 2022 | |
Audit Information [Abstract] | |
Auditor Name | KPMG LLP |
Auditor Location | Montréal, Canada |
Auditor Firm ID | 85 |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION $ in Thousands, € in Millions, ৳ in Millions, ¥ in Millions, ¥ in Millions, £ in Millions, $ in Millions, $ in Millions, $ in Millions, $ in Millions | Jan. 02, 2022USD ($) | Jan. 03, 2021USD ($) |
Current assets: | ||
Cash and cash equivalents (note 6) | $ 179,246 | $ 505,264 |
Trade accounts receivable (note 7) | 329,967 | 196,480 |
Income taxes receivable | 0 | 4,632 |
Inventories (note 8) | 774,358 | 727,992 |
Prepaid expenses, deposits and other current assets | 163,662 | 110,105 |
Total current assets | 1,447,233 | 1,544,473 |
Non-current assets: | ||
Property, plant and equipment (note 9) | 985,073 | 896,800 |
Right-of-use assets | 92,447 | 59,445 |
Intangible assets (note 11) | 306,630 | 289,901 |
Goodwill | 283,815 | 206,636 |
Deferred tax assets | 17,726 | 17,689 |
Other non-current assets | 3,758 | 6,004 |
Total non-current assets | 1,689,449 | 1,476,475 |
Total assets | 3,136,682 | 3,020,948 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 440,401 | 343,722 |
Income taxes payable | 7,912 | 0 |
Current lease liabilities | 15,290 | 15,884 |
Total current liabilities | 463,603 | 359,606 |
Non-current liabilities: | ||
Long-term debt (note 12) | 600,000 | 1,000,000 |
Non-current lease liabilities | 93,812 | 66,580 |
Other non-current liabilities (note 13) | 59,862 | 35,865 |
Total non-current liabilities | 753,674 | 1,102,445 |
Total liabilities | 1,217,277 | 1,462,051 |
Equity (note 14): | ||
Share capital | 191,732 | 183,938 |
Contributed surplus | 58,128 | 24,936 |
Retained earnings | 1,604,736 | 1,359,061 |
Accumulated other comprehensive income (note 15) | 64,809 | (9,038) |
Total equity attributable to shareholders of the Company | 1,919,405 | 1,558,897 |
Total liabilities and equity | $ 3,136,682 | $ 3,020,948 |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME $ in Thousands, € in Millions, ৳ in Millions, ¥ in Millions, ¥ in Millions, £ in Millions, $ in Millions, $ in Millions, $ in Millions, $ in Millions | 12 Months Ended | |
Jan. 02, 2022USD ($)$ / shares | Jan. 03, 2021USD ($)$ / shares | |
Profit or loss [abstract] | ||
Net sales (note 27) | $ 2,922,570 | $ 1,981,276 |
Cost of sales (note 17(c)) | 1,982,361 | 1,732,217 |
Gross profit | 940,209 | 249,059 |
Selling, general and administrative expenses (note 17(a)) | 314,171 | 272,306 |
Reversal of impairment (Impairment) of trade accounts receivable | (2,617) | 15,453 |
Restructuring and acquisition-related costs (note 18) | 8,225 | 48,154 |
(Impairment reversal, net of write-downs) | (31,459) | 93,989 |
Operating income (loss) | 651,889 | (180,843) |
Financial expenses, net (note 15(c)) | 27,331 | 48,530 |
Earnings (loss) before income taxes | 624,558 | (229,373) |
Income tax expense (recovery) (note 19) | 17,375 | (4,091) |
Net earnings (loss) | 607,183 | (225,282) |
Other comprehensive income (loss), net of related income taxes: | ||
Cash flow hedges (note 15(d)) | 73,847 | (8,503) |
Actuarial (loss) gain on employee benefit obligations (note 13(a)) | (21,678) | 12,142 |
Other comprehensive income | 52,169 | 3,639 |
Comprehensive income (loss) | $ 659,352 | $ (221,643) |
Earnings (loss) per share (note 20): | ||
Basic (in dollars per share) | $ / shares | $ 3.08 | $ (1.14) |
Diluted (in dollars per share) | $ / shares | $ 3.07 | $ (1.14) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Share capital | Contributed surplus | Accumulated other comprehensive income (loss) | Retained earnings |
Balance (in shares) at Dec. 29, 2019 | 199,012,000 | ||||
Balance at Dec. 29, 2019 | $ 1,834,494 | $ 174,218 | $ 32,769 | $ (535) | $ 1,628,042 |
Changes in equity [abstract] | |||||
Share-based compensation | 1,954 | 1,954 | |||
Shares issued under employee share purchase plan (in shares) | 73,000 | ||||
Shares issued under employee share purchase plan | 1,381 | $ 1,381 | |||
Shares issued pursuant to exercise of stock options (in shares) | 87,000 | ||||
Shares issued pursuant to exercise of stock options | 1,609 | $ 2,504 | (895) | ||
Shares issued or distributed pursuant to vesting of restricted share units (in shares) | 194,000 | ||||
Shares issued or distributed pursuant to vesting of restricted share units | $ (2,571) | $ 6,657 | (9,228) | ||
Shares repurchased for cancellation (note 13(d)) (in shares) | (843,038) | (843,000) | |||
Shares repurchased for cancellation (note 14(d)) | $ (23,216) | $ (744) | (22,472) | ||
Share repurchases for settlement of non-Treasury RSUs (note 13(e)) (in shares) | (116,000) | ||||
Share repurchases for settlement of non-Treasury RSUs (note 14(e)) | (2,558) | $ (78) | (2,480) | ||
Dividends declared | (30,553) | 336 | (30,889) | ||
Transactions with shareholders of the Company recognized directly in equity (in shares) | (605,000) | ||||
Transactions with shareholders of the Company recognized directly in equity | (53,954) | $ 9,720 | (7,833) | (55,841) | |
Cash flow hedges (note 15(d)) | (8,503) | (8,503) | |||
Actuarial (loss) gain on employee benefit obligations (note 13(a)) | 12,142 | 12,142 | |||
Net earnings | (225,282) | (225,282) | |||
Comprehensive income (loss) | $ (221,643) | (8,503) | (213,140) | ||
Balance (in shares) at Jan. 03, 2021 | 198,407,222 | 198,407,000 | |||
Balance at Jan. 03, 2021 | $ 1,558,897 | $ 183,938 | 24,936 | (9,038) | 1,359,061 |
Changes in equity [abstract] | |||||
Share-based compensation | 37,526 | 37,526 | |||
Shares issued under employee share purchase plan (in shares) | 41,000 | ||||
Shares issued under employee share purchase plan | 1,406 | $ 1,406 | |||
Shares issued pursuant to exercise of stock options (in shares) | 295,000 | ||||
Shares issued pursuant to exercise of stock options | 8,154 | $ 9,907 | (1,753) | ||
Shares issued or distributed pursuant to vesting of restricted share units (in shares) | 132,000 | ||||
Shares issued or distributed pursuant to vesting of restricted share units | $ (2,837) | $ 2,762 | (5,599) | ||
Shares repurchased for cancellation (note 13(d)) (in shares) | (6,475,375) | (6,475,000) | |||
Shares repurchased for cancellation (note 14(d)) | $ (250,439) | $ (6,182) | (244,257) | ||
Share repurchases for settlement of non-Treasury RSUs (note 13(e)) (in shares) | (133,000) | ||||
Share repurchases for settlement of non-Treasury RSUs (note 14(e)) | (4,267) | $ (99) | (4,168) | ||
Deferred compensation to be settled in non-Treasury RSUs | 2,075 | 2,075 | |||
Dividends declared | (90,462) | 943 | (91,405) | ||
Transactions with shareholders of the Company recognized directly in equity (in shares) | (6,140,000) | ||||
Transactions with shareholders of the Company recognized directly in equity | (298,844) | $ 7,794 | 33,192 | (339,830) | |
Cash flow hedges (note 15(d)) | 73,847 | 73,847 | |||
Actuarial (loss) gain on employee benefit obligations (note 13(a)) | (21,678) | (21,678) | |||
Net earnings | 607,183 | 607,183 | |||
Comprehensive income (loss) | $ 659,352 | 73,847 | 585,505 | ||
Balance (in shares) at Jan. 02, 2022 | 192,267,273 | 192,267,000 | |||
Balance at Jan. 02, 2022 | $ 1,919,405 | $ 191,732 | $ 58,128 | $ 64,809 | $ 1,604,736 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Thousands, € in Millions, ৳ in Millions, ¥ in Millions, ¥ in Millions, £ in Millions, $ in Millions, $ in Millions, $ in Millions, $ in Millions | 12 Months Ended | |
Jan. 02, 2022USD ($) | Jan. 03, 2021USD ($) | |
Cash flows from (used in) operating activities: | ||
Net earnings | $ 607,183 | $ (225,282) |
Adjustments for: | ||
Depreciation and amortization (note 21) | 135,402 | 147,190 |
Non-cash restructuring charges related to property, plant and equipment, right-of-use assets, and computer software (note 18) | 3,136 | 23,933 |
(Impairment reversal, net of write-downs) | (31,459) | 93,989 |
Insurance recovery gain, net of loss on disposal of property, plant and equipment(1) | (43,660) | (27,091) |
Share-based compensation | 37,659 | 2,090 |
Other (note 22) | 5,988 | 4,691 |
Other adjustments to reconcile profit (loss) | (96,739) | 395,510 |
Cash flows from operating activities | 617,510 | 415,030 |
Cash flows from (used in) investing activities: | ||
Purchase of property, plant and equipment | (127,457) | (50,670) |
Purchase of intangible assets | (2,766) | (7,670) |
Business acquisitions (note 5) | (163,968) | 0 |
Proceeds from insurance related to property, plant and equipment (PP&E) and other disposals of PP&E | 106,358 | 830 |
Cash flows used in investing activities | (187,833) | (57,510) |
Cash flows from (used in) financing activities: | ||
Decrease in amounts drawn under revolving long-term bank credit facility | 0 | (245,000) |
(Payment of) Proceeds from term loan | (400,000) | 400,000 |
Payment of lease obligations (note 10(b)) | (21,474) | (15,418) |
Dividends paid | (90,462) | (30,553) |
Proceeds from the issuance of shares | 9,427 | 2,854 |
Repurchase and cancellation of shares (note 14(d)) | (245,140) | (23,216) |
Share repurchases for settlement of non-Treasury RSUs (note 14(e)) | (4,267) | (2,558) |
Withholding taxes paid pursuant to the settlement of non-Treasury RSUs | (2,837) | (2,571) |
Cash flows (used in) from financing activities | (754,753) | 83,538 |
Effect of exchange rate changes on cash and cash equivalents denominated in foreign currencies | (942) | 80 |
Net (decrease) increase in cash and cash equivalents during the fiscal year | (326,018) | 441,138 |
Cash and cash equivalents, beginning of fiscal year | 505,264 | 64,126 |
Cash and cash equivalents, end of fiscal year | 179,246 | 505,264 |
Cash paid (included in cash flows from operating activities): | ||
Interest | 22,201 | 35,648 |
Income taxes, net of refunds | $ 5,744 | $ 9,318 |
FINANCIAL RISK MANAGEMENT
FINANCIAL RISK MANAGEMENT | 12 Months Ended |
Jan. 02, 2022 | |
Trade and other current receivables [abstract] | |
FINANCIAL RISK MANAGEMENT | TRADE ACCOUNTS RECEIVABLE: January 2, 2022 January 3, 2021 Trade accounts receivable $ 343,671 $ 215,474 Allowance for expected credit losses (13,704) (18,994) $ 329,967 $ 196,480 As at January 2, 2022, trade accounts receivables being serviced under a receivables purchase agreement amounted to $144.9 million (January 3, 2021 - $145.2 million). The difference between the carrying amount of the receivables sold under the agreement and the cash received at the time of transfer was $1.6 million for fiscal 2021 (2020 - $2.0 million) and was recorded in bank and other financial charges. Refer to note 26 for additional information related to the receivables purchase agreement. The movement in the allowance for expected credit losses in respect of trade receivables was as follows: 2021 2020 Balance, beginning of fiscal year $ (18,994) $ (7,184) Reversal of impairment (Impairment) of trade accounts receivable 2,617 (15,453) Write-off of trade accounts receivable 2,673 3,643 Balance, end of fiscal year $ (13,704) $ (18,994) During fiscal 2021, the Company adjusted its provision matrix to decrease expected credit loss rates as the economic environment improved, resulting in a reversal of impairment of trade accounts receivable for the year ended January 2, 2022. The impairment of trade accounts receivable for fiscal 2020 was mainly related to an increase in the estimate of expected credit loss rates attributable to the heightened credit risk caused by the economic conditions related to the COVID-19 pandemic. Due to the nature of the activities that the Company carries out and as a result of holding financial instruments, the Company is exposed to risks arising from financial instruments, including credit risk, liquidity risk, foreign currency risk, interest rate risk, commodity price risk, as well as risks arising from changes in the price of its common shares under the Company's share-based compensation plans. The Company may periodically use derivative financial instruments to manage risks related to fluctuations in foreign exchange rates, commodity prices, interest rates, and the market price of its own common shares. The use of derivative financial instruments is governed by the Company’s Financial Risk Management Policy approved by the Board of Directors and is administered by the Financial Risk Management Committee. The Financial Risk Management Policy of the Company stipulates that derivative financial instruments should only be used to hedge or mitigate an existing financial exposure that constitutes a commercial risk to the Company, and if the derivatives are determined to be the most efficient and cost effective means of mitigating the Company’s exposure to liquidity risk, foreign currency risk, and interest rate risk, as well as risks arising from commodity prices. Hedging limits, as well as counterparty credit rating and exposure limitations are defined in the Company’s Financial Risk Management Policy, depending on the type of risk that is being mitigated. Derivative financial instruments are not used for speculative purposes. At the inception of each designated hedging derivative contract, the Company formally designates and document the hedging relationship and its risk management objective and strategy for undertaking the hedge. Documentation includes identification of the hedging instrument, the hedged item, the nature of the risk being hedged, and how the Company will assess whether the hedging relationship meets the hedge effectiveness requirements, including its analysis of the sources of hedge ineffectiveness and how they determine the hedge ratio. Credit risk Credit risk is the risk of an unexpected loss if a customer or counterparty to a financial instrument fails to meet its contractual obligations and arises primarily from the Company’s trade accounts receivable. The Company may also have credit risk relating to cash and cash equivalents and derivative financial instruments, which it manages by dealing only with highly rated North American and European financial institutions. The Company's credit risk may also be exacerbated during periods of weak general economic and financial conditions. The Company's trade accounts receivable and credit exposure fluctuate throughout the year based on the seasonality of its sales and other factors. The Company’s average trade accounts receivable and credit exposure during an interim reporting period may be significantly higher than the balance at the end of that reporting period. In addition, due to the historical seasonality of the Company’s net sales, the Company’s trade accounts receivable balance as at the end of a calendar year will typically be lower than at the end of an interim reporting period. Under the terms of a receivables purchase agreement, the Company may continuously sell trade accounts receivables of certain designated customers to a third-party financial institution in exchange for a cash payment equal to the face value of the sold trade accounts receivables, less an applicable discount. The Company retains servicing responsibilities, including collection, for these trade accounts receivables but does not retain any credit risk with respect to any trade accounts receivables that have been sold. All trade accounts receivables sold under the receivables purchase agreement are removed from the consolidated statements of financial position, as the sale of the trade accounts receivables qualify for de-recognition. The receivables purchase agreement, which allows for the sale of a maximum of $225 million of accounts receivables at any one time, expires on June 20, 2022, subject to annual extensions. The Company’s credit risk for trade accounts receivables is concentrated as the majority of its sales are to a relatively small group of wholesale distributors and mass-market and other retailers. As at January 2, 2022, the Company’s ten largest trade debtors accounted for 78% of trade accounts receivable (2020 - 76%); the largest of which accounted for 24% (2020 - 23%). The Company’s main trade debtors are located in the U.S. The remaining trade accounts receivable balances are dispersed among a larger number of debtors across many geographic areas including the U.S., Canada, Europe, Asia-Pacific, and Latin America. 26. FINANCIAL RISK MANAGEMENT (continued): Credit risk (continued) Most of the Company’s customers have been transacting with the Company or its subsidiaries for several years. Certain wholesale distributors are highly leveraged with significant reliance on trade credit terms provided by a few major vendors, including the Company, and third-party debt financing, including bank debt secured with trade accounts receivable and inventory pledged as collateral. The financial leverage of these customers may limit or prevent their ability to refinance existing indebtedness or to obtain additional financing and could affect their ability to comply with restrictive debt covenants and meet other obligations. The profile and credit quality of the Company’s mass-market and other retailer customers vary significantly. The Company’s extension of credit to customers involves considerable judgment and is based on an evaluation of each customer’s financial condition and payment history. The Company has established various internal controls designed to mitigate credit risk, including a dedicated credit function which recommends customer credit limits and payment terms that are reviewed and approved on a quarterly basis by senior management at the Company’s primary sales offices in Christ Church, Barbados. Where available, the Company’s credit departments periodically review external ratings and customer financial statements and, in some cases, obtain bank and other references. New customers are subject to a specific validation and pre-approval process. From time to time, where circumstances warrant, the Company will temporarily transact with customers on a prepayment basis. While the Company’s credit controls and processes have been effective in mitigating credit risk, these controls cannot eliminate credit risk in its entirety and there can be no assurance that these controls will continue to be effective or that the Company’s historical credit loss experience will continue. The Company’s exposure to credit risk for trade accounts receivable by geographic area was as follows as at: January 2, January 3, Trade accounts receivable by geographic area: United States $ 296,100 $ 167,080 Canada 16,954 11,192 Europe and other 16,913 18,208 Total trade accounts receivable $ 329,967 $ 196,480 The aging of trade accounts receivable balances was as follows as at: January 2, January 3, Not past due $ 318,528 $ 173,354 Past due 0-30 days 9,352 16,572 Past due 31-60 days 3,667 4,360 Past due 61-120 days 2,903 5,912 Past due over 121 days 9,221 15,276 Trade accounts receivable 343,671 215,474 Less allowance for expected credit losses (13,704) (18,994) Total trade accounts receivable $ 329,967 $ 196,480 26. FINANCIAL RISK MANAGEMENT (continued): Liquidity risk Liquidity risk is defined as the potential risk that the Company will not be able to meet its financial obligations as they fall due. The Company manages its liquidity risk through the management of its capital structure and financial leverage, as outlined in note 25 to these consolidated financial statements. In addition, the Company manages this risk by continuously monitoring actual and projected cash flows, taking into account the seasonality of its sales and cash receipts and the expected timing of capital expenditures. In managing its liquidity risk, the Company relies on cash resources, debt, and cash flows generated from operations to satisfy its financing requirements. The Company may also require access to capital markets to support its operations as well as to achieve its strategic plans. Any impediments to the Company's ability to continue to meet the covenants and conditions contained in its long-term debt agreements as well as the Company's ability to access capital markets, the failure of a financial institution participating in its revolving long-term bank credit facilities, or an adverse perception in capital markets of the Company's financial condition or prospects could have a material impact on its future financing capability. In addition, the Company's access to capital markets and to financing at reasonable terms and interest rates could be influenced by the economic and credit market environment, including a potential prolonged economic downturn and recessions resulting from the unprecedented nature of the COVID-19 pandemic. The following tables present a maturity analysis based on contractual maturity date of the Company's financial liabilities. All commitments have been reflected in the consolidated statements of financial position except for purchase obligations, as well as minimum royalty payments, which are included in the table of contractual obligations below. The amounts are the contractual undiscounted cash flows. Carrying Contractual Less than Between 1 Between 4 More than (in $ millions) amount cash flows 1 year and 3 years and 5 years 5 years Accounts payable and accrued liabilities 440.4 440.4 440.4 — — — Long-term debt 600.0 600.0 — 150.0 450.0 — Purchase and other obligations — 392.9 320.8 54.5 14.9 2.7 Lease obligations 109.1 133.2 21.2 28.2 22.4 61.4 Total contractual obligations 1,149.5 1,566.5 782.4 232.7 487.3 64.1 As disclosed in note 24, the Company has granted financial guarantees, irrevocable standby letters of credit, and surety bonds to third parties to indemnify them in the event the Company and some of its subsidiaries do not perform their contractual obligations. As at January 2, 2022, the maximum potential liability under these guarantees was $121.3 million, of which $10.5 million was for surety bonds and $110.8 million was for financial guarantees and standby letters of credit. 26. FINANCIAL RISK MANAGEMENT (continued): Foreign currency risk The majority of the Company’s cash flows and financial assets and liabilities are denominated in U.S. dollars, which is the Company’s functional and reporting currency. Foreign currency risk is mainly limited to the portion of the Company’s business transactions denominated in currencies other than U.S. dollars, primarily for sales and distribution expenses for customers outside the U.S., certain equipment purchases, and head office expenses in Canada. The Company’s exposure relates primarily to changes in the U.S. dollar versus the Canadian dollar, the Pound sterling, the Euro, the Australian dollar, the Mexican peso, and the Chinese yuan. For the Company’s foreign currency transactions, fluctuations in the respective exchange rates relative to the U.S. dollar will create volatility in the Company’s cash flows, in the reported amounts for sales and SG&A expenses in its consolidated statement of earnings and comprehensive income, and for property, plant and equipment in its consolidated statement of financial position, both on a period-to-period basis and compared with operating budgets and forecasts. Additional earnings variability arises from the translation of monetary assets and liabilities denominated in currencies other than the U.S. dollar at the rates of exchange at each reporting dates, the impact of which is reported as a foreign exchange gain or loss and included in financial expenses (net) in the statement of earnings and comprehensive income. The Company also incurs a portion of its manufacturing costs in foreign currencies, primarily payroll costs paid in Honduran Lempiras, Dominican Pesos, Mexican Pesos, Nicaraguan Cordobas, as well as in Bangladeshi Taka. Significant changes in these currencies relative to the U.S. dollar exchange rate in the future, could have a significant impact on the Company's operating results. The Company’s objective in managing its foreign currency risk is to minimize its net exposures to foreign currency cash flows, by transacting with third parties in U.S. dollars to the maximum extent possible and practical and holding cash and cash equivalents and incurring borrowings in U.S. dollars. The Company monitors and forecasts the values of net foreign currency cash flows and, from time to time will authorize the use of derivative financial instruments, such as forward foreign exchange contracts with maturities of up to three years, to economically hedge a portion of foreign currency cash flows. The Company had forward foreign exchange contracts outstanding as at January 2, 2022, consisting primarily of contracts to sell and buy Canadian dollars, sell Euros, sell Pounds sterling, sell Australian dollars, and sell Mexican pesos in exchange for U.S. dollars. The outstanding contracts and other foreign exchange contracts that were settled during fiscal 2021 were designated as cash flow hedges and qualified for hedge accounting. The underlying risk of the foreign exchange contracts is identical to the hedged risk and, accordingly, the Company has established a ratio of 1:1 for all foreign exchange hedges. The following tables provide an indication of the Company’s significant foreign currency exposures included in the consolidated statement of financial position as at January 2, 2022 arising from financial instruments: January 2, 2022 (in U.S. $ millions) CAD GBP EUR AUD MXN CNY BDT COP JPY Cash and cash equivalents 6.1 1.7 3.3 1.8 5.3 4.5 4.2 1.9 0.9 Trade accounts receivable 16.9 — 7.0 3.9 2.6 0.7 — — — Prepaid expenses, deposits and other current 0.4 0.3 2.1 — 0.1 0.4 2.4 0.7 — Accounts payable and accrued liabilities (21.0) (0.6) (3.7) (0.6) (1.0) (2.9) (6.8) — — Based on the Company’s foreign currency exposures arising from financial instruments noted above, and the impact of outstanding derivative financial instruments designated as effective hedging instruments, varying the foreign exchange rates to reflect a 5 percent strengthening of the U.S. dollar would have (decreased) increased earnings and other comprehensive income as follows, assuming that all other variables remained constant: For the year ended January 2, 2022 (in U.S. $ millions) CAD GBP EUR AUD MXN CNY BDT COP JPY Impact on earnings before income taxes (0.1) (0.1) (0.4) (0.3) (0.3) (0.1) — (0.1) — Impact on other comprehensive income before income taxes 0.3 1.7 1.6 0.3 0.3 — — — — 26. FINANCIAL RISK MANAGEMENT (continued): Foreign currency risk (continued): An assumed 5 percent weakening of the U.S. dollar during the year ended January 2, 2022 would have had an equal but opposite effect on the above currencies to the amounts shown above, assuming that all other variables remain constant. Commodity risk The Company is subject to the commodity risk of cotton prices and cotton price movements, as the majority of its products are made of 100% cotton or blends of cotton and synthetic fibers. The Company is also subject to the risk of fluctuations in the prices of crude oil and petrochemicals as they influence the cost of polyester fibers which are used in many of its products. The Company purchases cotton from third-party merchants, cotton-based yarn from third-party yarn manufacturers, and polyester fibers from third-party polyester manufacturers. The Company assumes the risk of price fluctuations for these purchases. The Company enters into contracts, up to eighteen months in advance of future delivery dates, to establish fixed prices for its cotton and cotton-based yarn purchases and polyester fibers purchases, in order to reduce the effects of fluctuations in the cost of cotton, crude oil, and petrochemicals used in the manufacture of its products. These contracts are not used for trading purposes and are not considered to be financial instruments that would need to be accounted for at fair value in the Company’s consolidated financial statements. Without taking into account the impact of fixed price contracts, a change of $0.01 per pound in the price of cotton would affect the Company’s annual raw material costs by approximately $6 million, based on current production levels. In addition, fluctuations in crude oil or petroleum prices also affect the Company's energy consumption costs and can influence transportation costs and the cost of related items used in its business, including other raw materials the Company uses to manufacture its products such as chemicals, dyestuffs, and trims. The Company generally purchases these raw materials at market prices. The Company also has the ability to enter into derivative financial instruments, including futures and option contracts, to manage its exposure to movements in commodity prices. Such contracts are accounted for at fair value in these consolidated financial statements in accordance with the accounting standards applicable to financial instruments. During fiscal 2021, the Company entered into commodity derivative contracts as described in note 15. The underlying risk of the commodity derivative contracts is identical to the hedged risk and accordingly, the Company has established a ratio of 1:1 for all commodity derivative hedges. Due to a strong correlation between commodity future contract prices and its purchased costs, the Company did not experience any significant ineffectiveness on its hedges, other than as disclosed in note 15(d). Interest rate risk The Company is subject to interest rate risk arising from its $300 million term loan, $100 million of its unsecured notes payable, and amounts drawn on its revolving long-term bank credit facilities, all of which bear interest at a variable U.S. LIBOR-based interest rate, plus a spread. The Company generally fixes the rates for LIBOR-based borrowings for periods of one to three months. The interest rates on amounts drawn on debt agreements and on any future borrowings will vary and are unpredictable. Increases in interest rates on new debt issuances may result in a material increase in financial charges. The Company has the ability to enter into derivative financial instruments that would effectively fix its cost of current and future borrowings for an extended period of time. The Company has floating-to-fixed interest rate swaps outstanding to hedge up to $250 million of its floating interest rate exposure on a designated portion of certain long-term debt agreements. The interest rate swap contracts are designated as cash flow hedges and qualify for hedge accounting. Refer to note 15 (b) for additional information. 26. FINANCIAL RISK MANAGEMENT (continued): Interest rate risk (continued): The Company has begun discussions with its lenders to amend existing debt agreements to include LIBOR fallback provisions. LIBOR is still being used as the interest rate benchmark in its existing debt agreements. In addition, the Company and its counterparties under interest rate swap agreements are expected to negotiate the substitution of reference rates in such agreements. Refer to note 15 (d) for additional information. As at January 2, 2022, the Company has $400 million of term loans and private placements with a U.S. LIBOR-based interest rate. The Company's floating rate debt has a variable rate of interest linked to LIBOR as a benchmark for establishing the rate. However, the changes to LIBOR which were effective after January 1, 2021 did not impact the cost of the Company's variable rate indebtedness, as LIBOR is still being used as the interest rate benchmark in its existing debt agreements. In July 2017, the United Kingdom’s Financial Conduct Authority (FCA), which regulates LIBOR, announced that it intends to stop persuading or compelling banks to submit rates for the calculation of LIBOR to the administrator of LIBOR after 2021. In March 2021, the FCA announced that it will cease the issuance of the EUR, CHF, JPY and GBP LIBOR for all tenors, as well as the one week and two month USD LIBOR at the end of December 31, 2021. All other USD LIBOR tenors will cease at the end of June 30, 2023. The Company is currently managing the process to transition the existing impacted agreements to an alternative rate (such as a new widely recognized benchmark rates for newly originated loans) for the calculation of interest rates under its floating rate debt. The Company may incur expenses in effecting the transition, and may be subject to disputes or litigation with lenders over the appropriateness or comparability to LIBOR of the substitute reference rates. Based on the value of interest-bearing financial instruments during the year ended January 2, 2022, an assumed 0.5 percentage point increase in interest rates during such period would have decreased earnings before income taxes by $1.2 million. An assumed 0.5 percentage point decrease in interest rates would have had an equal but opposite effect on earnings before income taxes, assuming that all other variables remain constant. |
REPORTING ENTITY
REPORTING ENTITY | 12 Months Ended |
Jan. 02, 2022 | |
General Information About Financial Statements [Abstract] | |
REPORTING ENTITY | REPORTING ENTITY: Gildan Activewear Inc. (the "Company" or "Gildan") is domiciled in Canada and is incorporated under the Canada Business Corporations Act. Its principal business activity is the manufacture and sale of activewear, hosiery and underwear. The Company's fiscal year ends on the Sunday closest to December 31 of each year. The address of the Company’s registered office is 600 de Maisonneuve Boulevard West, Suite 3300, Montreal, Quebec. These consolidated financial statements are as at and for the fiscal years ended January 2, 2022 and January 3, 2021 and include the accounts of the Company and its subsidiaries. The Company is a publicly listed entity and its shares are traded on the Toronto Stock Exchange and New York Stock Exchange under the symbol GIL. |
BASIS OF PREPARATION
BASIS OF PREPARATION | 12 Months Ended |
Jan. 02, 2022 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
BASIS OF PREPARATION | BASIS OF PREPARATION: (a) Statement of compliance: These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). These consolidated financial statements for the fiscal year ended January 2, 2022 were authorized for issuance by the Board of Directors of the Company on February 22, 2022. (b) Basis of measurement: These consolidated financial statements have been prepared on the historical cost basis except for the following items in the consolidated statements of financial position: • Derivative financial instruments which are measured at fair value; • Employee benefit obligations related to defined benefit plans which are measured at the present value of the defined benefit obligations, net of advance payments made to employees thereon; • Liabilities for cash-settled share-based payment arrangements which are measured at fair value, and equity-classified share-based payment arrangements which are measured at fair value at grant date pursuant to IFRS 2, Share-based payment; • Discontinued, damaged, and excess finished inventories which are carried at the net realizable value; • Provisions for decommissioning, site restoration costs, and onerous contracts which are measured at the present value of the expenditures expected to be required to settle the obligation; and • Identifiable assets acquired and liabilities assumed in connection with a business combination which are initially measured at fair value. These consolidated financial statements are presented in U.S. dollars, which is the Company's functional currency. 2. BASIS OF PREPARATION (continued): (c) Initial application of new or amended accounting standards: During the year ended January 2, 2022, the Company adopted the following new or amended accounting standards: Interest Rate Benchmark Reform On August 27 2020, the IASB published "Interest Rate Benchmark Reform - Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16)" to address issues relating to the modification of financial assets, financial liabilities and lease liabilities, specific hedge accounting requirements, and disclosure requirements when an existing interest rate benchmark is actually replaced. The amendment introduces a practical expedient for modifications required by the reform (modifications required as a direct consequence of the IBOR reform and made on an economically equivalent basis). These modifications are accounted for by updating the effective interest rate. All other modifications are accounted for using the current IFRS requirements. A similar practical expedient is available for lessee accounting under IFRS 16. Under the amendments, hedge accounting is not discontinued solely because of the IBOR reform. Hedging relationships (and related documentation) must be amended to reflect modifications to the hedged item, hedging instrument, and hedged risk. Amended hedging relationships should meet all qualifying criteria to apply hedge accounting, including effectiveness requirements. The amendments are effective for annual reporting periods beginning on or after January 1, 2021 and are to be applied retrospectively. The Company has begun discussions with its lenders to amend existing debt agreements to include LIBOR fallback provisions. To date, the adoption has not had an impact on the Company's consolidated financial statements as LIBOR is still being used as the interest rate benchmark in its existing debt agreements. In addition, the Company and its counterparties under interest rate swap agreements are expected to negotiate the substitution of reference rates in such agreements. It is too early to determine if any upcoming potential modifications will meet the requirements for the application of the practical expedient. During the year ended January 3, 2021, the Company adopted the following new accounting standards : Amendments to IFRS 3, Business combinations In October 2018, the IASB issued amendments to IFRS 3, Business combinations. The amendments clarify the definition of a business, with the objective of assisting entities in determining whether a transaction should be accounted for as a business combination or as an asset acquisition. The amendments are effective for business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after January 1, 2020 and apply prospectively. Given the prospective application of the amendment, its adoption did not have an impact on the Company’s consolidated financial statements. Interest Rate Benchmark Reform - Phase 1 On September 26, 2019, the IASB published "Interest Rate Benchmark Reform - Phase 1 (Amendments to IFRS 9, IAS 39 and IFRS 7)" as a first reaction to the potential effects the IBOR reform could have on financial reporting. Interbank offered rates ("IBORs") are interest reference rates, such as LIBOR, EURIBOR and TIBOR, that represent the cost of obtaining unsecured funding, in a particular combination of currency and maturity, and in a particular interbank term lending market. The amendments from Phase 1 modified specific hedge accounting requirements so that entities would apply those hedge accounting requirements assuming that the interest rate benchmark on which the hedged cash flows and cash flows from the hedging instrument are based will not be altered as a result of interest rate benchmark reform. The Company had floating rate debt with a variable rate of interest linked to U.S. LIBOR as a benchmark for establishing the rate in the amount of $400 million outstanding as at January 2, 2022, a portion of which was hedged with $250 million of floating-to-fixed interest rate swaps that are designated as cash flow hedges as described in note 15(b). The Company early adopted the Phase 1 amendments effective September 30, 2019 (first day of the fourth quarter of fiscal 2019). The amounts included in other comprehensive income in relation to floating-to-fixed interest rate swaps that are designated as cash flow hedges and that are mostly affected by the IBOR reform were not significant at the date of adoption. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jan. 02, 2022 | |
List Of Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES: The accounting policies set out below have been applied consistently to all periods presented in these consolidated financial statements, unless otherwise indicated. (a) Basis of consolidation: (i) Business combinations: Business combinations are accounted for using the acquisition method. Accordingly, the consideration transferred for the acquisition of a business is the fair value of the assets transferred and any debt and equity interests issued by the Company on the date control of the acquired company is obtained. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Contingent consideration classified as an asset or a liability that is a financial instrument is subsequently remeasured at fair value, with any resulting gain or loss recognized and included in restructuring and acquisition-related costs in the consolidated statement of earnings and comprehensive income. Acquisition-related costs, other than those associated with the issue of debt or equity securities, are expensed as incurred and are included in restructuring and acquisition-related costs in the consolidated statement of earnings and comprehensive income. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are generally measured initially at their fair values at the acquisition date. The Company recognizes any non-controlling interest in an acquired company either at fair value or at the non-controlling interest’s proportionate share of the acquired company’s net identifiable assets. The excess of the consideration transferred over the fair value of the identifiable net assets acquired is recorded as goodwill. If the total of consideration transferred and non-controlling interest recognized is less than the fair value of the net assets of the business acquired, a purchase gain is recognized immediately in the consolidated statement of earnings and comprehensive income and applied as a reduction of restructuring and acquisition-related costs. (ii) Subsidiaries: Subsidiaries are entities controlled by the Company. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. The accounting policies of subsidiaries are aligned with the policies adopted by the Company. Intragroup transactions, balances, and unrealized gains or losses on transactions between group companies are eliminated. The Company’s principal subsidiaries, their jurisdiction of incorporation, and the Company’s percentage ownership share of each are as follows: Subsidiary Jurisdiction of incorporation Ownership Gildan Activewear SRL Barbados 100 % Gildan Yarns, LLC Delaware 100 % Gildan USA Inc. Delaware 100 % Gildan Honduras Properties, S. de R.L. Honduras 100 % Frontier Yarns, Inc. North Carolina 100 % Gildan Apparel (Canada) LP Ontario 100 % Gildan Activewear (UK) Limited United Kingdom 100 % Gildan Activewear EU SRL Belgium 100 % Gildan Textiles de Sula, S. de R.L. Honduras 100 % G.A.B. Limited Bangladesh 100 % Gildan Activewear Honduras Textile Company, S. de R.L. Honduras 100 % Gildan Activewear (Eden) Inc. North Carolina 100 % Gildan Hosiery Rio Nance, S. de R.L. Honduras 100 % Gildan Mayan Textiles, S. de R.L. Honduras 100 % Gildan Charleston Inc. Delaware 100 % Gildan Activewear Dominican Republic Textile Company Inc. Barbados 100 % Gildan Honduras Trading, S. de R. L. Honduras 100 % Gildan Choloma Textiles, S. de R. L. Honduras 100 % 3. SIGNIFICANT ACCOUNTING POLICIES (continued): (a) Basis of consolidation (continued): (ii) Subsidiaries (continued): The Company has no other subsidiaries representing individually more than 10% of the total consolidated assets and 10% of the consolidated net sales of the Company, or in the aggregate more than 20% of the total consolidated assets and the consolidated net sales of the Company as at and for the fiscal year ended January 2, 2022. (b) Foreign currency translation: Monetary assets and liabilities of the Company’s Canadian and foreign operations denominated in currencies other than the U.S. dollar are translated using exchange rates in effect at the reporting date. Non-monetary assets and liabilities denominated in currencies other than U.S. dollars are translated at the rates prevailing at the respective transaction dates. Income and expenses denominated in currencies other than U.S. dollars are translated at average rates prevailing during the year. Gains or losses on foreign exchange are recorded in net earnings and presented in the statement of earnings and comprehensive income within financial expenses. (c) Cash and cash equivalents: The Company considers all liquid investments with maturities of three months or less from the date of purchase to be cash equivalents. (d) Trade accounts receivable: Trade accounts receivable consist of amounts due from our normal business activities. An allowance for expected credit losses is maintained to reflect an impairment risk for trade accounts receivable based on an expected credit loss model which factors in changes in credit quality since the initial recognition of trade accounts receivable based on customer risk categories. Expected credit losses are also provided for based on collection history and specific risks identified on a customer-by-customer basis. Trade accounts receivable are presented net of allowances for expected credit losses, sales discounts, and sales returns when the Company has a right to offset the amounts. The Company may continuously sell trade accounts receivables of certain designated customers to a third-party financial institution in exchange for a cash payment equal to the face value of the sold trade receivables less an applicable discount. The Company retains servicing responsibilities, including collection, for these trade accounts receivables but does not retain any credit risk with respect to any trade accounts receivables that have been sold. All trade accounts receivables sold under the receivables purchase agreement are removed from the consolidated statements of financial position, as the sale of the trade accounts receivables qualify for de-recognition. The net cash proceeds received by the Company are included as cash flows from operating activities in the consolidated statements of cash flows. The difference between the carrying amount of the trade accounts receivables sold under the agreement and the cash received at the time of transfer is recorded in the statement of earnings and comprehensive income within financial expenses. 3. SIGNIFICANT ACCOUNTING POLICIES (continued): (e) Inventories: Inventories are stated at the lower of cost and net realizable value. The cost of inventories is based on the first-in, first-out principle, and reflect the various stages of production that inventories have reached at period-end. Inventory costs include the purchase price and other costs directly related to the acquisition of raw materials and spare parts held for use in the manufacturing process, and the cost of purchased finished goods. Inventory costs also include the costs directly related to the conversion of materials to finished goods, such as direct labour, and a systematic allocation of fixed and variable production overhead, including manufacturing depreciation expense. The allocation of fixed production overhead to the cost of inventories is based on the normal capacity of the production facilities. Additional costs incurred as a result of operating below the normal capacity of the production facilities are excluded from the carrying value of inventories and charged directly to cost of sales. Normal capacity is the average production expected to be achieved during the fiscal year, under normal circumstances. The Company manages its day-to-day production costs and inventories using a standard inventory costing system whereby the cost of a product is determined using pre-established rates for materials, labour and production overhead expenses based on the manufacturing specifications of the product. At period end, the Company assesses whether the variances between the standard costs and the actual costs incurred relate to the conversion of materials to finished goods, or if they represent abnormal costs that should be charged directly to cost of sales. The carrying value of inventories is then adjusted to record the manufacturing variances related to inventories still on hand and manufacturing variances related to inventories that have been sold are charged to cost of sales, through an allocation method which uses an estimated variance deferral factor based on the number of days of inventory on hand based on the most recent past production. The Company's inventory costing process involves a combination of automated and non-automated systems and processes using data obtained from different geographical locations. Net realizable value is the estimated selling price of finished goods in normal sales channels, or where applicable, liquidation channels, less the estimated costs of completion and selling expenses. Raw materials, work in progress, and spare parts inventories are not written down if the finished products in which they will be incorporated are expected to be sold at or above cost. (f) Assets held for sale: Non-current assets which are classified as assets held for sale are reported in current assets in the statement of financial position, when their carrying amount is to be recovered principally through a sale transaction rather than through continuing use, and a sale is considered highly probable. Assets held for sale are stated at the lower of their carrying amount and fair value less costs to sell. (g) Property, plant and equipment: Property, plant and equipment are initially recorded at cost and are subsequently carried at cost less any accumulated depreciation and any accumulated impairment losses. The cost of an item of property, plant and equipment includes expenditures that are directly attributable to the acquisition or construction of an asset. The cost of self-constructed assets includes the cost of materials and direct labour, site preparation costs, initial delivery and handling costs, installation and assembly costs, and any other costs directly attributable to bringing the assets to the location and condition necessary for the assets to be capable of operating in the manner intended by management. The cost of property, plant and equipment also includes, when applicable, borrowing costs, as well as the initial present value estimate of the costs of decommissioning or dismantling and removing the asset and restoring the site on which it is located at the end of its useful life which is amortized over the remaining life of the underlying asset. Purchased software that is integral to the functionality of the related equipment is capitalized as part of other equipment. Subsequent costs are included in an asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits are present and the cost of the item can be measured reliably. When property, plant and equipment are replaced they are fully written down. Gains and losses on the disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment and are recognized in the statement of earnings and comprehensive income. 3. SIGNIFICANT ACCOUNTING POLICIES (continued): (g) Property, plant and equipment (continued): Land is not depreciated. The cost of property, plant and equipment less its residual value, if any, is depreciated on a straight-line basis over the following estimated useful lives: Asset Useful life Buildings and improvements 5 to 40 years Manufacturing equipment 2 to 20 years Other equipment 3 to 10 years Significant components of plant and equipment which are identified as having different useful lives are depreciated separately over their respective useful lives. Depreciation methods, useful lives and residual values, if applicable, are reviewed and adjusted, if appropriate, on a prospective basis at the end of each fiscal year. Assets not yet utilized in operations include expenditures incurred to date for plant constructions or expansions which are still in process and equipment not yet placed into service as at the reporting date. Depreciation on these assets commences when the assets are available for use. Borrowing costs Borrowing costs that are directly attributable to the acquisition or construction of a qualifying asset are capitalized as part of the cost of the asset. A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use. Capitalization of borrowing costs ceases when the asset is completed and available for use. All other borrowing costs are recognized as financial expenses in the consolidated statement of earnings and comprehensive income as incurred. (h) Intangible assets: Definite life intangible assets are measured at cost less accumulated amortization and any accumulated impairment losses. Intangible assets include identifiable intangible assets acquired and consist of customer contracts and customer relationships, license agreements, trademarks, and non-compete agreements. Intangible assets also include computer software that is not an integral part of the related hardware. Indefinite life intangible assets represent intangible assets which the Company controls which have no contractual or legal expiration date and therefore are not amortized as there is no foreseeable time limit to their useful economic life. An assessment of indefinite life intangible assets is performed annually to determine whether events and circumstances continue to support an indefinite useful life and any change in the useful life assessment from indefinite to finite is accounted for as a change in accounting estimate on a prospective basis. Intangible assets with finite lives are amortized on a straight-line basis over the following estimated useful lives: Asset Useful life Customer contracts and customer relationships 7 to 20 years License agreements 3 to 10 years Computer software 4 to 7 years Trademarks with a finite life 5 years Non-compete agreements 2 years Most of the Company's trademarks are not amortized as they are considered to be indefinite life intangible assets. 3. SIGNIFICANT ACCOUNTING POLICIES (continued): (h) Intangible assets (continued): The costs of information technology projects that are directly attributable to the design and testing of identifiable and unique software products, including internally developed computer software, are recognized as intangible assets when the following criteria are met: • it is technically feasible to complete the software product so that it will be available for use; • management intends to complete the software product and use it; • there is an ability to use the software product; • it can be demonstrated how the software product will generate probable future economic benefits; • adequate technical, financial, and other resources to complete the development and to use the software product are available; and • the expenditures attributable to the software product during its development can be reliably measured. Other development expenditures that do not meet these criteria are recognized as an expense in the consolidated statement of earnings and comprehensive income as incurred. (i) Goodwill: Goodwill is measured at cost less accumulated impairment losses, if any. Goodwill arises on business combinations and is measured as the excess of the consideration transferred and the recognized amount of the non-controlling interest in the acquired business, if any, over the fair value of identifiable assets acquired and liabilities assumed of an acquired business. (j) Impairment of non-financial assets: Non-financial assets that have an indefinite useful life such as goodwill and trademarks are not subject to amortization and are therefore tested annually for impairment or more frequently if events or changes in circumstances indicate that the asset might be impaired. Assets that are subject to amortization are assessed at the end of each reporting period as to whether there is any indication of impairment or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s value in use and fair value less costs of disposal. The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets, in which case assets are grouped at the lowest levels for which there are separately identifiable cash inflows (i.e. cash-generating units or "CGUs"). In assessing value in use, the estimated future cash flows expected to be derived from the asset or CGU by the Company are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset and or the CGU. In assessing a CGU’s fair value less costs of disposal, the Company uses the best information available to reflect the amount that the Company could obtain, at the time of the impairment test, from the disposal of the asset or CGU in an arm’s length transaction between knowledgeable, willing parties, after deducting the estimated costs of disposal. For the purpose of testing goodwill for impairment, goodwill acquired in a business combination is allocated to a CGU or a group of CGUs that is expected to benefit from the synergies of the combination, regardless of whether other assets or liabilities of the acquired company are assigned to those CGUs. Impairment losses recognized are allocated first to reduce the carrying amount of any goodwill allocated to the CGU and then to reduce the carrying amounts of the other assets in the CGU on a pro rata basis. Impairment losses are recognized in the statement of earnings and comprehensive income. Reversal of impairment losses A goodwill impairment loss is not reversed. Impairment losses on non-financial assets other than goodwill recognized in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized. 3. SIGNIFICANT ACCOUNTING POLICIES (continued): (k) Financial instruments: The Company initially recognizes financial assets on the trade date at which the Company becomes a party to the contractual provisions of the instrument. Financial assets are initially measured at fair value. If the financial asset is not subsequently accounted for at fair value through profit or loss, then the initial measurement includes transaction costs that are directly attributable to the asset’s acquisition or origination. On initial recognition, the Company classifies its financial assets as subsequently measured at either amortized cost or fair value, depending on its business model for managing the financial assets and the contractual cash flow characteristics of the financial assets. Financial assets Financial assets are classified into the following categories and depend on the purpose for which the financial assets were acquired. Financial assets measured at amortized cost A financial asset is subsequently measured at amortized cost, using the effective interest method and net of any impairment loss, if: • The asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows; and • The contractual terms of the financial asset give rise, on specified dates, to cash flows that are solely payments of principal and/or interest. The Company currently classifies its cash and cash equivalents, trade accounts receivable, certain other current assets (excluding derivative financial instruments designated as effective hedging instruments), and long-term non-trade receivables as financial assets measured at amortized cost. The Company de-recognizes a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred. Financial assets measured at fair value These assets are measured at fair value and changes therein, including any interest or dividend income, are recognized in profit or loss. However, for investments in equity instruments that are not held for trading, the Company may elect at initial recognition to present gains and losses in other comprehensive income. For such investments measured at fair value through other comprehensive income, gains and losses are never reclassified to profit or loss, and no impairment is recognized in profit or loss. Dividends earned from such investments are recognized in profit or loss, unless the dividend clearly represents a repayment of part of the cost of the investment. The Company currently has no significant financial assets measured at fair value other than derivative financial instruments. Fair value through other comprehensive income ("FVOCI") A debt investment is measured at FVOCI if it is not designated as at fair value through profit or loss, is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets, and its contractual terms give rise to cash flows on specified dates that are solely payments of principal and interest on the principal amount outstanding. These assets are subsequently measured at fair value. Interest income calculated using the effective interest method, foreign exchange gains and losses and impairment are recognized in profit or loss. Other net gains and losses are recognized in other comprehensive income ("OCI"). On derecognition, gains and losses accumulated in OCI are reclassified to profit or loss. On initial recognition of an equity investment that is not held for trading, the Company may irrevocably elect to present subsequent changes in the investments fair value in OCI. This election is made on an investment by investment basis. These assets are subsequently measured at fair value. Dividends are recognized as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognized in OCI and are never reclassified to profit or loss. The Company currently has no financial assets measured at FVOCI. 3. SIGNIFICANT ACCOUNTING POLICIES (continued): (k) Financial instruments (continued): Financial liabilities Financial liabilities are classified into the following categories. Financial liabilities measured at amortized cost A financial liability is subsequently measured at amortized cost, using the effective interest method. The Company currently classifies accounts payable and accrued liabilities (excluding derivative financial instruments designated as effective hedging instruments), and long-term debt bearing interest at variable and fixed rates as financial liabilities measured at amortized cost. Financial liabilities measured at fair value Financial liabilities at fair value are initially recognized at fair value and are remeasured at each reporting date with any changes therein recognized in net earnings. The Company currently has no significant financial liabilities measured at fair value. The Company derecognizes a financial liability when its contractual obligations are discharged or cancelled or expired. Financial assets and liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Company has a legal right to offset the amounts and intends either to settle on a net basis or to realize the asset and settle the liability simultaneously. Fair value of financial instruments Financial instruments measured at fair value use the following fair value hierarchy to prioritize the inputs used in measuring fair value: • Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities; • Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and • Level 3: inputs for the asset or liability that are not based on observable market data. Impairment of financial assets The Company recognizes loss allowances for expected credit losses on financial assets measured at amortized cost. The Company recognizes a loss allowance at an amount equal to the lifetime expected credit losses if the credit risk on that financial instrument has increased significantly since initial recognition. Otherwise, the loss allowance for that financial instrument corresponds to an amount equal to twelve-month expected credit losses. The Company uses the simplified method to measure the loss allowance for trade receivables at lifetime expected losses. The Company uses historical trends of default, the timing of recoveries and the amount of loss incurred, adjusted for management’s judgement as to whether current economic and credit conditions are such that the actual losses are likely to be greater or less than suggested by historical trends. Losses are recognized in the consolidated statement of income and reflected in an allowance account against trade and other receivables. (l) Derivative financial instruments and hedging relationships: The Company enters into derivative financial instruments to hedge its market risk exposures. On initial designation of the hedge, the Company formally documents the relationship between the hedging instruments and hedged items, including the risk management objectives and strategy in undertaking the hedge transaction, together with the methods that will be used to assess the effectiveness of the hedging relationship. The Company makes an assessment, both at the inception of the hedge relationship as well as on an ongoing basis, whether the hedging instruments are expected to be effective in offsetting the changes in the fair value or cash flows of the respective hedged items during the period for which the hedge is designated. For a cash flow hedge of a forecasted transaction, the transaction should be highly probable to occur and should present an exposure to variations in cash flows that could ultimately affect reported net earnings. Derivatives are recognized initially at fair value, and attributable transaction costs are recognized in net earnings as incurred. Subsequent to initial recognition, derivatives are measured at fair value, and changes therein are accounted for as described below. 3. SIGNIFICANT ACCOUNTING POLICIES (continued): (l) Derivative financial instruments and hedging relationships (continued): Cash flow hedges When a derivative is designated as the hedging instrument in a hedge of the variability in cash flows attributable to a particular risk associated with a recognized asset or liability or a highly probable forecasted transaction that could affect net earnings, the effective portion of changes in the fair value of the derivative is recognized in other comprehensive income and presented in accumulated other comprehensive income as part of equity. The amount recognized in other comprehensive income is removed and included in net earnings under the same line item in the consolidated statement of earnings and comprehensive income as the hedged item, in the same period that the hedged cash flows affect net earnings. When a hedged forecasted transaction subsequently results in the recognition of a non-financial asset or liability, the cash flow hedge reserve is removed from accumulated other comprehensive income and included in the initial cost or carrying amount of the asset or liability. Any ineffective portion of changes in the fair value of the derivative is recognized immediately in net earnings. If the hedging instrument no longer meets the criteria for hedge accounting, expires or is sold, terminated, exercised, or the designation is revoked, then hedge accounting is discontinued prospectively. If the forecasted transaction is no longer expected to occur, then the balance in accumulated other comprehensive income is recognized immediately in net earnings. Fair value hedges Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognized in net earnings, together with any changes in the fair value of the hedged asset, liability or firm commitment that are attributable to the hedged risk. The change in fair value of the hedging instrument and the change in the hedged item attributable to the hedged risk are recognized in the statement of earnings and comprehensive income or in the statement of financial position caption relating to the hedged item. If the hedging instrument no longer meets the criteria for hedge accounting, expires or is sold, terminated, exercised, or the designation is revoked, then hedge accounting is discontinued prospectively. Embedded derivatives Embedded derivatives within a financial liability are separated from the host contract and accounted for separately if the economic characteristics and risks of the host contract and the embedded derivative are not closely related, a separate instrument with the same terms as the embedded derivative would meet the definition of a derivative, and the combined instrument is not measured at fair value through profit or loss. Other derivatives When a derivative financial instrument is not designated in a qualifying hedge relationship, all changes in its fair value are recognized immediately in net earnings. (m) Accounts payable and accrued liabilities: Accounts payable and accrued liabilities are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method. Accounts payable and accrued liabilities are classified as current liabilities if payment is due within one year, otherwise, they are presented as non-current liabilities. (n) Long-term debt: Long-term debt is recognized initially at fair value and is subsequently carried at amortized cost. Initial facility fees are deferred and treated as an adjustment to the instrument's effective interest rate and recognized as an expense over the instrument's estimated life if it is probable that the facility will be drawn down. However, if it is not probable that a facility will be drawn down for its entire term, then the fees are considered service fees and are deferred and recognized as an expense on a straight-line basis over the commitment period. 3. SIGNIFICANT ACCOUNTING POLICIES (continued): (o) Employee benefits: Short-term employee benefits Short-term employee benefits include wages, salaries, commissions, compensated absences and bonuses. Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. A liability is recognized for the amount expected to be paid under short-term cash bonus or profit sharing plans if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee, and the obligation can be estimated reliably. Short-term employee benefit obligations are included in accounts payable and accrued liabilities. Defined contribution plans The Company offers group defined contribution plans to eligible employees whereby the Company matches employees' contributions up to a fixed percentage of the employee's salary. Contributions by the Company to trustee-managed investment portfolios or employee associations are expensed as incurred. Benefits are also provided to employees through defined contribution plans administered by the governments in the countries in which the Company operates. The Company’s contributions to these plans are recognized in the period when services are rendered. Defined benefit plans The Company main |
NEW ACCOUNTING STANDARDS AND IN
NEW ACCOUNTING STANDARDS AND INTERPRETATIONS NOT YET APPLIED | 12 Months Ended |
Jan. 02, 2022 | |
Accounting policies, changes in accounting estimates and errors [Abstract] | |
NEW ACCOUNTING STANDARDS AND INTERPRETATIONS NOT YET APPLIED | NEW ACCOUNTING STANDARDS AND INTERPRETATIONS NOT YET APPLIED: Amendments to IAS 1, Presentation of Financial Statements On January 23, 2020, the IASB issued narrow-scope amendments to IAS 1, Presentation of Financial Statements, to clarify how to classify debt and other liabilities as current or non-current. The amendments (which affect only the presentation of liabilities in the statement of financial position) clarify that the classification of liabilities as current or non-current should be based on rights that are in existence at the end of the reporting period to defer settlement by at least twelve months and make explicit that only rights in place at the end of the reporting period should affect the classification of a liability; clarify that classification is unaffected by expectations about whether an entity will exercise its right to defer settlement of a liability; and make clear that settlement refers to the transfer to the counterparty of cash, equity instruments, other assets, or services. The amendments are effective for annual reporting periods beginning on or after January 1, 2023 and are to be applied retrospectively. Earlier application is permitted. The Company is currently evaluating the impact of the amendment on its consolidated financial statements. Amendments to IAS 1 and IFRS Practice Statement 2, Disclosure of Accounting Policy Information In February 2021, the IASB issued amendments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2 Making Materiality Judgements. The amendments help entities provide accounting policy disclosures that are more useful to primary users of financial statements by: – Replacing the requirement to disclose “significant” accounting policies under IAS 1 with a requirement to disclose “material” accounting policies. Under this, an accounting policy would be material if, when considered together with other information included in an entity’s financial statements, it can reasonably be expected to influence decisions that primary users of general purpose financial statements make on the basis of those financial statements. – Providing guidance in IFRS Practice Statement 2 to explain and demonstrate the application of the four-step materiality process to accounting policy disclosures. The amendments shall be applied prospectively. The amendments to IAS 1 are effective for annual periods beginning on or after January 1, 2023. Earlier application is permitted. Once an entity applies the amendments to IAS 1, it is also permitted to apply the amendments to IFRS Practice Statement 2. The Company is currently evaluating the impact of the amendment on its consolidated financial statements. Amendments to IAS 8, Definition of Accounting Estimates In February 2021, the IASB amended IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors to introduce a new definition of “accounting estimates” to replace the definition of “change in accounting estimates” and also include clarifications intended to help entities distinguish changes in accounting policies from changes in accounting estimates. This distinction is important because changes in accounting policies must be applied retrospectively while changes in accounting estimates are accounted for prospectively. The amendments are effective for annual periods beginning on or after January 1, 2023. Earlier application is permitted. The Company is currently evaluating the impact of the amendment on its consolidated financial statements. Amendments to IAS 12, Deferred Tax related to Assets and Liabilities arising from a Single Transaction On May 7 2021, the IASB amended IAS 12 Income Taxes, to narrow the scope of the initial recognition exemption so that it does not apply to transactions that give rise to equal and offsetting temporary differences. The amendments are effective for annual periods beginning on or after January 1, 2023. The Company is currently evaluating the impact of the amendment on its consolidated financial statements. |
BUSINESS ACQUISITIONS
BUSINESS ACQUISITIONS | 12 Months Ended |
Jan. 02, 2022 | |
Business Combinations1 [Abstract] | |
BUSINESS ACQUISITIONS | BUSINESS ACQUISITIONS: Frontier Yarns On December 10, 2021, the Company acquired 100% of the equity interest of Phoenix Sanford, LLC, the parent company of Frontier Yarns, for cash consideration (net of cash acquired and net of the settlement of pre-existing relationships) of $164.0 million. Frontier Yarns operations include four facilities located in North Carolina. During 2021, approximately 40% of Frontier Yarns' production was dedicated to yarn sold to Gildan for textile manufacturing in Central America and the Caribbean. The acquisition will allow the Company to build on its global vertically integrated supply chain through further internalizing yarn production and is expected to support incremental yarn needs for Gildan’s textile capacity expansion plans in Central America and the Caribbean. The Company accounted for this acquisition using the acquisition method in accordance with IFRS 3, Business Combinations. The Company determined the fair value of the assets acquired and liabilities assumed based on management's preliminary best estimate of their fair values and taking into account all relevant information available at that time. The Company has not yet finalized the assessment of the estimated fair value of net assets acquired and liabilities assumed, which the Company expects to finalize by the one year anniversary at the latest. Goodwill is attributable primarily to the assembled workforce and business processes of Frontier Yarns which were not recorded separately since they did not meet the recognition criteria for identifiable intangible assets. The preliminary determination of the fair value of net assets acquired and liabilities assumed arising from the acquisition are as follows: Assets acquired: Inventories $ 23,799 Prepaid expenses, deposits and other current assets (1) 29,845 Property, plant and equipment 64,306 Right-of-use assets 43,539 Other non-current assets 9 161,498 Liabilities assumed: Accounts payable and accrued liabilities (30,191) Current portion of lease obligations (1,940) Lease obligations (41,599) Deferred income taxes (979) (74,709) Goodwill 77,179 Net assets acquired at fair value $ 163,968 Cash consideration paid at closing, net of cash acquired 167,040 Settlement of pre-existing relationships (3,072) $ 163,968 (1) Includes $26.2 million of trade receivables of Frontier Yarns, that have been classified in Prepaid expenses, deposits and other current assets in the consolidated statement of financial position of the Company. The consolidated results of the Company for fiscal 2021 include net earnings of $0.3 million relating to the Frontier Yarns results of operations since the date of acquisition. Had the acquired business been consolidated from January 4, 2021, the consolidated income statement would have shown net sales and net earnings for the fiscal year ended January 2, 2022 of nil and $612.4 million, respectively. The pro forma amount has been estimated based on the results of Frontier Yarns’ operations prior to the business combination by the Company, adjusted to reflect the elimination of intercompany sales, and fair value adjustments which arose on the date of acquisition, as if the acquisition occurred on January 4, 2021, and should not be viewed as indicative of the Company’s future results. |
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS | 12 Months Ended |
Jan. 02, 2022 | |
Cash and cash equivalents [abstract] | |
CASH AND CASH EQUIVALENTS | CASH AND CASH EQUIVALENTS:Cash and cash equivalents consisted entirely of bank balances as at January 2, 2022 and January 3, 2021. |
TRADE ACCOUNTS RECEIVABLE
TRADE ACCOUNTS RECEIVABLE | 12 Months Ended |
Jan. 02, 2022 | |
Subclassifications of assets, liabilities and equities [abstract] | |
FINANCIAL RISK MANAGEMENT | TRADE ACCOUNTS RECEIVABLE: January 2, 2022 January 3, 2021 Trade accounts receivable $ 343,671 $ 215,474 Allowance for expected credit losses (13,704) (18,994) $ 329,967 $ 196,480 As at January 2, 2022, trade accounts receivables being serviced under a receivables purchase agreement amounted to $144.9 million (January 3, 2021 - $145.2 million). The difference between the carrying amount of the receivables sold under the agreement and the cash received at the time of transfer was $1.6 million for fiscal 2021 (2020 - $2.0 million) and was recorded in bank and other financial charges. Refer to note 26 for additional information related to the receivables purchase agreement. The movement in the allowance for expected credit losses in respect of trade receivables was as follows: 2021 2020 Balance, beginning of fiscal year $ (18,994) $ (7,184) Reversal of impairment (Impairment) of trade accounts receivable 2,617 (15,453) Write-off of trade accounts receivable 2,673 3,643 Balance, end of fiscal year $ (13,704) $ (18,994) During fiscal 2021, the Company adjusted its provision matrix to decrease expected credit loss rates as the economic environment improved, resulting in a reversal of impairment of trade accounts receivable for the year ended January 2, 2022. The impairment of trade accounts receivable for fiscal 2020 was mainly related to an increase in the estimate of expected credit loss rates attributable to the heightened credit risk caused by the economic conditions related to the COVID-19 pandemic. Due to the nature of the activities that the Company carries out and as a result of holding financial instruments, the Company is exposed to risks arising from financial instruments, including credit risk, liquidity risk, foreign currency risk, interest rate risk, commodity price risk, as well as risks arising from changes in the price of its common shares under the Company's share-based compensation plans. The Company may periodically use derivative financial instruments to manage risks related to fluctuations in foreign exchange rates, commodity prices, interest rates, and the market price of its own common shares. The use of derivative financial instruments is governed by the Company’s Financial Risk Management Policy approved by the Board of Directors and is administered by the Financial Risk Management Committee. The Financial Risk Management Policy of the Company stipulates that derivative financial instruments should only be used to hedge or mitigate an existing financial exposure that constitutes a commercial risk to the Company, and if the derivatives are determined to be the most efficient and cost effective means of mitigating the Company’s exposure to liquidity risk, foreign currency risk, and interest rate risk, as well as risks arising from commodity prices. Hedging limits, as well as counterparty credit rating and exposure limitations are defined in the Company’s Financial Risk Management Policy, depending on the type of risk that is being mitigated. Derivative financial instruments are not used for speculative purposes. At the inception of each designated hedging derivative contract, the Company formally designates and document the hedging relationship and its risk management objective and strategy for undertaking the hedge. Documentation includes identification of the hedging instrument, the hedged item, the nature of the risk being hedged, and how the Company will assess whether the hedging relationship meets the hedge effectiveness requirements, including its analysis of the sources of hedge ineffectiveness and how they determine the hedge ratio. Credit risk Credit risk is the risk of an unexpected loss if a customer or counterparty to a financial instrument fails to meet its contractual obligations and arises primarily from the Company’s trade accounts receivable. The Company may also have credit risk relating to cash and cash equivalents and derivative financial instruments, which it manages by dealing only with highly rated North American and European financial institutions. The Company's credit risk may also be exacerbated during periods of weak general economic and financial conditions. The Company's trade accounts receivable and credit exposure fluctuate throughout the year based on the seasonality of its sales and other factors. The Company’s average trade accounts receivable and credit exposure during an interim reporting period may be significantly higher than the balance at the end of that reporting period. In addition, due to the historical seasonality of the Company’s net sales, the Company’s trade accounts receivable balance as at the end of a calendar year will typically be lower than at the end of an interim reporting period. Under the terms of a receivables purchase agreement, the Company may continuously sell trade accounts receivables of certain designated customers to a third-party financial institution in exchange for a cash payment equal to the face value of the sold trade accounts receivables, less an applicable discount. The Company retains servicing responsibilities, including collection, for these trade accounts receivables but does not retain any credit risk with respect to any trade accounts receivables that have been sold. All trade accounts receivables sold under the receivables purchase agreement are removed from the consolidated statements of financial position, as the sale of the trade accounts receivables qualify for de-recognition. The receivables purchase agreement, which allows for the sale of a maximum of $225 million of accounts receivables at any one time, expires on June 20, 2022, subject to annual extensions. The Company’s credit risk for trade accounts receivables is concentrated as the majority of its sales are to a relatively small group of wholesale distributors and mass-market and other retailers. As at January 2, 2022, the Company’s ten largest trade debtors accounted for 78% of trade accounts receivable (2020 - 76%); the largest of which accounted for 24% (2020 - 23%). The Company’s main trade debtors are located in the U.S. The remaining trade accounts receivable balances are dispersed among a larger number of debtors across many geographic areas including the U.S., Canada, Europe, Asia-Pacific, and Latin America. 26. FINANCIAL RISK MANAGEMENT (continued): Credit risk (continued) Most of the Company’s customers have been transacting with the Company or its subsidiaries for several years. Certain wholesale distributors are highly leveraged with significant reliance on trade credit terms provided by a few major vendors, including the Company, and third-party debt financing, including bank debt secured with trade accounts receivable and inventory pledged as collateral. The financial leverage of these customers may limit or prevent their ability to refinance existing indebtedness or to obtain additional financing and could affect their ability to comply with restrictive debt covenants and meet other obligations. The profile and credit quality of the Company’s mass-market and other retailer customers vary significantly. The Company’s extension of credit to customers involves considerable judgment and is based on an evaluation of each customer’s financial condition and payment history. The Company has established various internal controls designed to mitigate credit risk, including a dedicated credit function which recommends customer credit limits and payment terms that are reviewed and approved on a quarterly basis by senior management at the Company’s primary sales offices in Christ Church, Barbados. Where available, the Company’s credit departments periodically review external ratings and customer financial statements and, in some cases, obtain bank and other references. New customers are subject to a specific validation and pre-approval process. From time to time, where circumstances warrant, the Company will temporarily transact with customers on a prepayment basis. While the Company’s credit controls and processes have been effective in mitigating credit risk, these controls cannot eliminate credit risk in its entirety and there can be no assurance that these controls will continue to be effective or that the Company’s historical credit loss experience will continue. The Company’s exposure to credit risk for trade accounts receivable by geographic area was as follows as at: January 2, January 3, Trade accounts receivable by geographic area: United States $ 296,100 $ 167,080 Canada 16,954 11,192 Europe and other 16,913 18,208 Total trade accounts receivable $ 329,967 $ 196,480 The aging of trade accounts receivable balances was as follows as at: January 2, January 3, Not past due $ 318,528 $ 173,354 Past due 0-30 days 9,352 16,572 Past due 31-60 days 3,667 4,360 Past due 61-120 days 2,903 5,912 Past due over 121 days 9,221 15,276 Trade accounts receivable 343,671 215,474 Less allowance for expected credit losses (13,704) (18,994) Total trade accounts receivable $ 329,967 $ 196,480 26. FINANCIAL RISK MANAGEMENT (continued): Liquidity risk Liquidity risk is defined as the potential risk that the Company will not be able to meet its financial obligations as they fall due. The Company manages its liquidity risk through the management of its capital structure and financial leverage, as outlined in note 25 to these consolidated financial statements. In addition, the Company manages this risk by continuously monitoring actual and projected cash flows, taking into account the seasonality of its sales and cash receipts and the expected timing of capital expenditures. In managing its liquidity risk, the Company relies on cash resources, debt, and cash flows generated from operations to satisfy its financing requirements. The Company may also require access to capital markets to support its operations as well as to achieve its strategic plans. Any impediments to the Company's ability to continue to meet the covenants and conditions contained in its long-term debt agreements as well as the Company's ability to access capital markets, the failure of a financial institution participating in its revolving long-term bank credit facilities, or an adverse perception in capital markets of the Company's financial condition or prospects could have a material impact on its future financing capability. In addition, the Company's access to capital markets and to financing at reasonable terms and interest rates could be influenced by the economic and credit market environment, including a potential prolonged economic downturn and recessions resulting from the unprecedented nature of the COVID-19 pandemic. The following tables present a maturity analysis based on contractual maturity date of the Company's financial liabilities. All commitments have been reflected in the consolidated statements of financial position except for purchase obligations, as well as minimum royalty payments, which are included in the table of contractual obligations below. The amounts are the contractual undiscounted cash flows. Carrying Contractual Less than Between 1 Between 4 More than (in $ millions) amount cash flows 1 year and 3 years and 5 years 5 years Accounts payable and accrued liabilities 440.4 440.4 440.4 — — — Long-term debt 600.0 600.0 — 150.0 450.0 — Purchase and other obligations — 392.9 320.8 54.5 14.9 2.7 Lease obligations 109.1 133.2 21.2 28.2 22.4 61.4 Total contractual obligations 1,149.5 1,566.5 782.4 232.7 487.3 64.1 As disclosed in note 24, the Company has granted financial guarantees, irrevocable standby letters of credit, and surety bonds to third parties to indemnify them in the event the Company and some of its subsidiaries do not perform their contractual obligations. As at January 2, 2022, the maximum potential liability under these guarantees was $121.3 million, of which $10.5 million was for surety bonds and $110.8 million was for financial guarantees and standby letters of credit. 26. FINANCIAL RISK MANAGEMENT (continued): Foreign currency risk The majority of the Company’s cash flows and financial assets and liabilities are denominated in U.S. dollars, which is the Company’s functional and reporting currency. Foreign currency risk is mainly limited to the portion of the Company’s business transactions denominated in currencies other than U.S. dollars, primarily for sales and distribution expenses for customers outside the U.S., certain equipment purchases, and head office expenses in Canada. The Company’s exposure relates primarily to changes in the U.S. dollar versus the Canadian dollar, the Pound sterling, the Euro, the Australian dollar, the Mexican peso, and the Chinese yuan. For the Company’s foreign currency transactions, fluctuations in the respective exchange rates relative to the U.S. dollar will create volatility in the Company’s cash flows, in the reported amounts for sales and SG&A expenses in its consolidated statement of earnings and comprehensive income, and for property, plant and equipment in its consolidated statement of financial position, both on a period-to-period basis and compared with operating budgets and forecasts. Additional earnings variability arises from the translation of monetary assets and liabilities denominated in currencies other than the U.S. dollar at the rates of exchange at each reporting dates, the impact of which is reported as a foreign exchange gain or loss and included in financial expenses (net) in the statement of earnings and comprehensive income. The Company also incurs a portion of its manufacturing costs in foreign currencies, primarily payroll costs paid in Honduran Lempiras, Dominican Pesos, Mexican Pesos, Nicaraguan Cordobas, as well as in Bangladeshi Taka. Significant changes in these currencies relative to the U.S. dollar exchange rate in the future, could have a significant impact on the Company's operating results. The Company’s objective in managing its foreign currency risk is to minimize its net exposures to foreign currency cash flows, by transacting with third parties in U.S. dollars to the maximum extent possible and practical and holding cash and cash equivalents and incurring borrowings in U.S. dollars. The Company monitors and forecasts the values of net foreign currency cash flows and, from time to time will authorize the use of derivative financial instruments, such as forward foreign exchange contracts with maturities of up to three years, to economically hedge a portion of foreign currency cash flows. The Company had forward foreign exchange contracts outstanding as at January 2, 2022, consisting primarily of contracts to sell and buy Canadian dollars, sell Euros, sell Pounds sterling, sell Australian dollars, and sell Mexican pesos in exchange for U.S. dollars. The outstanding contracts and other foreign exchange contracts that were settled during fiscal 2021 were designated as cash flow hedges and qualified for hedge accounting. The underlying risk of the foreign exchange contracts is identical to the hedged risk and, accordingly, the Company has established a ratio of 1:1 for all foreign exchange hedges. The following tables provide an indication of the Company’s significant foreign currency exposures included in the consolidated statement of financial position as at January 2, 2022 arising from financial instruments: January 2, 2022 (in U.S. $ millions) CAD GBP EUR AUD MXN CNY BDT COP JPY Cash and cash equivalents 6.1 1.7 3.3 1.8 5.3 4.5 4.2 1.9 0.9 Trade accounts receivable 16.9 — 7.0 3.9 2.6 0.7 — — — Prepaid expenses, deposits and other current 0.4 0.3 2.1 — 0.1 0.4 2.4 0.7 — Accounts payable and accrued liabilities (21.0) (0.6) (3.7) (0.6) (1.0) (2.9) (6.8) — — Based on the Company’s foreign currency exposures arising from financial instruments noted above, and the impact of outstanding derivative financial instruments designated as effective hedging instruments, varying the foreign exchange rates to reflect a 5 percent strengthening of the U.S. dollar would have (decreased) increased earnings and other comprehensive income as follows, assuming that all other variables remained constant: For the year ended January 2, 2022 (in U.S. $ millions) CAD GBP EUR AUD MXN CNY BDT COP JPY Impact on earnings before income taxes (0.1) (0.1) (0.4) (0.3) (0.3) (0.1) — (0.1) — Impact on other comprehensive income before income taxes 0.3 1.7 1.6 0.3 0.3 — — — — 26. FINANCIAL RISK MANAGEMENT (continued): Foreign currency risk (continued): An assumed 5 percent weakening of the U.S. dollar during the year ended January 2, 2022 would have had an equal but opposite effect on the above currencies to the amounts shown above, assuming that all other variables remain constant. Commodity risk The Company is subject to the commodity risk of cotton prices and cotton price movements, as the majority of its products are made of 100% cotton or blends of cotton and synthetic fibers. The Company is also subject to the risk of fluctuations in the prices of crude oil and petrochemicals as they influence the cost of polyester fibers which are used in many of its products. The Company purchases cotton from third-party merchants, cotton-based yarn from third-party yarn manufacturers, and polyester fibers from third-party polyester manufacturers. The Company assumes the risk of price fluctuations for these purchases. The Company enters into contracts, up to eighteen months in advance of future delivery dates, to establish fixed prices for its cotton and cotton-based yarn purchases and polyester fibers purchases, in order to reduce the effects of fluctuations in the cost of cotton, crude oil, and petrochemicals used in the manufacture of its products. These contracts are not used for trading purposes and are not considered to be financial instruments that would need to be accounted for at fair value in the Company’s consolidated financial statements. Without taking into account the impact of fixed price contracts, a change of $0.01 per pound in the price of cotton would affect the Company’s annual raw material costs by approximately $6 million, based on current production levels. In addition, fluctuations in crude oil or petroleum prices also affect the Company's energy consumption costs and can influence transportation costs and the cost of related items used in its business, including other raw materials the Company uses to manufacture its products such as chemicals, dyestuffs, and trims. The Company generally purchases these raw materials at market prices. The Company also has the ability to enter into derivative financial instruments, including futures and option contracts, to manage its exposure to movements in commodity prices. Such contracts are accounted for at fair value in these consolidated financial statements in accordance with the accounting standards applicable to financial instruments. During fiscal 2021, the Company entered into commodity derivative contracts as described in note 15. The underlying risk of the commodity derivative contracts is identical to the hedged risk and accordingly, the Company has established a ratio of 1:1 for all commodity derivative hedges. Due to a strong correlation between commodity future contract prices and its purchased costs, the Company did not experience any significant ineffectiveness on its hedges, other than as disclosed in note 15(d). Interest rate risk The Company is subject to interest rate risk arising from its $300 million term loan, $100 million of its unsecured notes payable, and amounts drawn on its revolving long-term bank credit facilities, all of which bear interest at a variable U.S. LIBOR-based interest rate, plus a spread. The Company generally fixes the rates for LIBOR-based borrowings for periods of one to three months. The interest rates on amounts drawn on debt agreements and on any future borrowings will vary and are unpredictable. Increases in interest rates on new debt issuances may result in a material increase in financial charges. The Company has the ability to enter into derivative financial instruments that would effectively fix its cost of current and future borrowings for an extended period of time. The Company has floating-to-fixed interest rate swaps outstanding to hedge up to $250 million of its floating interest rate exposure on a designated portion of certain long-term debt agreements. The interest rate swap contracts are designated as cash flow hedges and qualify for hedge accounting. Refer to note 15 (b) for additional information. 26. FINANCIAL RISK MANAGEMENT (continued): Interest rate risk (continued): The Company has begun discussions with its lenders to amend existing debt agreements to include LIBOR fallback provisions. LIBOR is still being used as the interest rate benchmark in its existing debt agreements. In addition, the Company and its counterparties under interest rate swap agreements are expected to negotiate the substitution of reference rates in such agreements. Refer to note 15 (d) for additional information. As at January 2, 2022, the Company has $400 million of term loans and private placements with a U.S. LIBOR-based interest rate. The Company's floating rate debt has a variable rate of interest linked to LIBOR as a benchmark for establishing the rate. However, the changes to LIBOR which were effective after January 1, 2021 did not impact the cost of the Company's variable rate indebtedness, as LIBOR is still being used as the interest rate benchmark in its existing debt agreements. In July 2017, the United Kingdom’s Financial Conduct Authority (FCA), which regulates LIBOR, announced that it intends to stop persuading or compelling banks to submit rates for the calculation of LIBOR to the administrator of LIBOR after 2021. In March 2021, the FCA announced that it will cease the issuance of the EUR, CHF, JPY and GBP LIBOR for all tenors, as well as the one week and two month USD LIBOR at the end of December 31, 2021. All other USD LIBOR tenors will cease at the end of June 30, 2023. The Company is currently managing the process to transition the existing impacted agreements to an alternative rate (such as a new widely recognized benchmark rates for newly originated loans) for the calculation of interest rates under its floating rate debt. The Company may incur expenses in effecting the transition, and may be subject to disputes or litigation with lenders over the appropriateness or comparability to LIBOR of the substitute reference rates. Based on the value of interest-bearing financial instruments during the year ended January 2, 2022, an assumed 0.5 percentage point increase in interest rates during such period would have decreased earnings before income taxes by $1.2 million. An assumed 0.5 percentage point decrease in interest rates would have had an equal but opposite effect on earnings before income taxes, assuming that all other variables remain constant. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Jan. 02, 2022 | |
Inventories [Abstract] | |
INVENTORIES | INVENTORIES: January 2, 2022 January 3, 2021 Raw materials and spare parts inventories $ 183,065 $ 124,243 Work in progress 53,482 42,590 Finished goods 537,811 561,159 $ 774,358 $ 727,992 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Jan. 02, 2022 | |
Property, plant and equipment [abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT: Land Buildings and improvements Manufacturing equipment Other equipment Assets not yet utilized in operations Total 2021 Cost Balance, January 3, 2021 $ 123,549 $ 571,464 $ 1,070,612 $ 174,760 $ 16,156 $ 1,956,541 Additions 3,519 4,008 44,381 5,914 73,679 131,501 Additions through business acquisitions — 13,397 50,817 92 — 64,306 Transfers — 4,579 8,320 276 (13,175) — Disposals (1) — (10,805) (65,002) (9,895) — (85,702) Balance, January 2, 2022 $ 127,068 $ 582,643 $ 1,109,128 $ 171,147 $ 76,660 $ 2,066,646 Accumulated depreciation Balance, January 3, 2021 $ — $ 230,088 $ 695,979 $ 133,674 $ — $ 1,059,741 Depreciation — 22,696 58,435 11,045 — 92,176 Disposals (1) — (7,813) (54,426) (8,139) — (70,378) Write-downs and impairments — — — 34 — 34 Balance, January 2, 2022 $ — $ 244,971 $ 699,988 $ 136,614 $ — $ 1,081,573 Carrying amount, January 2, 2022 $ 127,068 $ 337,672 $ 409,140 $ 34,533 $ 76,660 $ 985,073 Land Buildings and improvements Manufacturing equipment Other equipment Assets not yet utilized in operations Total 2020 Cost Balance, December 29, 2019 $ 120,478 $ 558,847 $ 1,149,837 $ 171,361 $ 37,670 $ 2,038,193 Additions 3,812 8,549 10,826 5,657 13,794 42,638 Transfers — 5,506 28,441 1,361 (35,308) — Disposals (1) (741) (1,438) (118,492) (3,619) — (124,290) Balance, January 3, 2021 $ 123,549 $ 571,464 $ 1,070,612 $ 174,760 $ 16,156 $ 1,956,541 Accumulated depreciation Balance, December 29, 2019 $ — $ 205,834 $ 714,478 $ 122,901 $ — $ 1,043,213 Depreciation — 24,537 70,497 13,418 — 108,452 Disposals (1) — (304) (94,883) (2,750) — (97,937) Write-downs and impairments — 21 5,887 105 — 6,013 Balance, January 3, 2021 $ — $ 230,088 $ 695,979 $ 133,674 $ — $ 1,059,741 Carrying amount, January 3, 2021 $ 123,549 $ 341,376 $ 374,633 $ 41,086 $ 16,156 $ 896,800 (1) Included in disposals for fiscal 2021 are manufacturing equipment with a cost of $31.5 million (2020 - $106.8 million) and accumulated depreciation of $25.2 million (2020 - $84.2 million) that were determined to be unrepairable due to damages resulting from the two hurricanes which impacted the Company’s operations in Central America in November 2020. See note 17 (c) for additional information. Assets not yet utilized in operations include expenditures incurred to date for plant expansions which are still in process and equipment not yet placed into service as at the end of the reporting period. As at January 2, 2022, there were contractual purchase obligations outstanding of approximately $159.4 million for the acquisition of property, plant and equipment compared to $17.5 million as of January 3, 2021. |
RIGHT-OF-USE ASSETS AND LEASE O
RIGHT-OF-USE ASSETS AND LEASE OBLIGATIONS | 12 Months Ended |
Jan. 02, 2022 | |
Presentation of leases for lessee [abstract] | |
RIGHT-OF-USE ASSETS AND LEASE OBLIGATIONS | RIGHT-OF-USE ASSETS AND LEASE OBLIGATIONS: (a) Right-of-use assets: The following table presents the right-of-use assets for the Company: 2021 2020 Balance, beginning of fiscal year $ 59,445 $ 73,539 Additions 8,132 16,424 Additions through business acquisitions 43,539 — Write-downs, impairments, and accelerated depreciation (4,696) (15,862) Depreciation (note 21) (13,973) (14,656) Balance, end of fiscal year $ 92,447 $ 59,445 (b) Lease obligations: The Company’s leases are primarily for manufacturing, sales, distribution, and administrative facilities. The following table presents lease obligations recorded in the statement of financial position: January 2, 2022 January 3, 2021 Current $ 15,290 $ 15,884 Non-current 93,812 66,580 $ 109,102 $ 82,464 Leases of certain facilities contain extension or termination options exercisable by the Company before the end of the non-cancellable contract period. The Company has applied judgment to determine the lease term for the contracts with renewal and termination options and has included renewal and termination options in the measurement of lease obligations when it is reasonably certain to exercise the options. The Company reassesses whether it is reasonably certain to exercise the options if there is a significant event or a significant change in circumstances within its control which impacts the original assessments made. As at January 2, 2022, potential undiscounted future lease payments related to renewal options not included in the measurement of lease obligations are $45.8 million (January 3, 2021 - $55.1 million). The following table presents the undiscounted future minimum lease payments under non-cancellable leases (including short term leases) as at January 2, 2022: January 2, 2022 Less than one year $ 21,221 One to five years 50,585 More than five years 61,355 $ 133,161 For the year ended January 2, 2022, expenses relating to short-term leases and leases of low-value assets were $3.3 million (2020 - $3.8 million). For the year ended January 2, 2022, the total cash outflow for recognized lease obligations (including interest) was $24.1 million (2020 - $18.6 million), of which $21.5 million (2020 - $15.4 million) was included as part of cash outflows from financing activities. |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL | 12 Months Ended |
Jan. 02, 2022 | |
Intangible assets [Abstract] | |
INTANGIBLE ASSETS AND GOODWILL | INTANGIBLE ASSETS AND GOODWILL: Intangible assets: 2021 Customer contracts and customer relationships Trademarks License agreements Computer software Non-compete agreements Total Cost Balance, January 3, 2021 $ 224,489 $ 226,172 $ 72,796 $ 64,295 $ 1,790 $ 589,542 Additions — — — 3,635 — 3,635 Disposals — — — (773) — (773) Balance, January 2, 2022 $ 224,489 $ 226,172 $ 72,796 $ 67,157 $ 1,790 $ 592,404 Accumulated amortization Balance, January 3, 2021 $ 142,131 $ 46,351 $ 64,347 $ 45,022 $ 1,790 $ 299,641 Amortization 9,944 292 2,582 5,258 — 18,076 Disposals — — — (484) — (484) (Impairment reversal, net of write-downs) (3,943) (27,516) — — — (31,459) Balance, January 2, 2022 $ 148,132 $ 19,127 $ 66,929 $ 49,796 $ 1,790 $ 285,774 Carrying amount, January 2, 2022 $ 76,357 $ 207,045 $ 5,867 $ 17,361 $ — $ 306,630 2020 Customer contracts and customer relationships Trademarks License agreements Computer software Non-compete agreements Total Cost Balance, December 29, 2019 $ 224,489 $ 226,172 $ 72,750 $ 69,123 $ 1,790 $ 594,324 Additions — — 46 3,113 — 3,159 Disposals — — — (7,941) — (7,941) Balance, January 3, 2021 $ 224,489 $ 226,172 $ 72,796 $ 64,295 $ 1,790 $ 589,542 Accumulated amortization Balance, December 29, 2019 $ 101,844 $ 2,508 $ 61,415 $ 42,903 $ 1,790 $ 210,460 Amortization 10,670 700 2,932 6,104 — 20,406 Disposals — — — (3,985) — (3,985) Write-downs and impairments 29,617 43,143 — — — 72,760 Balance, January 3, 2021 $ 142,131 $ 46,351 $ 64,347 $ 45,022 $ 1,790 $ 299,641 Carrying amount, January 3, 2021 $ 82,358 $ 179,821 $ 8,449 $ 19,273 $ — $ 289,901 During the year ended January 2, 2022, the Company recorded an impairment reversal, net of write-downs of $31.5 million. The impairment reversal, net of write-downs includes a $55.6 million impairment reversal relating to intangible assets (both definite and indefinite life) acquired in previous business acquisitions, partially offset by a $24.1 million write-off of certain intangible assets relating to the Company's Hosiery CGU. The write-off of intangible assets includes a write-down of $10.4 million in trademarks and $13.7 million in customer relationships, that were assessed as having no future economic benefit. These asset write-offs relate to the Company’s plan to exit its sheer panty hose, tights, leggings, ladies shapewear, intimates, and accessories products. The carrying amount of internally-generated assets within computer software was $14.1 million as at January 2, 2022 ( January 3, 2021 - $16.1 million). Included in computer software as at January 2, 2022 is $3.6 million (January 3, 2021 - $1.9 million) of assets not yet utilized in operations. 11. INTANGIBLE ASSETS AND GOODWILL (continued): Goodwill: 2021 2020 Balance, beginning of fiscal year $ 206,636 $ 227,865 Goodwill acquired 77,179 — Impairment — (21,229) Balance, end of fiscal year $ 283,815 $ 206,636 Recoverability of cash-generating units: Goodwill acquired through business acquisitions and trademarks with indefinite useful lives have been allocated to the Company's CGUs as follows: January 2, 2022 January 3, 2021 Textile & Sewing: Goodwill $ 283,815 $ 206,636 Definite life intangible assets (excluding computer software) 23,430 27,869 Indefinite life intangible assets 93,400 93,400 $ 400,645 $ 327,905 Hosiery: Goodwill $ — $ — Definite life intangible assets (excluding computer software) 58,794 63,230 Indefinite life intangible assets 113,645 86,129 $ 172,439 $ 149,359 In assessing whether goodwill and indefinite life intangible assets are impaired, the carrying amounts of the CGUs (including goodwill and indefinite life intangible assets) are compared to their recoverable amounts. The recoverable amounts of CGUs are based on the higher of the value in use and fair value less costs of disposal. During the first quarter of fiscal 2020, due to the adverse impacts of the COVID-19 pandemic on global economic activity and enterprise values of companies worldwide, including its impact on the Company’s business and share price, the Company recorded an impairment charge for its hosiery CGU of $94 million, relating to goodwill and intangible assets acquired during previous sock and hosiery business acquisitions. The Company performed its annual impairment review for goodwill and indefinite life intangible assets as at January 2, 2022. The estimated recoverable amount for the Textile & Sewing CGU exceeded its carrying amounts and as a result, there was no impairment identified. The estimated recoverable amount for the Hosiery CGU was in excess of its carrying value resulting in an impairment reversal of $55.6 million, relating to intangible assets (both definite and indefinite life) acquired in previous business acquisitions. Recoverable amount for Textile & Sewing and Hosiery CGUs The Company determined the recoverable amounts of the Textile & Sewing and Hosiery CGUs based on the fair value less costs of disposal method. The fair values of the Textile & Sewing and Hosiery CGUs were based on a multiple applied to adjusted EBITDA (as defined in note 25) for the next year, which takes into account financial forecasts approved by senior management. The key assumptions for the fair value less costs of disposal method include estimated sales volumes, selling prices, gross margins, and SG&A expenses in determining forecasted adjusted EBITDA, as well as the multiple applied to forecasted adjusted EBITDA. The adjusted EBITDA multiple was obtained by using market comparables as a reference. The values assigned to the key assumptions represent management’s assessment of future trends and have been based on historical data from external and internal sources. 11. INTANGIBLE ASSETS AND GOODWILL (continued): Recoverability of cash-generating units (continued): Textile & Sewing CGU For the Textile & Sewing CGU, no reasonably possible change in the key assumptions used in determining the recoverable amount would result in any impairment of goodwill or indefinite life intangible assets. Hosiery CGU Based on the results of the impairment test performed on January 2, 2022, the recoverable amount of the CGU of $544.0 million (2020 - $273.5 million) is higher than the post impairment carrying value, and as such the Company recorded an impairment reversal of $55.6 million as at January 2, 2022, relating to the following intangible assets; $37.9 million in trademark impairment reversals and $17.7 million in customer relationships impairment reversals acquired in previous business acquisitions. The events and circumstances that led to this reversal include improved margins and forecasted earnings. The fair value of the Hosiery CGU was based on a multiple applied to the risk-adjusted forecasted adjusted EBITDA (see definition of adjusted EBITDA in note 25). The key assumptions used in the estimation of the recoverable amount for the Hosiery CGU are the risk-adjusted forecasted adjusted EBITDA for the next year and the adjusted EBITDA multiple of 10 (January 2, 2022 test) and 9 (January 3, 2021 test). The adjusted EBITDA multiple was obtained by using market comparables as a reference. The most significant assumptions that form part of the risk-adjusted forecasted adjusted EBITDA for the Hosiery CGU relate to estimated sales volumes, selling prices, input costs, and SG&A expenses. Management has identified that no reasonably possible change in forecasted adjusted EBITDA or adjusted EBITDA multiple would cause the carrying amount of the Hosiery CGU to exceed its recoverable amount as at January 2, 2022. The values assigned to the key assumptions represent management’s assessment of future trends and have been based on historical data from external and internal sources. |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Jan. 02, 2022 | |
Financial Instruments [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT: Effective interest rate (1) Principal amount Maturity date January 2, January 3, Revolving long-term bank credit facility, interest at variable U.S. LIBOR-based interest rate plus a spread ranging from 1% to 3% (2) n/a $ — $ — June 2026 Term loan, interest at variable U.S. LIBOR-based interest rate plus a spread ranging from 1% to 3%, payable monthly (3) 2.4% 300,000 300,000 June 2026 Term loan, interest at variable U.S. LIBOR-based interest rate plus a spread ranging from 1.7% to 3%, payable monthly (3) n/a — 400,000 April 2022 Notes payable, interest at fixed rate of 2.70%, payable semi-annually (4) 2.7% 100,000 100,000 August 2023 Notes payable, interest at variable U.S. LIBOR-based interest rate plus a spread of 1.53%, payable quarterly (4) 2.7% 50,000 50,000 August 2023 Notes payable, interest at fixed rate of 2.91%, payable semi-annually (4) 2.9% 100,000 100,000 August 2026 Notes payable, interest at variable U.S. LIBOR-based interest rate plus a spread of 1.57%, payable quarterly (4) 2.9% 50,000 50,000 August 2026 $ 600,000 $ 1,000,000 (1) Represents the annualized effective interest rate for the year ended January 2, 2022, including the cash impact of interest rate swaps, where applicable. (2) The Company’s committed unsecured revolving long-term bank credit facility of $1 billion provides for an annual extension which is subject to the approval of the lenders. The spread added to the U.S. LIBOR-based variable interest rate is a function of the total net debt to EBITDA ratio (as defined in the credit facility agreement and its amendments). In addition, an amount of $51.1 million (January 3, 2021 - $7.2 million) has been committed against this facility to cover various letters of credit. (3) The unsecured term loans are non-revolving and can be prepaid in whole or in part at any time with no penalties. The spread added to the U.S. LIBOR-based variable interest rate is a function of the total net debt to EBITDA ratio (as defined in the term loan agreements and its amendments). (4) The unsecured notes issued for a total aggregate principal amount of $300 million to accredited investors in the U.S. private placement market can be prepaid in whole or in part at any time, subject to the payment of a prepayment penalty as provided for in the Note Purchase Agreement. In March 2020, the Company amended its unsecured revolving long-term bank credit facility of $1 billion and its unsecured term loan of $300 million, in each case to extend the maturity dates from April 2024 to April 2025. On April 6, 2020, the Company entered into an unsecured two-year term loan agreement for a total principal amount of $400 million. Under the terms of the revolving long-term bank credit facility, both term loan facilities, and the notes, the Company was required to comply with certain covenants, including maintenance of financial ratios. In addition, as at January 3, 2021, the Company had an additional $60 million available under various undrawn overdraft facilities. On June 26, 2020, given the rapidly changing environment and level of uncertainty being created by the COVID-19 pandemic and the associated impact on current and future earnings, the Company amended its various loans and note agreements in order to modify its covenants to provide increased financial flexibility from March 30, 2020 to April 4, 2021. Upfront costs of $3.9 million incurred for the amendments were included in bank and other financial charges in fiscal 2020. On April 20, 2021, the Company fully repaid its $400 million unsecured two-year term loan which was due on April 6, 2022. In June 2021, the Company amended its unsecured revolving long-term bank credit facility of $1 billion and its unsecured term loan of $300 million to extend the maturity dates from April 2025 to June 2026. Under the terms of the revolving facility, term loan facility, and notes, the Company is required to comply with certain covenants, including maintenance of financial ratios. The Company was in compliance with all financial covenants at January 2, 2022 and during the covenant relief period. |
OTHER NON-CURRENT LIABILITIES
OTHER NON-CURRENT LIABILITIES | 12 Months Ended |
Jan. 02, 2022 | |
Subclassifications of assets, liabilities and equities [abstract] | |
OTHER NON-CURRENT LIABILITIES | OTHER NON-CURRENT LIABILITIES: January 2, 2022 January 3, 2021 Employee benefit obligation - Statutory severance and pre-notice (a) $ 42,931 $ 19,889 Employee benefit obligation - Defined contribution plan (b) 3,742 3,736 Provisions (c) 13,189 12,240 $ 59,862 $ 35,865 (a) Statutory severance and pre-notice obligations: 2021 2020 Obligation, beginning of fiscal year $ 19,889 $ 27,767 Service cost 13,942 16,785 Interest cost 6,562 7,305 Actuarial loss (gain) (1) 21,678 (12,142) Foreign exchange gain (179) (253) Benefits paid (18,961) (19,573) Obligation, end of fiscal year $ 42,931 $ 19,889 (1) The actuarial loss in fiscal 2021 is due to changes in the actuarial assumptions used to determine the statutory severance obligations. The actuarial gain in fiscal 2020 is due to reductions in headcount and changes in the actuarial assumptions used to determine the statutory severance obligations. Significant assumptions for the calculation of the statutory severance obligations included the use of a discount rate ranging between 8.5% and 9.2% (2020 - between 9.0% and 11.5%) and rates of compensation increases between 7.75% and 10.5% (2020 - 7.5%). A 1% increase in the discount rates would result in a corresponding decrease in the statutory severance obligations of $ 6.6 million, and a 1% decrease in the discount rates would result in a corresponding increase in the statutory severance obligations of $ 8.2 million. A 1% increase in the rates of compensation increases used would result in a corresponding increase in the statutory severance obligations of $ 8.4 million, and a 1% decrease in the rates of compensation increases used would result in a corresponding decrease in the statutory severance obligations of $ 6.9 million. The cumulative amount of actuarial losses recognized in other comprehensive income as at January 2, 2022 was $34.6 million (January 3, 2021 - $12.9 million) which have been reclassified to retained earnings in the period in which they were recognized. (b) Defined contribution plan: During fiscal 2021, defined contribution expenses were $5.3 million (2020 - $4.5 million). (c) Provisions: The following table presents the provisions for decommissioning and site restoration costs of the Company: 2021 2020 Balance, beginning of fiscal year $ 12,240 $ 10,790 Changes in estimates made during the fiscal year 796 1,208 Accretion of interest 153 242 Balance, end of fiscal year $ 13,189 $ 12,240 Provisions as at January 2, 2022 include estimated future costs of decommissioning and site restoration for certain assets located at the Company’s textile and sock facilities for which the timing of settlement is uncertain, but has been estimated to be in excess of twenty years. |
EQUITY
EQUITY | 12 Months Ended |
Jan. 02, 2022 | |
Share Capital, Reserves And Other Equity Interest [Abstract] | |
EQUITY | EQUITY: (a) Shareholder rights plan: The Company has a shareholder rights plan which provides the Board of Directors and the shareholders with additional time to assess any unsolicited take-over bid for the Company and, where appropriate, pursue other alternatives for maximizing shareholder value. (b) Accumulated other comprehensive income ("AOCI"): Accumulated other comprehensive income includes the changes in the fair value of the effective portion of qualifying cash flow hedging instruments outstanding at the end of the fiscal year. (c) Share capital: Authorized: Common shares, authorized without limit as to number and without par value. First preferred shares, without limit as to number and without par value, issuable in series and non-voting. Second preferred shares, without limit as to number and without par value, issuable in series and non-voting. As at January 2, 2022 and January 3, 2021, none of the first and second preferred shares were issued. Issued: As at January 2, 2022, there were 192,267,273 common shares (January 3, 2021 - 198,407,222) issued and outstanding, which are net of 8,759 common shares (January 3, 2021 - 2,897) that have been purchased and are held in trust as described in note 14(e). (d) Normal course issuer bid ("NCIB"): On February 19, 2020, the Company received approval from the Toronto Stock Exchange (TSX) to renew its NCIB to purchase for cancellation a maximum of 9,939,154 common shares, representing approximately 5% of the Company’s issued and outstanding common shares. During the year ended January 3, 2021, the Company repurchased for cancellation a total of 843,038 common shares under its NCIB programs for a total cost of $23.2 million. Of the total cost of $23.2 million, $0.7 million was charged to share capital and $22.5 million was charged to retained earnings. On August 4, 2021, the Company received approval from the TSX to renew its NCIB commencing on August 9, 2021 to purchase for cancellation up to 9,926,177 common shares, representing approximately 5% of the Company’s issued and outstanding common shares. During the year ended January 2, 2022, the Company repurchased for cancellation a total of 6,475,375 common shares under its NCIB programs for a total cost of $250.4 million. Of the total cost of $250.4 million, $6.2 million was charged to share capital and $244.3 million was charged to retained earnings. Of the 6,475,375 common shares purchased for cancellation, the settlement of 125,073 common shares occurred post quarter-end, for which $5.3 million is recorded in accounts payable and accrued liabilities as at January 2, 2022. On February 22, 2022, the Company received approval from the Toronto Stock Exchange (TSX) to amend its current NCIB, which commenced on August 9, 2021, in order to increase the maximum number of common shares that may be repurchased from 9,926,177, or 5% of the Company’s issued and outstanding common shares as at July 31, 2021 (the reference date for the NCIB), to 19,477,744 common shares, representing 10% of the public float as at July 31, 2021. No other terms of the NCIB have been amended. 14. EQUITY (continued): (e) Common shares purchased as settlement for non-Treasury RSUs: The Company has established a trust for the purpose of settling the vesting of non-Treasury RSUs. For non-Treasury RSUs that are to be settled in common shares in lieu of cash, the Company directs the trustee to purchase common shares of the Company on the open market to be held in trust for and on behalf of the holders of non-Treasury RSUs until they are delivered for settlement, when the non-Treasury RSUs vest. For accounting purposes, the common shares are considered as held in treasury, and recorded as a temporary reduction of outstanding common shares and share capital. Upon delivery of the common shares for settlement of the non-Treasury RSUs, the number of common shares outstanding is increased, and the amount in contributed surplus is transferred to share capital. As at January 2, 2022, a total of 8,759 common shares representing $0.04 million purchased as settlement for non-Treasury RSUs were considered as held in treasury and recorded as a temporary reduction of outstanding common shares and share capital (January 3, 2021 - 2,897 common shares representing $0.2 million). (f) Contributed surplus: The contributed surplus account is used to record the accumulated compensation expense related to equity-settled share-based compensation transactions. Upon the exercise of stock options, the vesting of Treasury RSUs, and the delivery of common shares for settlement of vesting non-Treasury RSUs or SARs, the corresponding amounts previously credited to contributed surplus are transferred to share capital, except for the portion of the share-based payment that the Company settles on a net basis when the Company has an obligation under tax laws to withhold an amount for an employee’s tax obligation, in which case the corresponding amounts previously credited to contributed surplus are transferred to accounts payable and accrued liabilities. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended |
Jan. 02, 2022 | |
Financial Instruments [Abstract] | |
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS: (a) Financial instruments - carrying amounts and fair values: The carrying amounts and fair values of financial assets and liabilities included in the consolidated statements of financial position are as follows: January 2, 2022 January 3, 2021 Financial assets Amortized cost: Cash and cash equivalents $ 179,246 $ 505,264 Trade accounts receivable 329,967 196,480 Financial assets included in prepaid expenses, deposits and other current assets 69,995 88,781 Long-term non-trade receivables included in other non-current assets 390 1,435 Derivative financial assets included in prepaid expenses, deposits and other current assets 62,758 4,947 Financial liabilities Amortized cost: Accounts payable and accrued liabilities (1) $ 436,073 $ 326,069 Long-term debt - bearing interest at variable rates 400,000 800,000 Long-term debt - bearing interest at fixed rates (2) 200,000 200,000 Derivative financial liabilities included in accounts payable and accrued liabilities 4,328 17,653 1) Accounts payable and accrued liabilities include $18.1 million (January 3, 2021 - $27.6 million) under supply-chain financing arrangements (reverse factoring) with a financial institution, whereby receivables due from the Company to certain suppliers can be collected by the suppliers from a financial institution before their original due date. These balances are classified as accounts payable and accrued liabilities and the related payments as cash flows from operating activities, given the principal business purpose of the arrangement is to provide funding to the supplier and not the Company, the arrangement does not significantly extend the payment terms beyond the normal terms agreed with other suppliers, and no additional deferral or special guarantees to secure the payments are included in the arrangement. Accounts payable and accrued liabilities also include balances payable of $48.8 million (January 3, 2021 - $20.0 million) resulting mainly from a one-week timing difference between the collection of sold receivables and the weekly remittance to our bank counterparty under our receivables purchase agreement that is disclosed in note 7 to these consolidated financial statements. 2) The fair value of the long-term debt bearing interest at fixed rates was $212.2 million as at January 2, 2022 (January 3, 2021 - $221.3 million). 15. FINANCIAL INSTRUMENTS (continued): (a) Financial instruments - carrying amounts and fair values (continued): Short-term financial assets and liabilities The Company has determined that the fair value of its short-term financial assets and liabilities approximates their respective carrying amounts as at the reporting dates due to the short-term maturities of these instruments, as they bear variable interest-rates or because the terms and conditions are comparable to current market terms and conditions for similar items. Non-current assets and long-term debt bearing interest at variable rates The fair values of the long-term non-trade receivables included in other non-current assets and the Company’s long-term debt bearing interest at variable rates also approximate their respective carrying amounts because the interest rates applied to measure their carrying amounts approximate current market interest rates. Long-term debt bearing interest at fixed rates The fair value of the long-term debt bearing interest at fixed rates is determined using the discounted future cash flows method and at discount rates based on yield to maturities for similar issuances. The fair value of the long-term debt bearing interest at fixed rates was measured using Level 2 inputs in the fair value hierarchy. In determining the fair value of the long-term debt bearing interest at fixed rates, the Company takes into account its own credit risk and the credit risk of the counterparties. Derivatives Derivative financial instruments are designated as effective hedging instruments and consist of foreign exchange and commodity forward, option, and swap contracts, as well as floating-to-fixed interest rate swaps to fix the variable interest rates on a designated portion of borrowings under the term loan and unsecured notes. The fair value of the forward contracts is measured using a generally accepted valuation technique which is the discounted value of the difference between the contract’s value at maturity based on the rate set out in the contract and the contract’s value at maturity based on the rate that the counterparty would use if it were to renegotiate the same contract terms at the measurement date under current conditions. The fair value of the option contracts is measured using option pricing models that utilize a variety of inputs that are a combination of quoted prices and market-corroborated inputs, including volatility estimates and option adjusted credit spreads. The fair value of the interest rate swaps is determined based on market data, by measuring the difference between the fixed contracted rate and the forward curve for the applicable floating interest rates. The Company also has a total return swap (“TRS”) outstanding that is intended to reduce the variability of net earnings associated with deferred share units, which are settled in cash. The TRS is not designated as a hedging instrument and, therefore, the fair value adjustment at the end of each reporting period is recognized in selling, general and administrative expenses. The fair value of the TRS is measured by reference to the market price of the Company’s common shares, at each reporting date. The TRS has a one Derivative financial instruments were measured using Level 2 inputs in the fair value hierarchy. In determining the fair value of derivative financial instruments the Company takes into account its own credit risk and the credit risk of the counterparties. 15. FINANCIAL INSTRUMENTS (continued): (b) Derivative financial instruments - hedge accounting: During fiscal 2021 and 2020, the Company entered into foreign exchange and commodity forward, option, and swap contracts in order to minimize the exposure of forecasted cash inflows and outflows in currencies other than the U.S. dollar and to manage its exposure to movements in commodity prices, as well as floating-to-fixed interest rate swaps to fix the variable interest rates on a designated portion of borrowings under the term loan and unsecured notes. The forward foreign exchange contracts were designated as cash flow hedges and qualified for hedge accounting. The forward foreign exchange contracts outstanding as at January 2, 2022 and January 3, 2021 consisted primarily of contracts to reduce the exposure to fluctuations in Canadian dollars, Euros, Australian dollars, Pounds sterling, and Mexican pesos against the U.S. dollar. The commodity forward, option, and swap contracts were designated as cash flow hedges and qualified for hedge accounting. The commodity contracts outstanding as at January 2, 2022 and January 3, 2021 consisted primarily of forward, collar, and swap contracts to reduce the exposure to movements in commodity prices. The floating-to-fixed interest rate swaps were designated as cash flow hedges and qualified for hedge accounting. The floating-to-fixed interest rate swaps contracts outstanding as at January 2, 2022 and January 3, 2021 served to fix the variable interest rates on the designated interest payments of a portion of the Company's long-term debt. The following table summarizes the Company’s commitments to buy and sell foreign currencies (cash flow hedges) as at January 2, 2022: Carrying and fair value Maturity Notional foreign Average Notional Prepaid expenses, Accounts currency amount exchange U.S. $ deposits and other payable and 0 to 12 equivalent rate equivalent current assets accrued liabilities months Forward foreign exchange contracts: Sell GBP/Buy USD 26,752 1.3769 $ 36,834 $ 808 $ (54) $ 754 Sell EUR/Buy USD 29,390 1.1916 35,020 1,592 — 1,592 Sell CAD/Buy USD 39,274 0.8015 31,478 665 — 665 Buy CAD/Sell USD 31,016 0.7840 24,316 92 (88) 4 Sell AUD/Buy USD 8,885 0.7427 6,599 161 (13) 148 Sell MXN/Buy USD 151,791 0.0480 7,279 39 (11) 28 $ 141,526 $ 3,357 $ (166) $ 3,191 The following table summarizes the Company’s commitments to buy and sell foreign currencies (cash flow hedges) as at January 3, 2021: Carrying and fair value Maturity Notional foreign Average Notional Prepaid expenses, Accounts currency amount exchange U.S. $ deposits and other payable and 0 to 12 equivalent rate equivalent current assets accrued liabilities months Forward foreign exchange contracts: Sell GBP/Buy USD 33,069 1.3090 $ 43,287 $ — $ (1,784) $ (1,784) Sell EUR/Buy USD 33,571 1.1816 39,668 — (1,736) (1,736) Sell CAD/Buy USD 45,591 0.7594 34,623 — (1,111) (1,111) Buy CAD/Sell USD 21,669 0.7077 15,336 1,626 — 1,626 Sell AUD/Buy USD 7,387 0.7218 5,332 — (346) (346) Sell MXN/Buy USD 168,727 0.0455 7,683 28 (693) (665) $ 145,929 $ 1,654 $ (5,670) $ (4,016) 15. FINANCIAL INSTRUMENTS (continued): (b) Derivative financial instruments - hedge accounting (continued): The following table summarizes the Company's commodity contracts outstanding (cash flow hedges) as at January 2, 2022: Carrying and fair value Maturity Prepaid expenses, Accounts Type of deposits and other payable and 0 to 12 commodity Notional amount (1) current assets accrued liabilities months Forward contracts Cotton 251.0 million pounds $ 56,419 $ — $ 56,419 Swap & option contracts Energy 5.7 million gallons 1,660 (102) 1,558 $ 58,079 $ (102) $ 57,977 (1) Notional amounts are not in thousands. The following table summarizes the Company's commodity contracts outstanding (cash flow hedges) as at January 3, 2021: Carrying and fair value Maturity Prepaid expenses, Accounts Type of deposits and other payable and 0 to 12 commodity Notional amount (1) current assets accrued liabilities months Forward contracts Cotton 16.2 million pounds $ 1,582 $ — $ 1,582 Swap contracts Synthetic fibres 3.9 million pounds — (781) (781) Swap & option contracts Energy 6.4 million gallons 1,300 (258) 1,042 $ 2,882 $ (1,039) $ 1,843 (1) Notional amounts are not in thousands. 15. FINANCIAL INSTRUMENTS (continued): (b) Derivative financial instruments - hedge accounting (continued): The following table summarizes the Company’s floating-to-fixed interest rate swap contracts outstanding (cash flow hedges) as at January 2, 2022: Carrying and fair value Notional Prepaid expenses, Accounts amount of Maturity Fixed Floating deposits and other payable and borrowings date Pay / Receive rate rate current assets accrued liabilities Term Loan (1) $ 75,000 April 30, 2023 Pay fixed rate / receive floating rate 2.85 % US LIBOR $ — $ (2,272) 50,000 April 30, 2024 Pay fixed rate / receive floating rate 1.51 % US LIBOR 32 (744) 25,000 April 30, 2025 Pay fixed rate / receive floating rate 1.06 % US LIBOR 167 (154) 50,000 April 30, 2025 Pay fixed rate / receive floating rate 0.78 % US LIBOR 624 — 25,000 June 30, 2026 Pay fixed rate / receive floating rate 1.59 % US LIBOR — (22) 25,000 June 30, 2026 Pay fixed rate / receive floating rate 1.23 % US LIBOR 171 — Unsecured Notes 50,000 August 25, 2023 Pay fixed rate / receive floating rate 1.18 % US LIBOR — (380) 50,000 August 25, 2026 Pay fixed rate / receive floating rate 1.34 % US LIBOR 328 (454) $ 1,322 $ (4,026) (1) The notional amounts for the interest rate swap contracts maturing in 2025 and 2026 are extensions to the $100 million interest rate swap contracts originally entered into related to the $300 million term loan. 15. FINANCIAL INSTRUMENTS (continued): (b) Derivative financial instruments - hedge accounting (continued): The following table summarizes the Company’s floating-to-fixed interest rate swap contracts outstanding (cash flow hedges) as at January 3, 2021: Carrying and fair value Notional Prepaid expenses, Accounts amount of Maturity Fixed Floating deposits and other payable and borrowings date Pay / Receive rate rate current assets accrued liabilities Term Loan (1) $ 150,000 June 17, 2021 Pay fixed rate / receive floating rate 0.96 % US LIBOR $ — $ (630) 25,000 April 6, 2022 Pay fixed rate / receive floating rate 0.27 % US LIBOR — (48) 75,000 April 30, 2023 Pay fixed rate / receive floating rate 2.85 % US LIBOR — (3,800) 50,000 April 30, 2024 Pay fixed rate / receive floating rate 1.51 % US LIBOR — (1,886) 25,000 April 30, 2025 Pay fixed rate / receive floating rate 1.06 % US LIBOR — (755) 25,000 May 30, 2025 Pay fixed rate / receive floating rate 0.47 % US LIBOR — (30) Unsecured Notes 50,000 August 25, 2023 Pay fixed rate / receive floating rate 1.18 % US LIBOR — (1,330) 50,000 August 25, 2026 Pay fixed rate / receive floating rate 1.34 % US LIBOR — (2,465) $ — $ (10,944) (1) The notional amounts for the interest rate swap contracts maturing in 2023, 2024, and 2025 were extensions to the $150 million interest rate swap contracts originally entered into related to the $300 million term loan. The following table summarizes the Company’s hedged items as at January 2, 2022: Change in Carrying amount of value used for Cash flow the hedged item calculating hedge hedge reserve Assets Liabilities ineffectiveness (AOCI) Cash flow hedges: Foreign currency risk: Forecast sales $ — $ — $ 2,554 $ (2,554) Forecast expenses — — 4 (4) Commodity risk: Forecast purchases — — 64,813 (64,813) Interest rate risk: Forecast interest payments — — (2,562) 2,562 $ — $ — $ 64,809 $ (64,809) No ineffectiveness was recognized in net earnings as the change in value of the hedging instrument used for calculating ineffectiveness was the same or smaller as the change in value of the hedged items used for calculating the ineffectiveness. 15. FINANCIAL INSTRUMENTS (continued): (b) Derivative financial instruments - hedge accounting (continued): The following table summarizes the Company’s hedged items as at January 3, 2021: Change in Carrying amount of value used for Cash flow the hedged item calculating hedge hedge reserve Assets Liabilities ineffectiveness (AOCI) Cash flow hedges: Foreign currency risk: Forecast sales $ — $ — $ (4,104) $ 4,104 Forecast expenses — — 1,626 (1,626) Commodity risk: Forecast purchases — — 4,205 (4,205) Interest rate risk: Forecast interest payments — — (10,765) 10,765 $ — $ — $ (9,038) $ 9,038 No ineffectiveness was recognized in net earnings as the change in value of the hedging instrument used for calculating ineffectiveness was the same or smaller as the change in value of the hedged items used for calculating the ineffectiveness. (c) Financial expenses, net: 2021 2020 Interest expense on financial liabilities recorded at amortized cost (1) $ 14,923 $ 30,205 Bank and other financial charges (2) 8,823 14,627 Interest accretion on discounted lease obligations 2,650 3,227 Interest accretion on discounted provisions 153 242 Foreign exchange loss 782 229 $ 27,331 $ 48,530 (1) Net of capitalized borrowing costs of $1.6 million (2020 - $1.6 million). (2) Fiscal 2020 includes upfront costs of $3.9 million for the June 2020 amendments of the loans and notes agreements (note 12). 15. FINANCIAL INSTRUMENTS (continued): (d) Hedging components of other comprehensive income (“OCI”): 2021 2020 Net gain (loss) on derivatives designated as cash flow hedges: Foreign currency risk $ 3,599 $ 502 Commodity price risk 83,130 (12,699) Interest rate risk 8,203 (12,381) Income taxes (36) (5) Amounts reclassified from OCI to inventory, related to commodity (22,515) 9,837 Amounts reclassified from OCI to net earnings, related to foreign currency risk, interest rate risk, and commodity risk, and included in: Net sales 3,326 (242) Cost of sales — 8,483 Selling, general and administrative expenses (1,992) 331 Financial expenses, net 146 (2,358) Income taxes (14) 29 Cash flow hedging gain (loss) $ 73,847 $ (8,503) The change in the time value element of option and swap contracts designated as cash flow hedges to reduce the exposure in movements of commodity prices was not significant for the years ended January 2, 2022 and January 3, 2021. The change in the forward element of derivatives designated as cash flow hedges to reduce foreign currency risk was not significant for the years ended January 2, 2022 and January 3, 2021. Approximately $64.1 million of net gains presented in accumulated other comprehensive income as at January 2, 2022 are expected to be reclassified to inventory or net earnings within the next twelve months. During fiscal 2020, the Company determined that it no longer met the criteria for hedge accounting for certain commodity forward, option, and swap contracts and certain forward foreign exchange contracts (collectively the "hedging instruments") as the commodity purchases and foreign currency sales which the hedging instruments were respectively hedging, were no longer expected to occur due to economic conditions resulting from the COVID-19 pandemic. Changes in the fair value of such commodity forward, option, and swap contracts and forward foreign exchange contracts resulted in a net loss of $9.0 million, which were transferred out of accumulated other comprehensive income and recognized immediately in net earnings during the second quarter of fiscal 2020. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Jan. 02, 2022 | |
Share-based Payment Arrangements [Abstract] | |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION: The Company’s Long-Term Incentive Plan (the "LTIP") includes stock options, stock appreciation rights ('SARs'), and restricted share units. The LTIP allows the Board of Directors to grant stock options, SARs, dilutive restricted share units ("Treasury RSUs"), and non-dilutive restricted share units ("non-Treasury RSUs") to officers and other key employees of the Company and its subsidiaries. The number of common shares that are issuable pursuant to the exercise of stock options and the vesting of Treasury RSUs for the LTIP is fixed at 12,000,632. As at January 2, 2022, 132,596 common shares remained authorized for future issuance under this plan. The exercise price payable for each common share covered by a stock option or SARs is determined by the Board of Directors at the date of the grant, but may not be less than the closing price of the common shares of the Company on the trading day immediately preceding the effective date of the grant. Most stock options vest equally beginning on the second, third, fourth, and fifth anniversary of the grant date. Stock options granted in fiscal 2020 all vest on the third anniversary of the grant date, subject to performance vesting conditions in some cases. SARs granted in fiscal 2020 vest on the third anniversary of the grant date, and all are subject to performance vesting conditions. Holders of Treasury RSUs and non-Treasury RSUs are entitled to dividends declared by the Company which are recognized in the form of additional equity awards equivalent in value to the dividends paid on common shares. The vesting conditions of the additional equity awards are subject to the same performance objectives and other terms and conditions as the underlying equity awards. The additional awards related to outstanding Treasury RSUs and non-Treasury RSUs expected to be settled in common shares are credited to contributed surplus when the dividends are declared. (a) Stock options: Outstanding stock options were as follows: Stock options issued in Canadian dollars and to be exercised on the TSX: Number Weighted exercise price (CA$) Stock options outstanding, December 29, 2019 1,550 $ 35.65 Changes in outstanding stock options: Exercised (87) 24.22 Stock options outstanding, January 3, 2021 1,463 36.33 Changes in outstanding stock options: Exercised (227) 33.48 Stock options outstanding, January 2, 2022 1,236 $ 36.85 Stock options issued in U.S. dollars and to be exercised on the NYSE: Number Weighted exercise price (US$) Stock options outstanding, December 29, 2019 669 $ 29.01 Changes in outstanding stock options: Granted 1,387 26.43 Stock options outstanding, January 3, 2021 2,056 27.27 Changes in outstanding stock options: Forfeited (68) 29.01 Stock options outstanding, January 2, 2022 1,988 $ 27.21 16. SHARE-BASED COMPENSATION (continued): (a) Stock options (continued): As at January 2, 2022, 1,235,845 outstanding options issued in Canadian dollars to be exercised on the TSX were exercisable at the weighted average exercise price of CA$36.85 (January 3, 2021 - 1,304,338 options at CA$36.73), and 433,962 outstanding options issued in U.S. dollars and to be exercised on the NYSE, were exercisable at the weighted average exercise price of US$29.01 (January 3, 2021 - 334,448 options at US$29.01). For stock options exercised during fiscal 2021, the weighted average share price at the date of exercise on the TSX was CA$48.12 (2020 - CA$30.48), and the weighted average share price at the date of exercise on the NYSE was US$40.58. Based on the Black-Scholes option pricing model, the grant date weighted average fair value of options granted during 2020 was $5.09. The following table summarizes the average values for the assumptions used in the Black-Scholes option pricing model for the stock option grants for fiscal 2020: 2020 Exercise price US$26.43 Risk-free interest rate 0.39% Expected volatility 36.47% Expected life 5 years Expected dividend yield 2.57% No new grants during fiscal 2021. The following table summarizes information about stock options issued and outstanding and exercisable at January 2, 2022: Options issued and outstanding Options exercisable Exercise prices Number Remaining contractual life (yrs) Number CA$30.46 43 0 43 CA$33.01 463 2 463 CA$38.01 447 1 447 CA$42.27 283 4 283 1,236 1,236 US$20.77 537 6 — US$29.01 601 3 434 US$30.00 850 6 — 3,224 1,670 The compensation expense related to stock options included in operating income for fiscal 2021 was $2.8 million (2020 - $1.8 million), and the counterpart has been recorded as contributed surplus. When the underlying shares are issued to the employees, the amounts previously credited to contributed surplus are transferred to share capital. 16. SHARE-BASED COMPENSATION (continued): (b) Stock appreciation rights ("SARs"): During the year ended January 3, 2021, 824,406 SARs were granted at the weighted average exercise price of US$30 and remained outstanding with a remaining contractual life of 2 years as at January 2, 2022. Based on the Black-Scholes option pricing model, the grant date weighted average fair value of options granted during 2020 was $5.60. None of the outstanding SARs were exercisable as at January 2, 2022. The compensation expense related to SARs included in operating income for fiscal 2021 was $1.5 million (2020 - $0.1 million), and the counterpart has been recorded as contributed surplus. The following table summarizes the assumptions used in the option pricing model for the SARs granted in fiscal 2020: 2020 Exercise price US$30 Risk-free interest rate 0.22% Expected volatility 43.86% Expected life 3 years Expected dividend yield 2.32% No new grants during fiscal 2021. (c) Restricted share units: A Treasury RSU represents the right of an individual to receive one common share on the vesting date without any monetary consideration being paid to the Company. All Treasury RSUs awarded to date vest within a five-year vesting period. The vesting of at least 50% of each Treasury RSU grant is contingent on the achievement of performance conditions that are based on the Company’s average return on assets performance for the period as compared to the S&P/TSX Capped Consumer Discretionary Index, excluding income trusts. Outstanding Treasury RSUs were as follows: Number Weighted average fair value per unit Treasury RSUs outstanding, December 29, 2019 114 $ 31.42 Changes in outstanding Treasury RSUs: Granted for dividends declared 1 12.58 Settled through the issuance of common shares (72) 31.65 Treasury RSUs outstanding, January 3, 2021 43 30.47 Changes in outstanding Treasury RSUs: Granted 5 36.45 Granted for dividends declared 1 37.93 Settled through the issuance of common shares (5) 29.68 Forfeited (21) 29.95 Treasury RSUs outstanding, January 2, 2022 23 $ 32.55 As at January 2, 2022 and January 3, 2021, none of the outstanding Treasury RSUs were vested. The compensation expense related to Treasury RSUs included in operating income for fiscal 2021 was a recovery of $0.2 million (2020 - $0.6 million expense), and the counterpart has been recorded as contributed surplus. When the underlying shares are issued to the employees, the amounts previously credited to contributed surplus are transferred to share capital. 16. SHARE-BASED COMPENSATION (continued): (c) Restricted share units (continued): Outstanding non-Treasury RSUs were as follows: Number Weighted average fair value per unit Non-Treasury RSUs outstanding, December 29, 2019 1,422 $ 31.42 Changes in outstanding non-Treasury RSUs: Granted 967 25.47 Granted for dividends declared 25 12.58 Settled - common shares (128) 29.06 Settled - payment of withholding taxes (67) 29.16 Forfeited (342) 25.70 Non-Treasury RSUs outstanding, January 3, 2021 1,877 29.38 Changes in outstanding non-Treasury RSUs: Granted 733 30.38 Granted for dividends declared 25 37.69 Settled - common shares (127) 25.14 Settled - payment of withholding taxes (70) 25.48 Forfeited (492) 32.46 Non-Treasury RSUs outstanding, January 2, 2022 1,946 $ 29.50 Non-Treasury RSUs have the same features as Treasury RSUs, except that their vesting period is a maximum of three years and they can be settled in cash based on the Company’s share price on the vesting date, or through the delivery of common shares purchased on the open market, at the Company's option. Non-Treasury RSUs are settled in common shares purchased on the open market, and to the extent that the Company has an obligation under tax laws to withhold an amount for an employee’s tax obligation associated with the share-based payment the Company settles non-Treasury RSUs on a net basis. Most of the outstanding non-Treasury RSUs awarded to executive officers have vesting conditions that are dependent upon the attainment of strategic performance objectives which are set based on the Company’s long-term strategic plan. A portion of non-Treasury RSU awards which vested in fiscal 2020 were dependent upon the financial performance of the Company relative to a benchmark group of Canadian publicly listed companies. In addition, up to two times the actual number of non-Treasury RSUs awarded can vest if exceptional financial performance is achieved. As at January 2, 2022 and January 3, 2021, none of the outstanding non-Treasury RSUs were vested. The compensation cost related to non-Treasury RSUs included in operating income for fiscal 2021 was an expense of $33.3 million (2020 - $0.5 million recovery), and the counterpart has been recorded as contributed surplus. When the underlying common shares are delivered to employees for settlement upon vesting, the amounts previously credited to contributed surplus are transferred to share capital. 16. SHARE-BASED COMPENSATION (continued): (d) Deferred share unit plan: The Company has a deferred share unit plan for independent members of the Company’s Board of Directors who must receive at least 50% of their annual board retainers in the form of deferred share units ("DSUs"). The value of these DSUs is based on the Company’s share price at the time of payment of the retainers or fees. Holders of deferred share units are entitled to dividends declared by the Company which are recognized in the form of additional awards equivalent in value to the dividends paid on common shares. DSUs granted under the plan will be redeemable and the value thereof payable in cash only after the director ceases to act as a director of the Company. As at January 2, 2022, there were 313,271 (January 3, 2021 - 301,077) DSUs outstanding at a value of $13.3 million (January 3, 2021 - $8.4 million). This amount is included in accounts payable and accrued liabilities based on a fair value per deferred share unit of $42.39 (January 3, 2021 - $28.01). The DSU obligation is adjusted each quarter based on the market value of the Company’s common shares. The Company includes the cost of the DSU plan in selling, general and administrative expenses, which for fiscal 2021 was $2.5 million (2020 - $1.8 million). Changes in outstanding DSUs were as follows: 2021 2020 DSUs outstanding, beginning of fiscal year 301 235 Granted 58 90 Granted for dividends declared 4 2 Redeemed (50) (26) DSUs outstanding, end of fiscal year 313 301 (e) Employee share purchase plans: The Company has employee share purchase plans which allow eligible employees to authorize payroll deductions of up to 10% of their salary to purchase common shares of the Company at a price of 90% of the then current share price as defined in the plans from Treasury. Employees purchasing shares under the plans subsequent to January 1, 2008 must hold the shares for a minimum of two years. The Company has reserved 5,000,000 common shares for issuance under the plans. As at January 2, 2022, 4,479,452 common shares remained authorized for future issuance under the plans. Included as compensation costs in selling, general and administrative expenses is $0.1 million (2020 - $0.1 million) relating to the employee share purchase plans. |
SUPPLEMENTARY INFORMATION RELAT
SUPPLEMENTARY INFORMATION RELATING TO THE NATURE OF EXPENSES | 12 Months Ended |
Jan. 02, 2022 | |
Analysis of income and expense [abstract] | |
SUPPLEMENTARY INFORMATION RELATING TO THE NATURE OF EXPENSES | SUPPLEMENTARY INFORMATION RELATING TO THE NATURE OF EXPENSES: (a) Selling, general and administrative expenses: 2021 2020 Selling expenses $ 68,591 $ 76,327 Administrative expenses 147,260 101,492 Distribution expenses 98,320 94,487 $ 314,171 $ 272,306 (b) Employee benefit expenses: 2021 2020 Salaries, wages and other short-term employee benefits $ 501,036 $ 423,335 Share-based payments 37,660 1,954 Post-employment benefits 28,085 44,645 $ 566,781 $ 469,934 17. SUPPLEMENTARY INFORMATION RELATING TO THE NATURE OF EXPENSES (continued): (c) Cost of sales: Included in cost of sales for the year ended January 2, 2022 are the following items: • A reduction of cost of sales related to pandemic government assistance for users of U.S. cotton of $18.3 million. • Net insurance gain of $46.0 million, related to the two hurricanes which occurred in Central America in November 2020. The net insurance gain reflected costs of $54.7 million, (mainly attributable to equipment repairs, salary and benefits continuation for idle employees, and other costs and charges), which were more than offset by related accrued insurance recoveries of $100.7 million. The insurance gains primarily relate to accrued insurance recoveries at replacement cost value for damaged equipment in excess of the write-off of the net book value of property plant and equipment. Since November 2020, the Company has recognized $212.8 million of accrued insurance recoveries, of which $200.0 million has been received as an advance ($50.0 million in December 2020, $50.0 million in March 2021, $50.0 million in June 2021 and $50.0 million in September 2021), of which receipts of $46.4 million are included in cash flow from operating activities and $103.6 million included in cash flows from investing activities as at January 2, 2022. As at January 2, 2022, $12.8 million of insurance recoveries receivable are recorded in prepaid expenses, deposits and other current assets in the consolidated statement of financial position. The Company recognizes insurance recoveries for items that it has an unconditional contractual right to receive. The Company expects to recognize additional insurance recoveries as the insurance claim process progresses. • Charges of $4.2 million related to the Company's strategic initiatives to significantly reduce its product line SKU count as described in note 8. • A write-down of production equipment and other assets relating to discontinued SKUs of $4.6 million. Included in cost of sales for the year ended January 3, 2021 are the following items: • $108.4 million of manufacturing costs charged directly to cost of sales during the first nine months of the fiscal year as a result of low production levels due to the temporary suspension of production at most of our manufacturing facilities starting in mid-March 2020 resulting from the COVID-19 pandemic. These manufacturing costs consist mainly of salary and benefits continuation for suspended employees as a result of suspended production, severance for terminated employees, and unabsorbed salary, benefits, and overhead costs, including depreciation. • $108.1 million of write-downs of inventory to net realizable value as a result of product line reductions and the decline in the net realizable value of certain inventories due to current market conditions as described in note 8. • $11.3 million for excess commodity contracts with merchants that no longer met the own-use exemption based on a reduction of physical cotton consumption in line with reduced production requirements. • $8.4 million transfer from accumulated other comprehensive income to cost of sales for certain commodity forward, option, and swap contracts that no longer met the criteria for hedge accounting as the commodity purchases which the hedging instruments were respectively hedging were no longer expected to occur due to reduced production requirements. • Net insurance gain of $9.6 million related to the two hurricanes which impacted the Company’s operations in Central America in November 2020. The net insurance gain reflected costs of $101.4 million, (mainly attributable to equipment repairs, salary and benefits continuation for idle employees, and other costs and charges), which were more than offset by related accrued insurance recoveries of $111.0 million (of which $50.0 million was included in cash flows from operating activities, and $61.0 million is recorded in prepaid expenses, deposits and other current assets in the statement of financial position. The insurance gains primarily relate to accrued insurance recoveries at replacement cost value for damaged equipment in excess of the write-off of the net book value of property plant and equipment. 17. SUPPLEMENTARY INFORMATION RELATING TO THE NATURE OF EXPENSES (continued): (d) Government assistance: |
RESTRUCTURING AND ACQUISITION-R
RESTRUCTURING AND ACQUISITION-RELATED COSTS | 12 Months Ended |
Jan. 02, 2022 | |
Analysis of income and expense [abstract] | |
RESTRUCTURING AND ACQUISITION-RELATED COSTS | RESTRUCTURING AND ACQUISITION-RELATED COSTS: Restructuring and acquisition-related costs are presented in the following table, and are comprised of costs directly related to significant exit activities, including the closure of business locations or the relocation of business activities, significant changes in management structure, as well as transaction, exit, and integration costs incurred pursuant to business acquisitions. 2021 2020 Employee termination and benefit costs $ 251 $ 10,900 Exit, relocation and other costs 3,312 13,321 Net loss on disposal and write-downs of property, plant and equipment, right-of-use 3,136 23,933 Acquisition-related transaction costs 1,526 — $ 8,225 $ 48,154 Restructuring and acquisition-related costs in fiscal 2021 related to the following: $4.1 million for post-closure costs relating to the Company's former textile manufacturing and sewing operations in Mexico; $2.0 million for yarn-spinning plant in the U.S., that was closed in 2020, including a lease exit charge; $1.5 million in transaction costs incurred in connection with the acquisition of Frontier Yarns; and $0.6 million in other costs, to complete restructuring activities that were initiated in prior years. Restructuring and acquisition-related costs in fiscal 2020 related to the following: $22.5 million for the closure of a yarn-spinning plant in the U.S., including accelerated depreciation of right-of-use assets and equipment; $10.8 million for the closure of textile manufacturing and sewing operations in Mexico; $5.9 million for the exit of ship-to-the-piece activities, including computer software write-downs and warehouse consolidation costs; $2.4 million for SG&A workforce reductions; and $6.6 million in other costs, including costs incurred to complete restructuring activities that were initiated in fiscal 2019. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Jan. 02, 2022 | |
Income Taxes [Abstract] | |
INCOME TAXES | INCOME TAXES: The income tax provision differs from the amount computed by applying the combined Canadian federal and provincial tax rates to earnings before income taxes. The reasons for the difference and the related tax effects are as follows: 2021 2020 Earnings (loss) before income taxes $ 624,558 $ (229,373) Applicable statutory tax rate 26.5 % 26.5 % Income taxes at applicable statutory rate 165,508 (60,784) Increase (decrease) in income taxes resulting from: Effect of different tax rates and additional income taxes in other jurisdictions (157,321) 36,397 Income tax and other adjustments related to prior taxation years 73 (1,417) Recognition of previously de-recognized tax benefits related to tax losses and (8,593) (5,150) Non-recognition of tax benefits related to tax losses and temporary differences 11,035 22,451 Effect of non-deductible expenses and other 6,673 4,412 Total income tax expense (recovery) $ 17,375 $ (4,091) Average effective tax rate 2.8 % 1.8 % The Company’s applicable statutory tax rate is the Canadian combined rate applicable in the jurisdictions in which the Company operates. The details of income tax expense are as follows: 2021 2020 Current income taxes, includes a recovery of $1,061 (2020 - $1,511) relating to prior taxation years $ 18,340 $ 3,633 Deferred income taxes: Origination and reversal of temporary differences (4,541) (25,119) Recognition of previously de-recognized tax benefits related to tax losses and (8,593) (5,150) Non-recognition of tax benefits related to tax losses and temporary differences 11,035 22,451 Adjustments relating to prior taxation years 1,134 94 (965) (7,724) Total income tax expense (recovery) $ 17,375 $ (4,091) In fiscal 2021, the Company re-recognized $8.6 million (2020 - $5.2 million) of previously de-recognized (in fiscal 2017 pursuant to the organizational realignment plan) deferred income tax assets in the U.S. relating to deferred income tax assets that are now more likely than not to be recovered. 19. INCOME TAXES (continued): Significant components of the Company’s deferred income tax assets and liabilities relate to the following temporary differences and unused tax losses: January 2, 2022 January 3, 2021 Deferred income tax assets: Non-capital losses $ 102,138 $ 99,659 Non-deductible reserves and accruals 26,304 28,211 Property, plant and equipment 16,434 15,319 Other items 7,730 7,455 152,606 150,644 Unrecognized deferred income tax assets (102,749) (100,424) Deferred income tax assets $ 49,857 $ 50,220 Deferred income tax liabilities: Property, plant and equipment $ (34,668) $ (28,643) Intangible assets 2,537 (3,888) Deferred income tax liabilities $ (32,131) $ (32,531) Deferred income taxes $ 17,726 $ 17,689 The details of changes to deferred income tax assets and liabilities were as follows: 2021 2020 Balance, beginning of fiscal year, net $ 17,689 $ 9,917 Recognized in the statements of earnings: Non-capital losses 3,462 155 Non-deductible reserves and accruals (1,944) 16,044 Property, plant and equipment (4,909) 4,400 Intangible assets 6,425 5,344 Other 274 (825) Unrecognized deferred income tax assets (2,343) (17,394) 965 7,724 Business acquisitions (979) — Other 51 48 Balance, end of fiscal year, net $ 17,726 $ 17,689 As at January 2, 2022, the Company has tax credits, capital and non-capital loss carryforwards, and other deductible temporary differences available to reduce future taxable income for tax purposes representing a tax benefit of approximately $102.7 million, for which no deferred tax asset has been recognized (January 3, 2021 - $100.4 million), because the criteria for recognition of the tax asset was not met. The tax credits and capital and non-capital loss carryforwards expire between 2027 and 2041. The recognized deferred tax asset related to loss carryforwards is supported by projections of future profitability of the Company. The Company has not recognized a deferred income tax liability for the undistributed profits of subsidiaries operating in foreign jurisdictions, as the Company currently has no intention to repatriate these profits. If expectations or intentions change in the future, the Company may be subject to an additional tax liability upon distribution of these earnings in the form of dividends or otherwise. As at January 2, 2022, a deferred income tax liability of approximately $61 million would result from the recognition of the taxable temporary differences of approximately $560 million. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Jan. 02, 2022 | |
Earnings per share [abstract] | |
EARNINGS PER SHARE | EARNINGS (LOSS) PER SHARE: Reconciliation between basic and diluted earnings (loss) per share is as follows: 2021 2020 Net earnings (loss) - basic and diluted $ 607,183 $ (225,282) Basic earnings (loss) per share: Basic weighted average number of common shares outstanding 197,014 198,361 Basic earnings (loss) per share $ 3.08 $ (1.14) Diluted earnings (loss) per share: Basic weighted average number of common shares outstanding 197,014 198,361 Plus dilutive impact of stock options, Treasury RSUs, and common shares held in trust 581 — Diluted weighted average number of common shares outstanding 197,595 198,361 Diluted earnings (loss) per share $ 3.07 $ (1.14) Excluded from the above calculation for the year ended January 2, 2022 are nil stock options (2020 - 3,519,127) and nil Treasury RSUs (2020 - 43,485) which were deemed to be anti-dilutive. |
DEPRECIATION AND AMORTIZATION
DEPRECIATION AND AMORTIZATION | 12 Months Ended |
Jan. 02, 2022 | |
Depreciation and amortisation expense [abstract] | |
DEPRECIATION AND AMORTIZATION | DEPRECIATION AND AMORTIZATION: 2021 2020 Depreciation of property, plant and equipment (note 9) $ 92,176 $ 108,452 Depreciation of right-of-use assets (note 10) 13,973 14,656 Adjustment for the variation of depreciation included in inventories at the beginning and end of the year 11,177 3,676 Amortization of intangible assets, excluding software (note 11) 12,818 14,302 Amortization of software (note 11) 5,258 6,104 Depreciation and amortization included in net earnings $ 135,402 $ 147,190 |
SUPPLEMENTAL CASH FLOW DISCLOSU
SUPPLEMENTAL CASH FLOW DISCLOSURE | 12 Months Ended |
Jan. 02, 2022 | |
Cash flow statement [Abstract] | |
SUPPLEMENTAL CASH FLOW DISCLOSURE | SUPPLEMENTAL CASH FLOW DISCLOSURE: (a) Adjustments to reconcile net earnings to cash flows from operating activities - other items: 2021 2020 Deferred income taxes (note 19) $ (965) $ (7,724) Unrealized net (gain) loss on foreign exchange and financial derivatives (5,958) 8,439 Timing differences between settlement of financial derivatives and transfer of deferred gains and losses in accumulated OCI to inventory and net earnings 8,012 (1,708) Other non-current assets 2,246 1,530 Other non-current liabilities 2,653 4,154 $ 5,988 $ 4,691 (b) Variations in non-cash transactions: 2021 2020 Additions to property, plant and equipment and intangible assets included in accounts payable and accrued liabilities $ 4,641 $ (13,751) Proceeds on disposal of property, plant and equipment included in other current assets — (375) Additions to right-of-use assets included in lease obligations 3,504 16,189 Non-cash ascribed value credited to share capital from shares issued or distributed pursuant to vesting of restricted share units and exercise of stock options 4,515 7,552 Deferred compensation credited to contributed surplus (2,075) — Non-cash ascribed value credited to contributed surplus for dividends attributed to restricted share units 943 336 (c) Changes in non-cash working capital balances: 2021 2020 Trade accounts receivable $ (135,103) $ 125,150 Income taxes 12,577 (5,747) Inventories (33,744) 320,384 Prepaid expenses, deposits and other current assets (18,964) 18,199 Accounts payable and accrued liabilities 78,495 (62,476) $ (96,739) $ 395,510 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Jan. 02, 2022 | |
Related Party [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS: Key management personnel compensation: Key management personnel includes those individuals that have authority and responsibility for planning, directing and controlling the activities of the Company, directly or indirectly, and is comprised of the members of the executive management team and the Board of Directors. The amount for compensation expense recognized in net earnings for key management personnel, including amounts for an executive who retired during fiscal 2021, was as follows: 2021 2020 Short-term employee benefits $ 12,296 $ 7,754 Post-employment benefits 907 170 Share-based payments 30,460 1,721 $ 43,663 $ 9,645 The amounts included in accounts payable and accrued liabilities for share-based compensation awards to key management personnel were as follows: January 2, 2022 January 3, 2021 DSUs $ 13,280 $ 8,433 Other: During fiscal 2021, the Company incurred expenses for aircraft and other services of $1.5 million (2020 - $0.7 million), with companies controlled by the President and Chief Executive Officer of the Company. The payments made are in accordance with the terms of the agreement established and agreed to by the related parties. As at January 2, 2022, the amount in accounts payable and accrued liabilities related to the airplane usage and other services was $0.3 million (January 3, 2021 - $0.1 million). On June 23, 2021, the aircraft agreement was amended with an effective date of January 1, 2021 to incorporate a minimum usage fee per year, which is calculated as the average usage in the two preceding fiscal years, excluding the years 2020 and 2021, multiplied by the hourly fee. As at January 2, 2022, the Company has a commitment of $1.3 million under this amended agreement, which relates to minimum usage fees for fiscal 2022. |
COMMITMENTS, GUARANTEES AND CON
COMMITMENTS, GUARANTEES AND CONTINGENT LIABILITIES | 12 Months Ended |
Jan. 02, 2022 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
COMMITMENTS, GUARANTEES AND CONTINGENT LIABILITIES | COMMITMENTS, GUARANTEES AND CONTINGENT LIABILITIES: (a) Claims and litigation: The Company is a party to claims and litigation arising in the normal course of operations. The Company does not expect the resolution of these matters to have a material adverse effect on the financial position or results of operations of the Company. (b) Guarantees: The Company, and some of its subsidiaries, have granted financial guarantees, irrevocable standby letters of credit, and surety bonds to third parties to indemnify them in the event the Company and some of its subsidiaries do not perform their contractual obligations. As at January 2, 2022, the maximum potential liability under these guarantees was $121.3 million (January 3, 2021 - $54.6 million), of which $10.5 million was for surety bonds and $110.8 million was for financial guarantees and standby letters of credit (January 3, 2021 - $10.5 million and $44.1 million, respectively). As at January 2, 2022, the Company has recorded no liability with respect to these guarantees, as the Company does not expect to make any payments for the aforementioned items. |
CAPITAL DISCLOSURES
CAPITAL DISCLOSURES | 12 Months Ended |
Jan. 02, 2022 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
CAPITAL DISCLOSURES | CAPITAL DISCLOSURES: The Company’s objective in managing capital is to ensure sufficient liquidity to pursue its organic growth strategy and undertake selective acquisitions, while maintaining a strong credit profile and a capital structure that reflects a target ratio of financial leverage as noted below. The Company’s capital is composed of net debt and shareholders’ equity. Net debt consists of interest-bearing debt less cash and cash equivalents. The Company’s use of capital is to finance working capital requirements, capital expenditures, business acquisition, payment of dividends, as well as share repurchases. The Company currently funds these requirements out of its internally-generated cash flows and with funds drawn from its long-term debt facilities. The primary measure used by the Company to monitor its financial leverage is its net debt leverage ratio. The Company’s net debt leverage ratio is defined as the ratio of net debt to adjusted EBITDA for the trailing twelve months, on a pro-forma basis to reflect business acquisitions made during the trailing twelve month period, as if they had occurred at the beginning of the trailing twelve month period. Adjusted EBITDA is calculated as earnings before financial expenses, income taxes, and depreciation and amortization, and excludes the impact of restructuring and acquisition-related costs. Adjusted EBITDA also excludes impairment of goodwill and intangible assets and reversal of impairments on intangible assets, net insurance gains related to the two hurricanes which impacted the Company’s operations in Central America, the discontinuance of PPE SKUs, the impact of the Company's strategic initiative to significantly reduce its retail product line SKU count which the Company began implementing in the fourth quarter of fiscal 2020, and the impact of adjustments related to the Company’s decision in the fourth quarter of fiscal 2019 to implement a strategic initiative to significantly reduce its imprintables product line SKU count, by exiting all ship to-the-piece activities and discontinuing overlapping and less productive styles and SKUs between brands. The Company has set a fiscal year-end net debt leverage target ratio of one to two times adjusted EBITDA. As at January 2, 2022, the Company’s net debt leverage ratio was 0.7 times (January 3, 2021 - 3.5 times). In order to maintain or adjust its capital structure, the Company, upon approval from its Board of Directors, may issue or repay long-term debt, issue shares, repurchase shares, pay dividends or undertake other activities as deemed appropriate under the specific circumstances. The Board of Directors will consider several factors when deciding to declare quarterly cash dividends or approve share repurchase programs, including the Company’s present and future earnings, cash flows, capital requirements and present and/or future regulatory and legal restrictions. There can be no assurance as to the declaration of future quarterly cash dividends. In April 2020, given the severity of the economic environment resulting from the COVID-19 pandemic, the Company suspended share repurchases and its quarterly cash dividend. On May 25, 2021 the Board of Directors approved the reinstatement of the Company's quarterly dividend of $0.154 per share, in line with Gildan's previous cash dividend rate prior to suspending these payments after the first quarter in fiscal 2020. The Company paid dividends of $90.5 million during the year ended January 2, 2022, representing dividends declared per common share of $0.462. On August 4, 2021 the Board of Directors approved the reinstatement of the Company’s share repurchase program. The Company repurchased for cancellation a total of 6,475,375 common shares under its NCIB programs for a total cost of $250.4 million during the year ended January 2, 2022. The Company is not subject to any capital requirements imposed by a regulator. |
DISAGGREGATION OF REVENUE
DISAGGREGATION OF REVENUE | 12 Months Ended |
Jan. 02, 2022 | |
Disclosure of disaggregation of revenue from contracts with customers [abstract] | |
DISAGGREGATION OF REVENUE | DISAGGREGATION OF REVENUE: Net sales by major product group were as follows: 2021 2020 Activewear $ 2,364,740 $ 1,498,408 Hosiery and underwear 557,830 482,868 $ 2,922,570 $ 1,981,276 Net sales were derived from customers located in the following geographic areas: 2021 2020 United States $ 2,526,552 $ 1,696,872 Canada 114,800 76,163 International 281,218 208,241 $ 2,922,570 $ 1,981,276 |
ENTITY-WIDE DISCLOSURES
ENTITY-WIDE DISCLOSURES | 12 Months Ended |
Jan. 02, 2022 | |
Entity-wide disclosures [Abstract] | |
ENTITY-WIDE DISCLOSURES | ENTITY-WIDE DISCLOSURES: Following an internal reorganization which took effect on January 1, 2018 and resulted in the consolidation of the Company’s divisional organizational structure, the Company manages its business on the basis of one reportable operating segment. Property, plant and equipment, right-of-use-assets, intangible assets, and goodwill, are allocated to geographic areas as follows: January 2, 2022 January 3, 2021 United States $ 602,120 $ 431,403 Canada 69,939 95,585 Honduras 346,256 323,617 Caribbean 486,876 448,278 Asia-Pacific 129,926 114,785 Other 32,848 39,114 $ 1,667,965 $ 1,452,782 Customers accounting for at least 10% of total net sales for the fiscal years ended January 2, 2022 and January 3, 2021 were as follows: 2021 2020 Customer A 15.9 % 12.3 % Customer B 13.9 % 13.1 % Customer C 7.9 % 10.4 % |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jan. 02, 2022 | |
List Of Accounting Policies [Abstract] | |
Statement of compliance | These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). |
Basis of measurement | These consolidated financial statements have been prepared on the historical cost basis except for the following items in the consolidated statements of financial position: • Derivative financial instruments which are measured at fair value; • Employee benefit obligations related to defined benefit plans which are measured at the present value of the defined benefit obligations, net of advance payments made to employees thereon; • Liabilities for cash-settled share-based payment arrangements which are measured at fair value, and equity-classified share-based payment arrangements which are measured at fair value at grant date pursuant to IFRS 2, Share-based payment; • Discontinued, damaged, and excess finished inventories which are carried at the net realizable value; • Provisions for decommissioning, site restoration costs, and onerous contracts which are measured at the present value of the expenditures expected to be required to settle the obligation; and • Identifiable assets acquired and liabilities assumed in connection with a business combination which are initially measured at fair value. |
Business combinations | Business combinations are accounted for using the acquisition method. Accordingly, the consideration transferred for the acquisition of a business is the fair value of the assets transferred and any debt and equity interests issued by the Company on the date control of the acquired company is obtained. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Contingent consideration classified as an asset or a liability that is a financial instrument is subsequently remeasured at fair value, with any resulting gain or loss recognized and included in restructuring and acquisition-related costs in the consolidated statement of earnings and comprehensive income. Acquisition-related costs, other than those associated with the issue of debt or equity securities, are expensed as incurred and are included in restructuring and acquisition-related costs in the consolidated statement of earnings and comprehensive income. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are generally measured initially at their fair values at the acquisition date. The Company recognizes any non-controlling interest in an acquired company either at fair value or at the non-controlling interest’s proportionate share of the acquired company’s net identifiable assets. The excess of the consideration transferred over the fair value of the identifiable net assets acquired is recorded as goodwill. If the total of consideration transferred and non-controlling interest recognized is less than the fair value of the net assets of the business acquired, a purchase gain is recognized immediately in the consolidated statement of earnings and comprehensive income |
Subsidiaries | Subsidiaries are entities controlled by the Company. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. The accounting policies of subsidiaries are aligned with the policies adopted by the Company. Intragroup transactions, balances, and unrealized gains or losses on transactions between group companies are eliminated. |
Foreign currency translation | Monetary assets and liabilities of the Company’s Canadian and foreign operations denominated in currencies other than the U.S. dollar are translated using exchange rates in effect at the reporting date. Non-monetary assets and liabilities denominated in currencies other than U.S. dollars are translated at the rates prevailing at the respective transaction dates. Income and expenses denominated in currencies other than U.S. dollars are translated at average rates prevailing during the year. Gains or losses on foreign exchange are recorded in net earnings and presented in the statement of earnings and comprehensive income within financial expenses. |
Cash and cash equivalents | The Company considers all liquid investments with maturities of three months or less from the date of purchase to be cash equivalents |
Trade accounts receivable | Trade accounts receivable:Trade accounts receivable consist of amounts due from our normal business activities. An allowance for expected credit losses is maintained to reflect an impairment risk for trade accounts receivable based on an expected credit loss model which factors in changes in credit quality since the initial recognition of trade accounts receivable based on customer risk categories. Expected credit losses are also provided for based on collection history and specific risks identified on a customer-by-customer basis. Trade accounts receivable are presented net of allowances for expected credit losses, sales discounts, and sales returns when the Company has a right to offset the amounts.The Company may continuously sell trade accounts receivables of certain designated customers to a third-party financial institution in exchange for a cash payment equal to the face value of the sold trade receivables less an applicable discount. The Company retains servicing responsibilities, including collection, for these trade accounts receivables but does not retain any credit risk with respect to any trade accounts receivables that have been sold. All trade accounts receivables sold under the receivables purchase agreement are removed from the consolidated statements of financial position, as the sale of the trade accounts receivables qualify for de-recognition. The net cash proceeds received by the Company are included as cash flows from operating activities in the consolidated statements of cash flows. The difference between the carrying amount of the trade accounts receivables sold under the agreement and the cash received at the time of transfer is recorded |
Inventories | Inventories are stated at the lower of cost and net realizable value. The cost of inventories is based on the first-in, first-out principle, and reflect the various stages of production that inventories have reached at period-end. Inventory costs include the purchase price and other costs directly related to the acquisition of raw materials and spare parts held for use in the manufacturing process, and the cost of purchased finished goods. Inventory costs also include the costs directly related to the conversion of materials to finished goods, such as direct labour, and a systematic allocation of fixed and variable production overhead, including manufacturing depreciation expense. The allocation of fixed production overhead to the cost of inventories is based on the normal capacity of the production facilities. Additional costs incurred as a result of operating below the normal capacity of the production facilities are excluded from the carrying value of inventories and charged directly to cost of sales. Normal capacity is the average production expected to be achieved during the fiscal year, under normal circumstances. The Company manages its day-to-day production costs and inventories using a standard inventory costing system whereby the cost of a product is determined using pre-established rates for materials, labour and production overhead expenses based on the manufacturing specifications of the product. At period end, the Company assesses whether the variances between the standard costs and the actual costs incurred relate to the conversion of materials to finished goods, or if they represent abnormal costs that should be charged directly to cost of sales. The carrying value of inventories is then adjusted to record the manufacturing variances related to inventories still on hand and manufacturing variances related to inventories that have been sold are charged to cost of sales, through an allocation method which uses an estimated variance deferral factor based on the number of days of inventory on hand based on the most recent past production. The Company's inventory costing process involves a combination of automated and non-automated systems and processes using data obtained from different geographical locations. Net realizable value is the estimated selling price of finished goods in normal sales channels, or where applicable, liquidation channels, less the estimated costs of completion and selling expenses. Raw materials, work in progress, and spare parts inventories are not written down if the finished products in which they will be incorporated are expected to be sold at or above cost. |
Assets held for sale | Non-current assets which are classified as assets held for sale are reported in current assets in the statement of financial position, when their carrying amount is to be recovered principally through a sale transaction rather than through continuing use, and a sale is considered highly probable. Assets held for sale are stated at the lower of their carrying amount and fair value less costs to sell. |
Property, plant and equipment | Property, plant and equipment are initially recorded at cost and are subsequently carried at cost less any accumulated depreciation and any accumulated impairment losses. The cost of an item of property, plant and equipment includes expenditures that are directly attributable to the acquisition or construction of an asset. The cost of self-constructed assets includes the cost of materials and direct labour, site preparation costs, initial delivery and handling costs, installation and assembly costs, and any other costs directly attributable to bringing the assets to the location and condition necessary for the assets to be capable of operating in the manner intended by management. The cost of property, plant and equipment also includes, when applicable, borrowing costs, as well as the initial present value estimate of the costs of decommissioning or dismantling and removing the asset and restoring the site on which it is located at the end of its useful life which is amortized over the remaining life of the underlying asset. Purchased software that is integral to the functionality of the related equipment is capitalized as part of other equipment. Subsequent costs are included in an asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits are present and the cost of the item can be measured reliably. When property, plant and equipment are replaced they are fully written down. Gains and losses on the disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment and are recognized in the statement of earnings and comprehensive income. 3. SIGNIFICANT ACCOUNTING POLICIES (continued): (g) Property, plant and equipment (continued): Land is not depreciated. The cost of property, plant and equipment less its residual value, if any, is depreciated on a straight-line basis over the following estimated useful lives: Asset Useful life Buildings and improvements 5 to 40 years Manufacturing equipment 2 to 20 years Other equipment 3 to 10 years Significant components of plant and equipment which are identified as having different useful lives are depreciated separately over their respective useful lives. Depreciation methods, useful lives and residual values, if applicable, are reviewed and adjusted, if appropriate, on a prospective basis at the end of each fiscal year. Assets not yet utilized in operations include expenditures incurred to date for plant constructions or expansions which are still in process and equipment not yet placed into service as at the reporting date. Depreciation on these assets commences when the assets are available for use. |
Borrowing costs | Borrowing costs that are directly attributable to the acquisition or construction of a qualifying asset are capitalized as part of the cost of the asset. A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use. Capitalization of borrowing costs ceases when the asset is completed and available for use. All other borrowing costs are recognized as financial expenses in the consolidated statement of earnings and comprehensive income as incurred. |
Intangible assets | The costs of information technology projects that are directly attributable to the design and testing of identifiable and unique software products, including internally developed computer software, are recognized as intangible assets when the following criteria are met: • it is technically feasible to complete the software product so that it will be available for use; • management intends to complete the software product and use it; • there is an ability to use the software product; • it can be demonstrated how the software product will generate probable future economic benefits; • adequate technical, financial, and other resources to complete the development and to use the software product are available; and • the expenditures attributable to the software product during its development can be reliably measured. |
Goodwill | Goodwill is measured at cost less accumulated impairment losses, if any. Goodwill arises on business combinations and is measured as the excess of the consideration transferred and the recognized amount of the non-controlling interest in the acquired business, if any, over the fair value of identifiable assets acquired and liabilities assumed of an acquired business. |
Impairment of non-financial assets | Non-financial assets that have an indefinite useful life such as goodwill and trademarks are not subject to amortization and are therefore tested annually for impairment or more frequently if events or changes in circumstances indicate that the asset might be impaired. Assets that are subject to amortization are assessed at the end of each reporting period as to whether there is any indication of impairment or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s value in use and fair value less costs of disposal. The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets, in which case assets are grouped at the lowest levels for which there are separately identifiable cash inflows (i.e. cash-generating units or "CGUs"). In assessing value in use, the estimated future cash flows expected to be derived from the asset or CGU by the Company are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset and or the CGU. In assessing a CGU’s fair value less costs of disposal, the Company uses the best information available to reflect the amount that the Company could obtain, at the time of the impairment test, from the disposal of the asset or CGU in an arm’s length transaction between knowledgeable, willing parties, after deducting the estimated costs of disposal. For the purpose of testing goodwill for impairment, goodwill acquired in a business combination is allocated to a CGU or a group of CGUs that is expected to benefit from the synergies of the combination, regardless of whether other assets or liabilities of the acquired company are assigned to those CGUs. Impairment losses recognized are allocated first to reduce the carrying amount of any goodwill allocated to the CGU and then to reduce the carrying amounts of the other assets in the CGU on a pro rata basis. Impairment losses are recognized in the statement of earnings and comprehensive income. Reversal of impairment losses A goodwill impairment loss is not reversed. Impairment losses on non-financial assets other than goodwill recognized in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized. |
Financial instruments | he Company initially recognizes financial assets on the trade date at which the Company becomes a party to the contractual provisions of the instrument. Financial assets are initially measured at fair value. If the financial asset is not subsequently accounted for at fair value through profit or loss, then the initial measurement includes transaction costs that are directly attributable to the asset’s acquisition or origination. On initial recognition, the Company classifies its financial assets as subsequently measured at either amortized cost or fair value, depending on its business model for managing the financial assets and the contractual cash flow characteristics of the financial assets. |
Financial assets | Financial assets are classified into the following categories and depend on the purpose for which the financial assets were acquired. Financial assets measured at amortized cost A financial asset is subsequently measured at amortized cost, using the effective interest method and net of any impairment loss, if: • The asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows; and • The contractual terms of the financial asset give rise, on specified dates, to cash flows that are solely payments of principal and/or interest. The Company currently classifies its cash and cash equivalents, trade accounts receivable, certain other current assets (excluding derivative financial instruments designated as effective hedging instruments), and long-term non-trade receivables as financial assets measured at amortized cost. The Company de-recognizes a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred. Financial assets measured at fair value |
Financial liabilities | Financial liabilities are classified into the following categories. Financial liabilities measured at amortized cost A financial liability is subsequently measured at amortized cost, using the effective interest method. The Company currently classifies accounts payable and accrued liabilities (excluding derivative financial instruments designated as effective hedging instruments), and long-term debt bearing interest at variable and fixed rates as financial liabilities measured at amortized cost. Financial liabilities measured at fair value Financial liabilities at fair value are initially recognized at fair value and are remeasured at each reporting date with any changes therein recognized in net earnings. The Company currently has no significant financial liabilities measured at fair value. The Company derecognizes a financial liability when its contractual obligations are discharged or cancelled or expired. |
Fair value of financial instruments | Financial instruments measured at fair value use the following fair value hierarchy to prioritize the inputs used in measuring fair value: • Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities; • Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and • Level 3: inputs for the asset or liability that are not based on observable market data. Impairment of financial assets The Company recognizes loss allowances for expected credit losses on financial assets measured at amortized cost. The Company recognizes a loss allowance at an amount equal to the lifetime expected credit losses if the credit risk on that financial instrument has increased significantly since initial recognition. Otherwise, the loss allowance for that financial instrument corresponds to an amount equal to twelve-month expected credit losses. The Company uses the simplified method to measure the loss allowance for trade receivables at lifetime expected losses. The Company uses historical trends of default, the timing of recoveries and the amount of loss incurred, adjusted for management’s judgement as to whether current economic and credit conditions are such that the actual losses are likely to be greater or less than suggested by historical trends. Losses are recognized in the consolidated statement of income and reflected in an allowance account against trade and other receivables. |
Derivative financial instruments and hedging relationships | The Company enters into derivative financial instruments to hedge its market risk exposures. On initial designation of the hedge, the Company formally documents the relationship between the hedging instruments and hedged items, including the risk management objectives and strategy in undertaking the hedge transaction, together with the methods that will be used to assess the effectiveness of the hedging relationship. The Company makes an assessment, both at the inception of the hedge relationship as well as on an ongoing basis, whether the hedging instruments are expected to be effective in offsetting the changes in the fair value or cash flows of the respective hedged items during the period for which the hedge is designated. For a cash flow hedge of a forecasted transaction, the transaction should be highly probable to occur and should present an exposure to variations in cash flows that could ultimately affect reported net earnings. Derivatives are recognized initially at fair value, and attributable transaction costs are recognized in net earnings as incurred. Subsequent to initial recognition, derivatives are measured at fair value, and changes therein are accounted for as described below. 3. SIGNIFICANT ACCOUNTING POLICIES (continued): (l) Derivative financial instruments and hedging relationships (continued): Cash flow hedges When a derivative is designated as the hedging instrument in a hedge of the variability in cash flows attributable to a particular risk associated with a recognized asset or liability or a highly probable forecasted transaction that could affect net earnings, the effective portion of changes in the fair value of the derivative is recognized in other comprehensive income and presented in accumulated other comprehensive income as part of equity. The amount recognized in other comprehensive income is removed and included in net earnings under the same line item in the consolidated statement of earnings and comprehensive income as the hedged item, in the same period that the hedged cash flows affect net earnings. When a hedged forecasted transaction subsequently results in the recognition of a non-financial asset or liability, the cash flow hedge reserve is removed from accumulated other comprehensive income and included in the initial cost or carrying amount of the asset or liability. Any ineffective portion of changes in the fair value of the derivative is recognized immediately in net earnings. If the hedging instrument no longer meets the criteria for hedge accounting, expires or is sold, terminated, exercised, or the designation is revoked, then hedge accounting is discontinued prospectively. If the forecasted transaction is no longer expected to occur, then the balance in accumulated other comprehensive income is recognized immediately in net earnings. Fair value hedges Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognized in net earnings, together with any changes in the fair value of the hedged asset, liability or firm commitment that are attributable to the hedged risk. The change in fair value of the hedging instrument and the change in the hedged item attributable to the hedged risk are recognized in the statement of earnings and comprehensive income or in the statement of financial position caption relating to the hedged item. If the hedging instrument no longer meets the criteria for hedge accounting, expires or is sold, terminated, exercised, or the designation is revoked, then hedge accounting is discontinued prospectively. Embedded derivatives Embedded derivatives within a financial liability are separated from the host contract and accounted for separately if the economic characteristics and risks of the host contract and the embedded derivative are not closely related, a separate instrument with the same terms as the embedded derivative would meet the definition of a derivative, and the combined instrument is not measured at fair value through profit or loss. Other derivatives |
Accounts payable and accrued liabilities | Accounts payable and accrued liabilities are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method. Accounts payable and accrued liabilities are classified as current liabilities if payment is due within one year, otherwise, they are presented as non-current liabilities |
Long-term debt | Long-term debt is recognized initially at fair value and is subsequently carried at amortized cost. Initial facility fees are deferred and treated as an adjustment to the instrument's effective interest rate and recognized as an expense over the instrument's estimated life if it is probable that the facility will be drawn down. However, if it is not probable that a facility will be drawn down for its entire term, then the fees are considered service fees and are deferred and recognized as an expense on a straight-line basis over the commitment period |
Employee benefits | Short-term employee benefits Short-term employee benefits include wages, salaries, commissions, compensated absences and bonuses. Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. A liability is recognized for the amount expected to be paid under short-term cash bonus or profit sharing plans if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee, and the obligation can be estimated reliably. Short-term employee benefit obligations are included in accounts payable and accrued liabilities. Defined contribution plans The Company offers group defined contribution plans to eligible employees whereby the Company matches employees' contributions up to a fixed percentage of the employee's salary. Contributions by the Company to trustee-managed investment portfolios or employee associations are expensed as incurred. Benefits are also provided to employees through defined contribution plans administered by the governments in the countries in which the Company operates. The Company’s contributions to these plans are recognized in the period when services are rendered. Defined benefit plans |
Provisions | Provisions are recognized when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation, and the amount can be reliably estimated. Provisions are not recognized for future operating losses. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognized as financial expense. Provisions are included in other non-current liabilities in the consolidated statement of financial position. Decommissioning and site restoration costs The Company recognizes decommissioning and site restoration obligations for future removal and site restoration costs associated with the restoration of certain property and plant should it decide to discontinue some of its activities. Onerous contracts |
Share capital | Common shares are classified as equity. Incremental costs directly attributable to the issuance of common shares and stock options are recognized as a deduction from equity, net of any tax effects.When the Company repurchases its own shares, the consideration paid, including any directly attributable incremental costs (net of income taxes) is deducted from equity attributable to the Company’s equity holders until the shares are cancelled or reissued. |
Dividends declared | Dividends declared to the Company’s shareholders are recognized as a liability in the consolidated statement of financial position and charged to retained earnings in the period in which the dividends are approved by the Company’s Board of Directors |
Revenue recognition | The Company derives revenue from the sale of finished goods, which include activewear, hosiery, and underwear. The Company recognizes revenue at a point in time when it transfers control of the finished goods to a customer, which generally occurs upon shipment of the finished goods from the Company’s facilities. In certain arrangements, control is transferred and revenue is recognized upon delivery of the finished goods to the customer’s premises. Some arrangements for the sale of finished goods provide for customer price discounts, rights of return and/or volume rebates based on aggregate sales over a specified period, which gives rise to variable consideration. At the time of sale, estimates are made for items giving rise to variable consideration based on the terms of the sales program or arrangement. The variable consideration is estimated at contract inception using the most likely amount method and revenue is only recognized to the extent that a significant reversal of revenue is not expected to occur. The estimate is based on historical experience, current trends, and other known factors. New sales incentive programs which relate to sales made in a prior period are recognized at the time the new program is introduced. Sales are recorded net of customer discounts, rebates, and estimated sales returns, and exclude sales taxes. A provision is recognized for expected returns in relation to sales made before the end of the reporting period. |
Cost of sales and gross profit | Cost of sales includes all raw material costs, manufacturing conversion costs, including manufacturing depreciation expense, sourcing costs, inbound freight and inter-facility transportation costs, and outbound freight to customers. Cost of sales also includes the cost of purchased finished goods, costs relating to purchasing, receiving and inspection activities, manufacturing administration, third-party manufacturing services, sales-based royalty costs, insurance, inventory write-downs, and customs and duties, as well as net insurance gains as described in note 17 (c). Gross profit is the result of net sales less cost of sales. The Company’s gross profit may not be comparable to gross profit as reported by other companies, since some entities include warehousing and handling costs, and/or exclude depreciation expense, outbound freight to customers and royalty costs from cost of sales. |
Selling, general and administrative expenses | Selling, general and administrative (“SG&A”) expenses include warehousing and handling costs, selling and administrative personnel costs, advertising and marketing expenses, costs of leased non-manufacturing facilities and equipment, professional fees, non-manufacturing depreciation expense, and other general and administrative expenses. SG&A expenses also include amortization of intangible assets |
Restructuring and acquisition-related costs | Restructuring and acquisition-related costs are expensed when incurred, or when a legal or constructive obligation exists. Restructuring and acquisition-related costs are comprised of costs directly related to significant exit activities, including the closure of business locations or the relocation of business activities, significant changes in management structure, as well as transaction and integration costs incurred pursuant to business acquisitions. The nature of expenses included in restructuring and acquisition-related costs may include: severance and termination benefits, including the termination of employee benefit plans; gains or losses from the remeasurement and disposal of assets held for sale; write-downs of property, plant and equipment, right-of-use assets, and software related to exit activities; facility exit and closure costs, including the costs of physically transferring inventory and fixed assets to other facilities; costs of integrating the IT systems of an acquired business to Gildan’s existing IT systems; legal, accounting and other professional fees (excluding costs of issuing debt or equity) directly incurred in connection with a business acquisition; purchase gains on business acquisitions; losses on business acquisitions achieved in stages; contingent amounts payable to selling shareholders under their employment agreements pursuant to a business acquisition; and the remeasurement of liabilities related to contingent consideration incurred in connection with a business acquisition |
Cotton and cotton-based yarn procurements | The Company contracts to buy cotton and cotton-based yarn with future delivery dates at fixed prices in order to reduce the effects of fluctuations in the prices of cotton used in the manufacture of its products. These contracts are not used for trading purposes and are not considered to be financial instruments as they are entered into for purchase and receipt in accordance with the Company’s expected usage requirements, and therefore are not measured at fair value. The Company commits to fixed prices on a percentage of its cotton and cotton-based yarn requirements up to eighteen months in the future. If the cost of committed prices for cotton and cotton-based yarn plus estimated costs to complete production exceed current selling prices, a loss is recognized for the excess as a charge to cost of sales |
Government assistance | Government assistance is recognized only when there is reasonable assurance the Company will comply with all related conditions for receipt of the assistance. Government assistance, including grants and tax credits, related to operating expenses is accounted for as a reduction to the related expenses. Government assistance, including monetary and non-monetary grants and tax credits related to the acquisition of property, plant and equipment, is accounted for as a reduction of the cost of the related property, plant and equipment, and is recognized in net earnings using the same methods, periods and rates as for the related property, plant and equipment |
Financial expenses (income) | Financial expenses (income) include: interest expense on borrowings, including realized gains and/or losses on interest rate swaps designated for hedge accounting; bank and other financial charges; amortization of debt facility fees, discount on the sales of trade accounts receivable; interest income on funds invested; interest on lease obligations; accretion of interest on discounted provisions; net foreign currency losses and/or gains; and losses and/or gains on financial derivatives that do not meet the criteria for effective hedge accounting |
Income taxes | Income tax expense is comprised of current and deferred income taxes, and is included in net earnings except to the extent that it relates to a business acquisition, or items recognized directly in equity or in other comprehensive income. Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years. Deferred income tax assets and liabilities are measured at the tax rates that are expected to be applied to temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date, for all temporary differences caused when the tax bases of assets and liabilities differ from those reported in the financial statements. The Company recognizes deferred income tax assets for unused tax losses and deductible temporary differences only to the extent that, in management’s opinion, it is probable that future taxable profit will be available against which the temporary differences can be utilized. Deferred tax assets are reviewed at each reporting date and are derecognized to the extent that it is no longer probable that the related tax benefit will be realized. 3. SIGNIFICANT ACCOUNTING POLICIES (continued): (z) Income taxes (continued): Deferred income tax is not recognized for the following temporary differences: the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss at the time of the transaction; and, where the timing of the reversal of a temporary difference is controlled by the Company and it is probable that the temporary difference will not reverse in the foreseeable future. In addition, deferred tax is not recognized for taxable temporary differences arising on the initial recognition of goodwill. |
Earnings per share | Basic earnings per share are computed by dividing net earnings by the weighted average number of common shares outstanding for the year. Diluted earnings per share are computed using the weighted average number of common shares outstanding for the period adjusted to include the dilutive impact of stock options and restricted share units. The number of additional shares is calculated by assuming that all common shares held in trust for the purpose of settling non-Treasury restricted share units have been delivered, all dilutive outstanding options are exercised and all dilutive outstanding Treasury restricted share units have vested, and that the proceeds from such exercises, as well as the amount of unrecognized share-based compensation which is considered to be assumed proceeds, are used to repurchase common shares at the average share price for the period. For Treasury restricted share units, only the unrecognized share-based compensation is considered assumed proceeds since there is no exercise price paid by the holder |
Share-based payments | Stock options, Stock appreciation rights, Treasury and non-Treasury restricted share units Stock options, Stock appreciation rights ("SARs"), Treasury restricted share units, and non-Treasury restricted share units are equity settled share-based payments, which are measured at fair value at the grant date. For stock options and SARs, the compensation cost is measured using the Black-Scholes option pricing model and is expensed over the award's vesting period. For Treasury and non-Treasury restricted share units, compensation cost is measured at the fair value of the underlying common share at the grant date and is expensed over the award's vesting period. Compensation expense is recognized in net earnings with a corresponding increase in contributed surplus. Any consideration paid by plan participants on the exercise of stock options is credited to share capital. Upon the exercise of stock options, the vesting of Treasury restricted share units, and upon delivery of the common shares for settlement of vesting non-Treasury restricted share units or SARs, the corresponding amounts previously credited to contributed surplus are transferred to share capital. The number of non-Treasury restricted share units remitted to the participants upon settlement is equal to the number of non-Treasury restricted share units awarded less units withheld to satisfy the participants' statutory withholding tax requirements. Stock options and Treasury restricted share units that are dilutive and meet non-market performance conditions as at the reporting date are considered in the calculation of diluted earnings per share, as per note 3(aa) to these consolidated financial statements. Estimates for forfeitures and performance conditions The measurement of compensation expense for stock options, SARs, Treasury restricted share units and non-Treasury restricted share units is net of estimated forfeitures. For the portion of Treasury restricted share units and non-Treasury restricted share units that are issuable based on non-market performance conditions, the amount recognized as an expense is adjusted to reflect the number of awards for which the related service and performance conditions are expected to be met, such that the amount ultimately recognized as an expense is based on the number of awards that do meet the related service and non-market performance conditions at the vesting date. 3. SIGNIFICANT ACCOUNTING POLICIES (continued): (bb) Share-based payments (continued): Deferred share unit plan The Company has a deferred share unit plan for independent members of the Company’s Board of Directors, who receive a portion of their compensation in the form of deferred share units (“DSUs”). These DSUs are cash settled awards and are initially recognized in net earnings based on fair value at the grant date. The DSU obligation is included in accounts payable and accrued liabilities and is remeasured at fair value, based on the market price of the Company’s common shares, at each reporting date. Employee share purchase plans |
Leases | At inception of a contract, the Company assesses whether a contract is, or contains, a lease based on whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Company recognizes a right-of-use ("ROU") asset and a lease liability at the lease commencement date. The ROU asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received. The ROU asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the ROU asset or the lease term. The lease term includes consideration of an option to renew or to terminate if the Company is reasonably certain to exercise that option. Lease terms range from 1 to 18 years for manufacturing, sales, distribution, and administrative facilities. In addition, the ROU asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate. Lease payments mainly include fixed, or in substance fixed, payments and variable lease payments that depend on an index or a rate. Variable lease payments that do not depend on an index or rate are not included in the measurement of the lease liability. The lease liability is measured at amortized cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, or if the Company changes its assessment of whether it will exercise a purchase, extension, or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the ROU asset, or is recorded in profit or loss if the carrying amount of the ROU asset has been reduced to zero. The Company has elected to apply the practical expedient not to recognize ROU assets and lease liabilities for short-term leases that have a lease term of 12 months or less and leases of low-value assets. The lease payments associated with these leases are recognized as an expense on a straight-line basis over the lease term. |
Use of estimates and judgments | The preparation of financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. Critical judgments in applying accounting policies : The following are critical judgments that management has made in the process of applying accounting policies and that have the most significant effect on the amounts recognized in the consolidated financial statements: Determination of cash generating units The identification of CGUs and grouping of assets into the respective CGUs is based on currently available information about actual utilization experience and expected future business plans. Management has taken into consideration various factors in identifying its CGUs. These factors include how the Company manages and monitors its operations, the nature of each CGU’s operations, and the major customer markets they serve. As such, the Company has identified its CGUs for purposes of testing the recoverability and impairment of non-financial assets to be Textile & Sewing and Hosiery. Income taxes The Company’s income tax provisions and income tax assets and liabilities are based on interpretations of applicable tax laws, including income tax treaties between various countries in which the Company operates, as well as underlying rules and regulations with respect to transfer pricing. These interpretations involve judgments and estimates and may be challenged through government taxation audits that the Company is regularly subject to. New information may become available that causes the Company to change its judgment regarding the adequacy of existing income tax assets and liabilities; such changes will impact net earnings in the period that such a determination is made. Key sources of estimation uncertainty : Key sources of estimation uncertainty that have a significant risk of resulting in a material adjustment to the carrying amount of assets and liabilities within the next financial year are as follows: Allowance for expected credit losses The Company makes an assessment of whether accounts receivable are collectable, based on an expected credit loss model which factors in changes in credit quality since the initial recognition of trade accounts receivable based on customer risk categories. Credit quality is assessed by taking into account the financial condition and payment history of the Company's customers, and other factors. Furthermore, these estimates must be continuously evaluated and updated. 3. SIGNIFICANT ACCOUNTING POLICIES (continued): (dd) Use of estimates and judgments (continued): In determining its allowance for expected credit losses, the Company applies the simplified approach per IFRS 9, Financial Instruments, and calculates expected credit losses based on lifetime expected credit losses. The Company uses a provision matrix, which segregates its customers by their economic characteristics and allocates expected credit loss rates based on days past due of its trade receivables. Expected credit loss rates are based on the Company’s historical credit loss experience, adjusted for forward-looking factors of the economic environment. During fiscal 2020, in light of COVID-19 the Company’s provision matrix was adjusted as its historical experience was not reflective of the market conditions present in fiscal 2020. As a result, previously determined loss rates for the individual days past due categories included in the provision matrix were not reflective of expected losses. Therefore, the Company had applied loss rates to individually significant receivables, or sub-categories of individually significant receivables, based on its evaluation of possible outcomes with respect to the collectability of these amounts at the measurement date. During fiscal 2021, the Company adjusted its provision matrix to decrease expected credit loss rates as the economic environment improved while continuing to apply loss rates to individually significant receivables, or sub-categories of individually significant receivables. An expected loss rate ranging between 1% and 10% (2020 - 2% and 10%) has been determined using macroeconomic factors, and depending on the customer's historical payment history and the nature of its operations. Where applicable, specific loss rates have been determined for customers of higher risk of expected credit loss. A 10% increase in the expected loss rate for all customers with a balance due as at January 2, 2022 would result in an $30.9 million increase in the allowance for expected credit losses. In the event that new information becomes available to us that would change the Company's assessment of expected loss, the amounts recorded in allowance for expected credit losses will be updated in the period in which the additional information is received. There is no assurance that our current estimates of recoverability will not change significantly as the COVID-19 pandemic and its related business and societal impacts evolve, which may either require a charge to earnings or a reversal of such allowances in subsequent periods based on revised estimates or actual collection experience. Inventory valuation The cost of inventories may no longer be recoverable if inventories are discontinued, damaged, in excess quantities, or if their selling prices or estimated forecast of product demand decline. Discontinued, damaged, and excess inventories are carried at the net realizable value, as those inventories are sold below cost in liquidation channels. In determining the net realizable value of finished goods, the Company considers recent recovery rates and current market conditions in these channels. The Company regularly reviews inventory quantities on hand, current production plans, and forecasted future sales, and inventories are written down to net realizable value when it is determined that they are no longer fully recoverable. There is estimation uncertainty in relation to the identification of excess inventories and in the expected selling prices used in establishing the net realizable value. As at January 2, 2022, a 10% decrease or increase in the expected selling prices used to establish the net realizable value of discontinued, damaged, and excess inventories would result in either a decrease or an increase in inventories of approximately $2.7 million, with a corresponding adjustment to cost of sales. If actual market conditions are less favorable than previously projected or if liquidation of the inventory which is no longer deemed fully recoverable is more difficult than anticipated, additional write-downs may be required. 3. SIGNIFICANT ACCOUNTING POLICIES (continued): (dd) Use of estimates and judgments (continued): Recoverability and impairment of non-financial assets The calculation of fair value less costs of disposal or value in use for purposes of measuring the recoverable amount of non-financial assets involves the use of significant assumptions and estimates with respect to a variety of factors, including estimated sales volumes, selling prices, gross margins, SG&A expenses, cash flows, capital expenditures, and the selection of an appropriate earnings multiple or discount rate, all of which are subject to inherent uncertainties and subjectivity. The assumptions are based on annual business plans and other forecasted results, earnings multiples obtained by using market comparables as references, and discount rates which are used to reflect market-based estimates of the risks associated with the projected cash flows, based on the best information available as of the date of the impairment test. Changes in circumstances, such as technological advances, adverse changes in third-party licensing arrangements, changes to the Company’s business strategy, and changes in economic and market conditions can result in actual useful lives and future cash flows that differ significantly from estimates and could result in increased charges for amortization or impairment. Revisions to the estimated useful lives of finite-life non-financial assets or future cash flows constitute a change in accounting estimate and are applied prospectively. There can be no assurance that the estimates and assumptions used in the impairment tests will prove to be accurate predictions of the future. If the future adversely differs from management’s best estimate of key economic assumptions and the associated cash flows materially decrease, the Company may be required to record material impairment charges or accelerated depreciation and amortization charges related to its non-financial assets. Please refer to note 11 for additional details on the recoverability of the Company’s cash-generating units. Income taxes The Company has unused available tax losses and deductible temporary differences in certain jurisdictions. The Company recognizes deferred income tax assets for these unused tax losses and deductible temporary differences only to the extent that, in management’s opinion, it is probable that future taxable profit will be available against which these available tax losses and temporary differences can be utilized. The Company’s projections of future taxable profit involve the use of assumptions and estimates with respect to a variety of factors, including future sales and operating expenses. There can be no assurance that the estimates and assumptions used in our projections of future taxable income will prove to be accurate predictions of the future, and in the event that our assessment of the recoverability of these deferred tax assets changes in the future, a material reduction in the carrying value of these deferred tax assets could be required, with a corresponding charge to net earnings. |
FINANCIAL RISK MANAGEMENT (Tabl
FINANCIAL RISK MANAGEMENT (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Trade and other current receivables [abstract] | |
Disclosure of credit risk exposure [text block] | The Company’s exposure to credit risk for trade accounts receivable by geographic area was as follows as at: January 2, January 3, Trade accounts receivable by geographic area: United States $ 296,100 $ 167,080 Canada 16,954 11,192 Europe and other 16,913 18,208 Total trade accounts receivable $ 329,967 $ 196,480 The following tables provide an indication of the Company’s significant foreign currency exposures included in the consolidated statement of financial position as at January 2, 2022 arising from financial instruments: January 2, 2022 (in U.S. $ millions) CAD GBP EUR AUD MXN CNY BDT COP JPY Cash and cash equivalents 6.1 1.7 3.3 1.8 5.3 4.5 4.2 1.9 0.9 Trade accounts receivable 16.9 — 7.0 3.9 2.6 0.7 — — — Prepaid expenses, deposits and other current 0.4 0.3 2.1 — 0.1 0.4 2.4 0.7 — Accounts payable and accrued liabilities (21.0) (0.6) (3.7) (0.6) (1.0) (2.9) (6.8) — — Based on the Company’s foreign currency exposures arising from financial instruments noted above, and the impact of outstanding derivative financial instruments designated as effective hedging instruments, varying the foreign exchange rates to reflect a 5 percent strengthening of the U.S. dollar would have (decreased) increased earnings and other comprehensive income as follows, assuming that all other variables remained constant: For the year ended January 2, 2022 (in U.S. $ millions) CAD GBP EUR AUD MXN CNY BDT COP JPY Impact on earnings before income taxes (0.1) (0.1) (0.4) (0.3) (0.3) (0.1) — (0.1) — Impact on other comprehensive income before income taxes 0.3 1.7 1.6 0.3 0.3 — — — — |
Disclosure of fair value measurement of liabilities [text block] | The following tables present a maturity analysis based on contractual maturity date of the Company's financial liabilities. All commitments have been reflected in the consolidated statements of financial position except for purchase obligations, as well as minimum royalty payments, which are included in the table of contractual obligations below. The amounts are the contractual undiscounted cash flows. Carrying Contractual Less than Between 1 Between 4 More than (in $ millions) amount cash flows 1 year and 3 years and 5 years 5 years Accounts payable and accrued liabilities 440.4 440.4 440.4 — — — Long-term debt 600.0 600.0 — 150.0 450.0 — Purchase and other obligations — 392.9 320.8 54.5 14.9 2.7 Lease obligations 109.1 133.2 21.2 28.2 22.4 61.4 Total contractual obligations 1,149.5 1,566.5 782.4 232.7 487.3 64.1 |
Description of aging of trade accounts receivable balances | The aging of trade accounts receivable balances was as follows as at: January 2, January 3, Not past due $ 318,528 $ 173,354 Past due 0-30 days 9,352 16,572 Past due 31-60 days 3,667 4,360 Past due 61-120 days 2,903 5,912 Past due over 121 days 9,221 15,276 Trade accounts receivable 343,671 215,474 Less allowance for expected credit losses (13,704) (18,994) Total trade accounts receivable $ 329,967 $ 196,480 |
BASIS OF PREPARATION BASIS OF P
BASIS OF PREPARATION BASIS OF PREPARATION (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Disclosure of quantitative information about right-of-use assets | The following table presents the right-of-use assets for the Company: 2021 2020 Balance, beginning of fiscal year $ 59,445 $ 73,539 Additions 8,132 16,424 Additions through business acquisitions 43,539 — Write-downs, impairments, and accelerated depreciation (4,696) (15,862) Depreciation (note 21) (13,973) (14,656) Balance, end of fiscal year $ 92,447 $ 59,445 The following table presents lease obligations recorded in the statement of financial position: January 2, 2022 January 3, 2021 Current $ 15,290 $ 15,884 Non-current 93,812 66,580 $ 109,102 $ 82,464 The following table presents the undiscounted future minimum lease payments under non-cancellable leases (including short term leases) as at January 2, 2022: January 2, 2022 Less than one year $ 21,221 One to five years 50,585 More than five years 61,355 $ 133,161 |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
List Of Accounting Policies [Abstract] | |
Disclosure of interests in subsidiaries | The Company’s principal subsidiaries, their jurisdiction of incorporation, and the Company’s percentage ownership share of each are as follows: Subsidiary Jurisdiction of incorporation Ownership Gildan Activewear SRL Barbados 100 % Gildan Yarns, LLC Delaware 100 % Gildan USA Inc. Delaware 100 % Gildan Honduras Properties, S. de R.L. Honduras 100 % Frontier Yarns, Inc. North Carolina 100 % Gildan Apparel (Canada) LP Ontario 100 % Gildan Activewear (UK) Limited United Kingdom 100 % Gildan Activewear EU SRL Belgium 100 % Gildan Textiles de Sula, S. de R.L. Honduras 100 % G.A.B. Limited Bangladesh 100 % Gildan Activewear Honduras Textile Company, S. de R.L. Honduras 100 % Gildan Activewear (Eden) Inc. North Carolina 100 % Gildan Hosiery Rio Nance, S. de R.L. Honduras 100 % Gildan Mayan Textiles, S. de R.L. Honduras 100 % Gildan Charleston Inc. Delaware 100 % Gildan Activewear Dominican Republic Textile Company Inc. Barbados 100 % Gildan Honduras Trading, S. de R. L. Honduras 100 % Gildan Choloma Textiles, S. de R. L. Honduras 100 % |
Disclosure of detailed information about property, plant and equipment | The cost of property, plant and equipment less its residual value, if any, is depreciated on a straight-line basis over the following estimated useful lives: Asset Useful life Buildings and improvements 5 to 40 years Manufacturing equipment 2 to 20 years Other equipment 3 to 10 years Land Buildings and improvements Manufacturing equipment Other equipment Assets not yet utilized in operations Total 2021 Cost Balance, January 3, 2021 $ 123,549 $ 571,464 $ 1,070,612 $ 174,760 $ 16,156 $ 1,956,541 Additions 3,519 4,008 44,381 5,914 73,679 131,501 Additions through business acquisitions — 13,397 50,817 92 — 64,306 Transfers — 4,579 8,320 276 (13,175) — Disposals (1) — (10,805) (65,002) (9,895) — (85,702) Balance, January 2, 2022 $ 127,068 $ 582,643 $ 1,109,128 $ 171,147 $ 76,660 $ 2,066,646 Accumulated depreciation Balance, January 3, 2021 $ — $ 230,088 $ 695,979 $ 133,674 $ — $ 1,059,741 Depreciation — 22,696 58,435 11,045 — 92,176 Disposals (1) — (7,813) (54,426) (8,139) — (70,378) Write-downs and impairments — — — 34 — 34 Balance, January 2, 2022 $ — $ 244,971 $ 699,988 $ 136,614 $ — $ 1,081,573 Carrying amount, January 2, 2022 $ 127,068 $ 337,672 $ 409,140 $ 34,533 $ 76,660 $ 985,073 Land Buildings and improvements Manufacturing equipment Other equipment Assets not yet utilized in operations Total 2020 Cost Balance, December 29, 2019 $ 120,478 $ 558,847 $ 1,149,837 $ 171,361 $ 37,670 $ 2,038,193 Additions 3,812 8,549 10,826 5,657 13,794 42,638 Transfers — 5,506 28,441 1,361 (35,308) — Disposals (1) (741) (1,438) (118,492) (3,619) — (124,290) Balance, January 3, 2021 $ 123,549 $ 571,464 $ 1,070,612 $ 174,760 $ 16,156 $ 1,956,541 Accumulated depreciation Balance, December 29, 2019 $ — $ 205,834 $ 714,478 $ 122,901 $ — $ 1,043,213 Depreciation — 24,537 70,497 13,418 — 108,452 Disposals (1) — (304) (94,883) (2,750) — (97,937) Write-downs and impairments — 21 5,887 105 — 6,013 Balance, January 3, 2021 $ — $ 230,088 $ 695,979 $ 133,674 $ — $ 1,059,741 Carrying amount, January 3, 2021 $ 123,549 $ 341,376 $ 374,633 $ 41,086 $ 16,156 $ 896,800 2021 2020 Depreciation of property, plant and equipment (note 9) $ 92,176 $ 108,452 Depreciation of right-of-use assets (note 10) 13,973 14,656 Adjustment for the variation of depreciation included in inventories at the beginning and end of the year 11,177 3,676 Amortization of intangible assets, excluding software (note 11) 12,818 14,302 Amortization of software (note 11) 5,258 6,104 Depreciation and amortization included in net earnings $ 135,402 $ 147,190 |
Disclosure of detailed information about intangible assets | Intangible assets with finite lives are amortized on a straight-line basis over the following estimated useful lives: Asset Useful life Customer contracts and customer relationships 7 to 20 years License agreements 3 to 10 years Computer software 4 to 7 years Trademarks with a finite life 5 years Non-compete agreements 2 years Intangible assets: 2021 Customer contracts and customer relationships Trademarks License agreements Computer software Non-compete agreements Total Cost Balance, January 3, 2021 $ 224,489 $ 226,172 $ 72,796 $ 64,295 $ 1,790 $ 589,542 Additions — — — 3,635 — 3,635 Disposals — — — (773) — (773) Balance, January 2, 2022 $ 224,489 $ 226,172 $ 72,796 $ 67,157 $ 1,790 $ 592,404 Accumulated amortization Balance, January 3, 2021 $ 142,131 $ 46,351 $ 64,347 $ 45,022 $ 1,790 $ 299,641 Amortization 9,944 292 2,582 5,258 — 18,076 Disposals — — — (484) — (484) (Impairment reversal, net of write-downs) (3,943) (27,516) — — — (31,459) Balance, January 2, 2022 $ 148,132 $ 19,127 $ 66,929 $ 49,796 $ 1,790 $ 285,774 Carrying amount, January 2, 2022 $ 76,357 $ 207,045 $ 5,867 $ 17,361 $ — $ 306,630 2020 Customer contracts and customer relationships Trademarks License agreements Computer software Non-compete agreements Total Cost Balance, December 29, 2019 $ 224,489 $ 226,172 $ 72,750 $ 69,123 $ 1,790 $ 594,324 Additions — — 46 3,113 — 3,159 Disposals — — — (7,941) — (7,941) Balance, January 3, 2021 $ 224,489 $ 226,172 $ 72,796 $ 64,295 $ 1,790 $ 589,542 Accumulated amortization Balance, December 29, 2019 $ 101,844 $ 2,508 $ 61,415 $ 42,903 $ 1,790 $ 210,460 Amortization 10,670 700 2,932 6,104 — 20,406 Disposals — — — (3,985) — (3,985) Write-downs and impairments 29,617 43,143 — — — 72,760 Balance, January 3, 2021 $ 142,131 $ 46,351 $ 64,347 $ 45,022 $ 1,790 $ 299,641 Carrying amount, January 3, 2021 $ 82,358 $ 179,821 $ 8,449 $ 19,273 $ — $ 289,901 2021 2020 Depreciation of property, plant and equipment (note 9) $ 92,176 $ 108,452 Depreciation of right-of-use assets (note 10) 13,973 14,656 Adjustment for the variation of depreciation included in inventories at the beginning and end of the year 11,177 3,676 Amortization of intangible assets, excluding software (note 11) 12,818 14,302 Amortization of software (note 11) 5,258 6,104 Depreciation and amortization included in net earnings $ 135,402 $ 147,190 |
BUSINESS ACQUISITIONS (Tables)
BUSINESS ACQUISITIONS (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Business Combinations1 [Abstract] | |
Disclosure of detailed information about business combinations | The preliminary determination of the fair value of net assets acquired and liabilities assumed arising from the acquisition are as follows: Assets acquired: Inventories $ 23,799 Prepaid expenses, deposits and other current assets (1) 29,845 Property, plant and equipment 64,306 Right-of-use assets 43,539 Other non-current assets 9 161,498 Liabilities assumed: Accounts payable and accrued liabilities (30,191) Current portion of lease obligations (1,940) Lease obligations (41,599) Deferred income taxes (979) (74,709) Goodwill 77,179 Net assets acquired at fair value $ 163,968 Cash consideration paid at closing, net of cash acquired 167,040 Settlement of pre-existing relationships (3,072) $ 163,968 |
TRADE ACCOUNTS RECEIVABLE (Tabl
TRADE ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Schedule of trade accounts receivable | TRADE ACCOUNTS RECEIVABLE: January 2, 2022 January 3, 2021 Trade accounts receivable $ 343,671 $ 215,474 Allowance for expected credit losses (13,704) (18,994) $ 329,967 $ 196,480 The movement in the allowance for expected credit losses in respect of trade receivables was as follows: 2021 2020 Balance, beginning of fiscal year $ (18,994) $ (7,184) Reversal of impairment (Impairment) of trade accounts receivable 2,617 (15,453) Write-off of trade accounts receivable 2,673 3,643 Balance, end of fiscal year $ (13,704) $ (18,994) |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Inventories [Abstract] | |
Schedule of inventory current | INVENTORIES: January 2, 2022 January 3, 2021 Raw materials and spare parts inventories $ 183,065 $ 124,243 Work in progress 53,482 42,590 Finished goods 537,811 561,159 $ 774,358 $ 727,992 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Property, plant and equipment [abstract] | |
Disclosure of detailed information about property, plant and equipment | The cost of property, plant and equipment less its residual value, if any, is depreciated on a straight-line basis over the following estimated useful lives: Asset Useful life Buildings and improvements 5 to 40 years Manufacturing equipment 2 to 20 years Other equipment 3 to 10 years Land Buildings and improvements Manufacturing equipment Other equipment Assets not yet utilized in operations Total 2021 Cost Balance, January 3, 2021 $ 123,549 $ 571,464 $ 1,070,612 $ 174,760 $ 16,156 $ 1,956,541 Additions 3,519 4,008 44,381 5,914 73,679 131,501 Additions through business acquisitions — 13,397 50,817 92 — 64,306 Transfers — 4,579 8,320 276 (13,175) — Disposals (1) — (10,805) (65,002) (9,895) — (85,702) Balance, January 2, 2022 $ 127,068 $ 582,643 $ 1,109,128 $ 171,147 $ 76,660 $ 2,066,646 Accumulated depreciation Balance, January 3, 2021 $ — $ 230,088 $ 695,979 $ 133,674 $ — $ 1,059,741 Depreciation — 22,696 58,435 11,045 — 92,176 Disposals (1) — (7,813) (54,426) (8,139) — (70,378) Write-downs and impairments — — — 34 — 34 Balance, January 2, 2022 $ — $ 244,971 $ 699,988 $ 136,614 $ — $ 1,081,573 Carrying amount, January 2, 2022 $ 127,068 $ 337,672 $ 409,140 $ 34,533 $ 76,660 $ 985,073 Land Buildings and improvements Manufacturing equipment Other equipment Assets not yet utilized in operations Total 2020 Cost Balance, December 29, 2019 $ 120,478 $ 558,847 $ 1,149,837 $ 171,361 $ 37,670 $ 2,038,193 Additions 3,812 8,549 10,826 5,657 13,794 42,638 Transfers — 5,506 28,441 1,361 (35,308) — Disposals (1) (741) (1,438) (118,492) (3,619) — (124,290) Balance, January 3, 2021 $ 123,549 $ 571,464 $ 1,070,612 $ 174,760 $ 16,156 $ 1,956,541 Accumulated depreciation Balance, December 29, 2019 $ — $ 205,834 $ 714,478 $ 122,901 $ — $ 1,043,213 Depreciation — 24,537 70,497 13,418 — 108,452 Disposals (1) — (304) (94,883) (2,750) — (97,937) Write-downs and impairments — 21 5,887 105 — 6,013 Balance, January 3, 2021 $ — $ 230,088 $ 695,979 $ 133,674 $ — $ 1,059,741 Carrying amount, January 3, 2021 $ 123,549 $ 341,376 $ 374,633 $ 41,086 $ 16,156 $ 896,800 2021 2020 Depreciation of property, plant and equipment (note 9) $ 92,176 $ 108,452 Depreciation of right-of-use assets (note 10) 13,973 14,656 Adjustment for the variation of depreciation included in inventories at the beginning and end of the year 11,177 3,676 Amortization of intangible assets, excluding software (note 11) 12,818 14,302 Amortization of software (note 11) 5,258 6,104 Depreciation and amortization included in net earnings $ 135,402 $ 147,190 |
RIGHT-OF-USE ASSETS AND LEASE_2
RIGHT-OF-USE ASSETS AND LEASE OBLIGATIONS (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Presentation of leases for lessee [abstract] | |
Disclosure of quantitative information about right-of-use assets | The following table presents the right-of-use assets for the Company: 2021 2020 Balance, beginning of fiscal year $ 59,445 $ 73,539 Additions 8,132 16,424 Additions through business acquisitions 43,539 — Write-downs, impairments, and accelerated depreciation (4,696) (15,862) Depreciation (note 21) (13,973) (14,656) Balance, end of fiscal year $ 92,447 $ 59,445 The following table presents lease obligations recorded in the statement of financial position: January 2, 2022 January 3, 2021 Current $ 15,290 $ 15,884 Non-current 93,812 66,580 $ 109,102 $ 82,464 The following table presents the undiscounted future minimum lease payments under non-cancellable leases (including short term leases) as at January 2, 2022: January 2, 2022 Less than one year $ 21,221 One to five years 50,585 More than five years 61,355 $ 133,161 |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL INTANGIBLE ASSETS AND GOODWILL (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Intangible assets [Abstract] | |
Disclosure of detailed information about intangible assets | Intangible assets with finite lives are amortized on a straight-line basis over the following estimated useful lives: Asset Useful life Customer contracts and customer relationships 7 to 20 years License agreements 3 to 10 years Computer software 4 to 7 years Trademarks with a finite life 5 years Non-compete agreements 2 years Intangible assets: 2021 Customer contracts and customer relationships Trademarks License agreements Computer software Non-compete agreements Total Cost Balance, January 3, 2021 $ 224,489 $ 226,172 $ 72,796 $ 64,295 $ 1,790 $ 589,542 Additions — — — 3,635 — 3,635 Disposals — — — (773) — (773) Balance, January 2, 2022 $ 224,489 $ 226,172 $ 72,796 $ 67,157 $ 1,790 $ 592,404 Accumulated amortization Balance, January 3, 2021 $ 142,131 $ 46,351 $ 64,347 $ 45,022 $ 1,790 $ 299,641 Amortization 9,944 292 2,582 5,258 — 18,076 Disposals — — — (484) — (484) (Impairment reversal, net of write-downs) (3,943) (27,516) — — — (31,459) Balance, January 2, 2022 $ 148,132 $ 19,127 $ 66,929 $ 49,796 $ 1,790 $ 285,774 Carrying amount, January 2, 2022 $ 76,357 $ 207,045 $ 5,867 $ 17,361 $ — $ 306,630 2020 Customer contracts and customer relationships Trademarks License agreements Computer software Non-compete agreements Total Cost Balance, December 29, 2019 $ 224,489 $ 226,172 $ 72,750 $ 69,123 $ 1,790 $ 594,324 Additions — — 46 3,113 — 3,159 Disposals — — — (7,941) — (7,941) Balance, January 3, 2021 $ 224,489 $ 226,172 $ 72,796 $ 64,295 $ 1,790 $ 589,542 Accumulated amortization Balance, December 29, 2019 $ 101,844 $ 2,508 $ 61,415 $ 42,903 $ 1,790 $ 210,460 Amortization 10,670 700 2,932 6,104 — 20,406 Disposals — — — (3,985) — (3,985) Write-downs and impairments 29,617 43,143 — — — 72,760 Balance, January 3, 2021 $ 142,131 $ 46,351 $ 64,347 $ 45,022 $ 1,790 $ 299,641 Carrying amount, January 3, 2021 $ 82,358 $ 179,821 $ 8,449 $ 19,273 $ — $ 289,901 2021 2020 Depreciation of property, plant and equipment (note 9) $ 92,176 $ 108,452 Depreciation of right-of-use assets (note 10) 13,973 14,656 Adjustment for the variation of depreciation included in inventories at the beginning and end of the year 11,177 3,676 Amortization of intangible assets, excluding software (note 11) 12,818 14,302 Amortization of software (note 11) 5,258 6,104 Depreciation and amortization included in net earnings $ 135,402 $ 147,190 |
Disclosure of reconciliation of changes in intangible assets and goodwill | Goodwill: 2021 2020 Balance, beginning of fiscal year $ 206,636 $ 227,865 Goodwill acquired 77,179 — Impairment — (21,229) Balance, end of fiscal year $ 283,815 $ 206,636 |
Disclosure of information for cash-generating units | Goodwill acquired through business acquisitions and trademarks with indefinite useful lives have been allocated to the Company's CGUs as follows: January 2, 2022 January 3, 2021 Textile & Sewing: Goodwill $ 283,815 $ 206,636 Definite life intangible assets (excluding computer software) 23,430 27,869 Indefinite life intangible assets 93,400 93,400 $ 400,645 $ 327,905 Hosiery: Goodwill $ — $ — Definite life intangible assets (excluding computer software) 58,794 63,230 Indefinite life intangible assets 113,645 86,129 $ 172,439 $ 149,359 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Financial Instruments [Abstract] | |
Disclosure of detailed information about borrowings | LONG-TERM DEBT: Effective interest rate (1) Principal amount Maturity date January 2, January 3, Revolving long-term bank credit facility, interest at variable U.S. LIBOR-based interest rate plus a spread ranging from 1% to 3% (2) n/a $ — $ — June 2026 Term loan, interest at variable U.S. LIBOR-based interest rate plus a spread ranging from 1% to 3%, payable monthly (3) 2.4% 300,000 300,000 June 2026 Term loan, interest at variable U.S. LIBOR-based interest rate plus a spread ranging from 1.7% to 3%, payable monthly (3) n/a — 400,000 April 2022 Notes payable, interest at fixed rate of 2.70%, payable semi-annually (4) 2.7% 100,000 100,000 August 2023 Notes payable, interest at variable U.S. LIBOR-based interest rate plus a spread of 1.53%, payable quarterly (4) 2.7% 50,000 50,000 August 2023 Notes payable, interest at fixed rate of 2.91%, payable semi-annually (4) 2.9% 100,000 100,000 August 2026 Notes payable, interest at variable U.S. LIBOR-based interest rate plus a spread of 1.57%, payable quarterly (4) 2.9% 50,000 50,000 August 2026 $ 600,000 $ 1,000,000 (1) Represents the annualized effective interest rate for the year ended January 2, 2022, including the cash impact of interest rate swaps, where applicable. (2) The Company’s committed unsecured revolving long-term bank credit facility of $1 billion provides for an annual extension which is subject to the approval of the lenders. The spread added to the U.S. LIBOR-based variable interest rate is a function of the total net debt to EBITDA ratio (as defined in the credit facility agreement and its amendments). In addition, an amount of $51.1 million (January 3, 2021 - $7.2 million) has been committed against this facility to cover various letters of credit. (3) The unsecured term loans are non-revolving and can be prepaid in whole or in part at any time with no penalties. The spread added to the U.S. LIBOR-based variable interest rate is a function of the total net debt to EBITDA ratio (as defined in the term loan agreements and its amendments). (4) The unsecured notes issued for a total aggregate principal amount of $300 million to accredited investors in the U.S. private placement market can be prepaid in whole or in part at any time, subject to the payment of a prepayment penalty as provided for in the Note Purchase Agreement. |
OTHER NON-CURRENT LIABILITIES (
OTHER NON-CURRENT LIABILITIES (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Other noncurrent liabilities | OTHER NON-CURRENT LIABILITIES: January 2, 2022 January 3, 2021 Employee benefit obligation - Statutory severance and pre-notice (a) $ 42,931 $ 19,889 Employee benefit obligation - Defined contribution plan (b) 3,742 3,736 Provisions (c) 13,189 12,240 $ 59,862 $ 35,865 |
Disclosure of net defined benefit liability | Statutory severance and pre-notice obligations: 2021 2020 Obligation, beginning of fiscal year $ 19,889 $ 27,767 Service cost 13,942 16,785 Interest cost 6,562 7,305 Actuarial loss (gain) (1) 21,678 (12,142) Foreign exchange gain (179) (253) Benefits paid (18,961) (19,573) Obligation, end of fiscal year $ 42,931 $ 19,889 |
Disclosure of other provisions | The following table presents the provisions for decommissioning and site restoration costs of the Company: 2021 2020 Balance, beginning of fiscal year $ 12,240 $ 10,790 Changes in estimates made during the fiscal year 796 1,208 Accretion of interest 153 242 Balance, end of fiscal year $ 13,189 $ 12,240 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Financial Instruments [Abstract] | |
Disclosure of detailed information about financial instruments | The carrying amounts and fair values of financial assets and liabilities included in the consolidated statements of financial position are as follows: January 2, 2022 January 3, 2021 Financial assets Amortized cost: Cash and cash equivalents $ 179,246 $ 505,264 Trade accounts receivable 329,967 196,480 Financial assets included in prepaid expenses, deposits and other current assets 69,995 88,781 Long-term non-trade receivables included in other non-current assets 390 1,435 Derivative financial assets included in prepaid expenses, deposits and other current assets 62,758 4,947 Financial liabilities Amortized cost: Accounts payable and accrued liabilities (1) $ 436,073 $ 326,069 Long-term debt - bearing interest at variable rates 400,000 800,000 Long-term debt - bearing interest at fixed rates (2) 200,000 200,000 Derivative financial liabilities included in accounts payable and accrued liabilities 4,328 17,653 1) Accounts payable and accrued liabilities include $18.1 million (January 3, 2021 - $27.6 million) under supply-chain financing arrangements (reverse factoring) with a financial institution, whereby receivables due from the Company to certain suppliers can be collected by the suppliers from a financial institution before their original due date. These balances are classified as accounts payable and accrued liabilities and the related payments as cash flows from operating activities, given the principal business purpose of the arrangement is to provide funding to the supplier and not the Company, the arrangement does not significantly extend the payment terms beyond the normal terms agreed with other suppliers, and no additional deferral or special guarantees to secure the payments are included in the arrangement. Accounts payable and accrued liabilities also include balances payable of $48.8 million (January 3, 2021 - $20.0 million) resulting mainly from a one-week timing difference between the collection of sold receivables and the weekly remittance to our bank counterparty under our receivables purchase agreement that is disclosed in note 7 to these consolidated financial statements. |
Disclosure of detailed information about hedging instruments | The following table summarizes the Company’s commitments to buy and sell foreign currencies (cash flow hedges) as at January 2, 2022: Carrying and fair value Maturity Notional foreign Average Notional Prepaid expenses, Accounts currency amount exchange U.S. $ deposits and other payable and 0 to 12 equivalent rate equivalent current assets accrued liabilities months Forward foreign exchange contracts: Sell GBP/Buy USD 26,752 1.3769 $ 36,834 $ 808 $ (54) $ 754 Sell EUR/Buy USD 29,390 1.1916 35,020 1,592 — 1,592 Sell CAD/Buy USD 39,274 0.8015 31,478 665 — 665 Buy CAD/Sell USD 31,016 0.7840 24,316 92 (88) 4 Sell AUD/Buy USD 8,885 0.7427 6,599 161 (13) 148 Sell MXN/Buy USD 151,791 0.0480 7,279 39 (11) 28 $ 141,526 $ 3,357 $ (166) $ 3,191 The following table summarizes the Company’s commitments to buy and sell foreign currencies (cash flow hedges) as at January 3, 2021: Carrying and fair value Maturity Notional foreign Average Notional Prepaid expenses, Accounts currency amount exchange U.S. $ deposits and other payable and 0 to 12 equivalent rate equivalent current assets accrued liabilities months Forward foreign exchange contracts: Sell GBP/Buy USD 33,069 1.3090 $ 43,287 $ — $ (1,784) $ (1,784) Sell EUR/Buy USD 33,571 1.1816 39,668 — (1,736) (1,736) Sell CAD/Buy USD 45,591 0.7594 34,623 — (1,111) (1,111) Buy CAD/Sell USD 21,669 0.7077 15,336 1,626 — 1,626 Sell AUD/Buy USD 7,387 0.7218 5,332 — (346) (346) Sell MXN/Buy USD 168,727 0.0455 7,683 28 (693) (665) $ 145,929 $ 1,654 $ (5,670) $ (4,016) The following table summarizes the Company's commodity contracts outstanding (cash flow hedges) as at January 2, 2022: Carrying and fair value Maturity Prepaid expenses, Accounts Type of deposits and other payable and 0 to 12 commodity Notional amount (1) current assets accrued liabilities months Forward contracts Cotton 251.0 million pounds $ 56,419 $ — $ 56,419 Swap & option contracts Energy 5.7 million gallons 1,660 (102) 1,558 $ 58,079 $ (102) $ 57,977 (1) Notional amounts are not in thousands. The following table summarizes the Company's commodity contracts outstanding (cash flow hedges) as at January 3, 2021: Carrying and fair value Maturity Prepaid expenses, Accounts Type of deposits and other payable and 0 to 12 commodity Notional amount (1) current assets accrued liabilities months Forward contracts Cotton 16.2 million pounds $ 1,582 $ — $ 1,582 Swap contracts Synthetic fibres 3.9 million pounds — (781) (781) Swap & option contracts Energy 6.4 million gallons 1,300 (258) 1,042 $ 2,882 $ (1,039) $ 1,843 (1) Notional amounts are not in thousands. The following table summarizes the Company’s floating-to-fixed interest rate swap contracts outstanding (cash flow hedges) as at January 2, 2022: Carrying and fair value Notional Prepaid expenses, Accounts amount of Maturity Fixed Floating deposits and other payable and borrowings date Pay / Receive rate rate current assets accrued liabilities Term Loan (1) $ 75,000 April 30, 2023 Pay fixed rate / receive floating rate 2.85 % US LIBOR $ — $ (2,272) 50,000 April 30, 2024 Pay fixed rate / receive floating rate 1.51 % US LIBOR 32 (744) 25,000 April 30, 2025 Pay fixed rate / receive floating rate 1.06 % US LIBOR 167 (154) 50,000 April 30, 2025 Pay fixed rate / receive floating rate 0.78 % US LIBOR 624 — 25,000 June 30, 2026 Pay fixed rate / receive floating rate 1.59 % US LIBOR — (22) 25,000 June 30, 2026 Pay fixed rate / receive floating rate 1.23 % US LIBOR 171 — Unsecured Notes 50,000 August 25, 2023 Pay fixed rate / receive floating rate 1.18 % US LIBOR — (380) 50,000 August 25, 2026 Pay fixed rate / receive floating rate 1.34 % US LIBOR 328 (454) $ 1,322 $ (4,026) (1) The notional amounts for the interest rate swap contracts maturing in 2025 and 2026 are extensions to the $100 million interest rate swap contracts originally entered into related to the $300 million term loan. 15. FINANCIAL INSTRUMENTS (continued): (b) Derivative financial instruments - hedge accounting (continued): The following table summarizes the Company’s floating-to-fixed interest rate swap contracts outstanding (cash flow hedges) as at January 3, 2021: Carrying and fair value Notional Prepaid expenses, Accounts amount of Maturity Fixed Floating deposits and other payable and borrowings date Pay / Receive rate rate current assets accrued liabilities Term Loan (1) $ 150,000 June 17, 2021 Pay fixed rate / receive floating rate 0.96 % US LIBOR $ — $ (630) 25,000 April 6, 2022 Pay fixed rate / receive floating rate 0.27 % US LIBOR — (48) 75,000 April 30, 2023 Pay fixed rate / receive floating rate 2.85 % US LIBOR — (3,800) 50,000 April 30, 2024 Pay fixed rate / receive floating rate 1.51 % US LIBOR — (1,886) 25,000 April 30, 2025 Pay fixed rate / receive floating rate 1.06 % US LIBOR — (755) 25,000 May 30, 2025 Pay fixed rate / receive floating rate 0.47 % US LIBOR — (30) Unsecured Notes 50,000 August 25, 2023 Pay fixed rate / receive floating rate 1.18 % US LIBOR — (1,330) 50,000 August 25, 2026 Pay fixed rate / receive floating rate 1.34 % US LIBOR — (2,465) $ — $ (10,944) (1) The notional amounts for the interest rate swap contracts maturing in 2023, 2024, and 2025 were extensions to the $150 million interest rate swap contracts originally entered into related to the $300 million term loan. |
Disclosure of detailed information about hedged items | The following table summarizes the Company’s hedged items as at January 2, 2022: Change in Carrying amount of value used for Cash flow the hedged item calculating hedge hedge reserve Assets Liabilities ineffectiveness (AOCI) Cash flow hedges: Foreign currency risk: Forecast sales $ — $ — $ 2,554 $ (2,554) Forecast expenses — — 4 (4) Commodity risk: Forecast purchases — — 64,813 (64,813) Interest rate risk: Forecast interest payments — — (2,562) 2,562 $ — $ — $ 64,809 $ (64,809) No ineffectiveness was recognized in net earnings as the change in value of the hedging instrument used for calculating ineffectiveness was the same or smaller as the change in value of the hedged items used for calculating the ineffectiveness. 15. FINANCIAL INSTRUMENTS (continued): (b) Derivative financial instruments - hedge accounting (continued): The following table summarizes the Company’s hedged items as at January 3, 2021: Change in Carrying amount of value used for Cash flow the hedged item calculating hedge hedge reserve Assets Liabilities ineffectiveness (AOCI) Cash flow hedges: Foreign currency risk: Forecast sales $ — $ — $ (4,104) $ 4,104 Forecast expenses — — 1,626 (1,626) Commodity risk: Forecast purchases — — 4,205 (4,205) Interest rate risk: Forecast interest payments — — (10,765) 10,765 $ — $ — $ (9,038) $ 9,038 |
Disclosure of detailed information about financial expenses, net | Financial expenses, net: 2021 2020 Interest expense on financial liabilities recorded at amortized cost (1) $ 14,923 $ 30,205 Bank and other financial charges (2) 8,823 14,627 Interest accretion on discounted lease obligations 2,650 3,227 Interest accretion on discounted provisions 153 242 Foreign exchange loss 782 229 $ 27,331 $ 48,530 (1) Net of capitalized borrowing costs of $1.6 million (2020 - $1.6 million). (2) Fiscal 2020 includes upfront costs of $3.9 million for the June 2020 amendments of the loans and notes agreements (note 12). |
Disclosure of information about amounts that affected statement of comprehensive income as result of hedge accounting | Hedging components of other comprehensive income (“OCI”): 2021 2020 Net gain (loss) on derivatives designated as cash flow hedges: Foreign currency risk $ 3,599 $ 502 Commodity price risk 83,130 (12,699) Interest rate risk 8,203 (12,381) Income taxes (36) (5) Amounts reclassified from OCI to inventory, related to commodity (22,515) 9,837 Amounts reclassified from OCI to net earnings, related to foreign currency risk, interest rate risk, and commodity risk, and included in: Net sales 3,326 (242) Cost of sales — 8,483 Selling, general and administrative expenses (1,992) 331 Financial expenses, net 146 (2,358) Income taxes (14) 29 Cash flow hedging gain (loss) $ 73,847 $ (8,503) |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Share-based Payment Arrangements [Abstract] | |
Disclosure of number and weighted average exercise prices of share options | Outstanding stock options were as follows: Stock options issued in Canadian dollars and to be exercised on the TSX: Number Weighted exercise price (CA$) Stock options outstanding, December 29, 2019 1,550 $ 35.65 Changes in outstanding stock options: Exercised (87) 24.22 Stock options outstanding, January 3, 2021 1,463 36.33 Changes in outstanding stock options: Exercised (227) 33.48 Stock options outstanding, January 2, 2022 1,236 $ 36.85 Stock options issued in U.S. dollars and to be exercised on the NYSE: Number Weighted exercise price (US$) Stock options outstanding, December 29, 2019 669 $ 29.01 Changes in outstanding stock options: Granted 1,387 26.43 Stock options outstanding, January 3, 2021 2,056 27.27 Changes in outstanding stock options: Forfeited (68) 29.01 Stock options outstanding, January 2, 2022 1,988 $ 27.21 2020 Exercise price US$26.43 Risk-free interest rate 0.39% Expected volatility 36.47% Expected life 5 years Expected dividend yield 2.57% No new grants during fiscal 2021. |
Disclosure of range of exercise prices of outstanding share options | The following table summarizes information about stock options issued and outstanding and exercisable at January 2, 2022: Options issued and outstanding Options exercisable Exercise prices Number Remaining contractual life (yrs) Number CA$30.46 43 0 43 CA$33.01 463 2 463 CA$38.01 447 1 447 CA$42.27 283 4 283 1,236 1,236 US$20.77 537 6 — US$29.01 601 3 434 US$30.00 850 6 — 3,224 1,670 |
Disclosure of number and weighted average exercise prices of other equity instruments | The following table summarizes the assumptions used in the option pricing model for the SARs granted in fiscal 2020: 2020 Exercise price US$30 Risk-free interest rate 0.22% Expected volatility 43.86% Expected life 3 years Expected dividend yield 2.32% No new grants during fiscal 2021. Outstanding Treasury RSUs were as follows: Number Weighted average fair value per unit Treasury RSUs outstanding, December 29, 2019 114 $ 31.42 Changes in outstanding Treasury RSUs: Granted for dividends declared 1 12.58 Settled through the issuance of common shares (72) 31.65 Treasury RSUs outstanding, January 3, 2021 43 30.47 Changes in outstanding Treasury RSUs: Granted 5 36.45 Granted for dividends declared 1 37.93 Settled through the issuance of common shares (5) 29.68 Forfeited (21) 29.95 Treasury RSUs outstanding, January 2, 2022 23 $ 32.55 Outstanding non-Treasury RSUs were as follows: Number Weighted average fair value per unit Non-Treasury RSUs outstanding, December 29, 2019 1,422 $ 31.42 Changes in outstanding non-Treasury RSUs: Granted 967 25.47 Granted for dividends declared 25 12.58 Settled - common shares (128) 29.06 Settled - payment of withholding taxes (67) 29.16 Forfeited (342) 25.70 Non-Treasury RSUs outstanding, January 3, 2021 1,877 29.38 Changes in outstanding non-Treasury RSUs: Granted 733 30.38 Granted for dividends declared 25 37.69 Settled - common shares (127) 25.14 Settled - payment of withholding taxes (70) 25.48 Forfeited (492) 32.46 Non-Treasury RSUs outstanding, January 2, 2022 1,946 $ 29.50 Changes in outstanding DSUs were as follows: 2021 2020 DSUs outstanding, beginning of fiscal year 301 235 Granted 58 90 Granted for dividends declared 4 2 Redeemed (50) (26) DSUs outstanding, end of fiscal year 313 301 |
Disclosure of number and weighted average remaining contractual life of outstanding share options | The following table summarizes information about stock options issued and outstanding and exercisable at January 2, 2022: Options issued and outstanding Options exercisable Exercise prices Number Remaining contractual life (yrs) Number CA$30.46 43 0 43 CA$33.01 463 2 463 CA$38.01 447 1 447 CA$42.27 283 4 283 1,236 1,236 US$20.77 537 6 — US$29.01 601 3 434 US$30.00 850 6 — 3,224 1,670 |
SUPPLEMENTARY INFORMATION REL_2
SUPPLEMENTARY INFORMATION RELATING TO THE NATURE OF EXPENSES (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Analysis of income and expense [abstract] | |
Disclosure of selling, general and administrative expense | Selling, general and administrative expenses: 2021 2020 Selling expenses $ 68,591 $ 76,327 Administrative expenses 147,260 101,492 Distribution expenses 98,320 94,487 $ 314,171 $ 272,306 |
Disclosure of classes of employee benefits expense | Employee benefit expenses: 2021 2020 Salaries, wages and other short-term employee benefits $ 501,036 $ 423,335 Share-based payments 37,660 1,954 Post-employment benefits 28,085 44,645 $ 566,781 $ 469,934 |
RESTRUCTURING AND ACQUISITION_2
RESTRUCTURING AND ACQUISITION-RELATED COSTS (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Analysis of income and expense [abstract] | |
Restructuring and related costs and disclosure of transactions recognized separately from acquisition | Restructuring and acquisition-related costs are presented in the following table, and are comprised of costs directly related to significant exit activities, including the closure of business locations or the relocation of business activities, significant changes in management structure, as well as transaction, exit, and integration costs incurred pursuant to business acquisitions. 2021 2020 Employee termination and benefit costs $ 251 $ 10,900 Exit, relocation and other costs 3,312 13,321 Net loss on disposal and write-downs of property, plant and equipment, right-of-use 3,136 23,933 Acquisition-related transaction costs 1,526 — $ 8,225 $ 48,154 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Income Taxes [Abstract] | |
Reconciliation of accounting profit multiplied by applicable tax rates and average effective tax rate | The reasons for the difference and the related tax effects are as follows: 2021 2020 Earnings (loss) before income taxes $ 624,558 $ (229,373) Applicable statutory tax rate 26.5 % 26.5 % Income taxes at applicable statutory rate 165,508 (60,784) Increase (decrease) in income taxes resulting from: Effect of different tax rates and additional income taxes in other jurisdictions (157,321) 36,397 Income tax and other adjustments related to prior taxation years 73 (1,417) Recognition of previously de-recognized tax benefits related to tax losses and (8,593) (5,150) Non-recognition of tax benefits related to tax losses and temporary differences 11,035 22,451 Effect of non-deductible expenses and other 6,673 4,412 Total income tax expense (recovery) $ 17,375 $ (4,091) Average effective tax rate 2.8 % 1.8 % |
Major components of tax expense (income) | The details of income tax expense are as follows: 2021 2020 Current income taxes, includes a recovery of $1,061 (2020 - $1,511) relating to prior taxation years $ 18,340 $ 3,633 Deferred income taxes: Origination and reversal of temporary differences (4,541) (25,119) Recognition of previously de-recognized tax benefits related to tax losses and (8,593) (5,150) Non-recognition of tax benefits related to tax losses and temporary differences 11,035 22,451 Adjustments relating to prior taxation years 1,134 94 (965) (7,724) Total income tax expense (recovery) $ 17,375 $ (4,091) |
Disclosure of temporary difference, unused tax losses and unused tax credits | Significant components of the Company’s deferred income tax assets and liabilities relate to the following temporary differences and unused tax losses: January 2, 2022 January 3, 2021 Deferred income tax assets: Non-capital losses $ 102,138 $ 99,659 Non-deductible reserves and accruals 26,304 28,211 Property, plant and equipment 16,434 15,319 Other items 7,730 7,455 152,606 150,644 Unrecognized deferred income tax assets (102,749) (100,424) Deferred income tax assets $ 49,857 $ 50,220 Deferred income tax liabilities: Property, plant and equipment $ (34,668) $ (28,643) Intangible assets 2,537 (3,888) Deferred income tax liabilities $ (32,131) $ (32,531) Deferred income taxes $ 17,726 $ 17,689 The details of changes to deferred income tax assets and liabilities were as follows: 2021 2020 Balance, beginning of fiscal year, net $ 17,689 $ 9,917 Recognized in the statements of earnings: Non-capital losses 3,462 155 Non-deductible reserves and accruals (1,944) 16,044 Property, plant and equipment (4,909) 4,400 Intangible assets 6,425 5,344 Other 274 (825) Unrecognized deferred income tax assets (2,343) (17,394) 965 7,724 Business acquisitions (979) — Other 51 48 Balance, end of fiscal year, net $ 17,726 $ 17,689 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Earnings per share [abstract] | |
Earnings per share | Reconciliation between basic and diluted earnings (loss) per share is as follows: 2021 2020 Net earnings (loss) - basic and diluted $ 607,183 $ (225,282) Basic earnings (loss) per share: Basic weighted average number of common shares outstanding 197,014 198,361 Basic earnings (loss) per share $ 3.08 $ (1.14) Diluted earnings (loss) per share: Basic weighted average number of common shares outstanding 197,014 198,361 Plus dilutive impact of stock options, Treasury RSUs, and common shares held in trust 581 — Diluted weighted average number of common shares outstanding 197,595 198,361 Diluted earnings (loss) per share $ 3.07 $ (1.14) |
DEPRECIATION AND AMORTIZATION (
DEPRECIATION AND AMORTIZATION (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Depreciation and amortisation expense [abstract] | |
Disclosure of detailed information about property, plant and equipment | The cost of property, plant and equipment less its residual value, if any, is depreciated on a straight-line basis over the following estimated useful lives: Asset Useful life Buildings and improvements 5 to 40 years Manufacturing equipment 2 to 20 years Other equipment 3 to 10 years Land Buildings and improvements Manufacturing equipment Other equipment Assets not yet utilized in operations Total 2021 Cost Balance, January 3, 2021 $ 123,549 $ 571,464 $ 1,070,612 $ 174,760 $ 16,156 $ 1,956,541 Additions 3,519 4,008 44,381 5,914 73,679 131,501 Additions through business acquisitions — 13,397 50,817 92 — 64,306 Transfers — 4,579 8,320 276 (13,175) — Disposals (1) — (10,805) (65,002) (9,895) — (85,702) Balance, January 2, 2022 $ 127,068 $ 582,643 $ 1,109,128 $ 171,147 $ 76,660 $ 2,066,646 Accumulated depreciation Balance, January 3, 2021 $ — $ 230,088 $ 695,979 $ 133,674 $ — $ 1,059,741 Depreciation — 22,696 58,435 11,045 — 92,176 Disposals (1) — (7,813) (54,426) (8,139) — (70,378) Write-downs and impairments — — — 34 — 34 Balance, January 2, 2022 $ — $ 244,971 $ 699,988 $ 136,614 $ — $ 1,081,573 Carrying amount, January 2, 2022 $ 127,068 $ 337,672 $ 409,140 $ 34,533 $ 76,660 $ 985,073 Land Buildings and improvements Manufacturing equipment Other equipment Assets not yet utilized in operations Total 2020 Cost Balance, December 29, 2019 $ 120,478 $ 558,847 $ 1,149,837 $ 171,361 $ 37,670 $ 2,038,193 Additions 3,812 8,549 10,826 5,657 13,794 42,638 Transfers — 5,506 28,441 1,361 (35,308) — Disposals (1) (741) (1,438) (118,492) (3,619) — (124,290) Balance, January 3, 2021 $ 123,549 $ 571,464 $ 1,070,612 $ 174,760 $ 16,156 $ 1,956,541 Accumulated depreciation Balance, December 29, 2019 $ — $ 205,834 $ 714,478 $ 122,901 $ — $ 1,043,213 Depreciation — 24,537 70,497 13,418 — 108,452 Disposals (1) — (304) (94,883) (2,750) — (97,937) Write-downs and impairments — 21 5,887 105 — 6,013 Balance, January 3, 2021 $ — $ 230,088 $ 695,979 $ 133,674 $ — $ 1,059,741 Carrying amount, January 3, 2021 $ 123,549 $ 341,376 $ 374,633 $ 41,086 $ 16,156 $ 896,800 2021 2020 Depreciation of property, plant and equipment (note 9) $ 92,176 $ 108,452 Depreciation of right-of-use assets (note 10) 13,973 14,656 Adjustment for the variation of depreciation included in inventories at the beginning and end of the year 11,177 3,676 Amortization of intangible assets, excluding software (note 11) 12,818 14,302 Amortization of software (note 11) 5,258 6,104 Depreciation and amortization included in net earnings $ 135,402 $ 147,190 |
Disclosure of detailed information about intangible assets | Intangible assets with finite lives are amortized on a straight-line basis over the following estimated useful lives: Asset Useful life Customer contracts and customer relationships 7 to 20 years License agreements 3 to 10 years Computer software 4 to 7 years Trademarks with a finite life 5 years Non-compete agreements 2 years Intangible assets: 2021 Customer contracts and customer relationships Trademarks License agreements Computer software Non-compete agreements Total Cost Balance, January 3, 2021 $ 224,489 $ 226,172 $ 72,796 $ 64,295 $ 1,790 $ 589,542 Additions — — — 3,635 — 3,635 Disposals — — — (773) — (773) Balance, January 2, 2022 $ 224,489 $ 226,172 $ 72,796 $ 67,157 $ 1,790 $ 592,404 Accumulated amortization Balance, January 3, 2021 $ 142,131 $ 46,351 $ 64,347 $ 45,022 $ 1,790 $ 299,641 Amortization 9,944 292 2,582 5,258 — 18,076 Disposals — — — (484) — (484) (Impairment reversal, net of write-downs) (3,943) (27,516) — — — (31,459) Balance, January 2, 2022 $ 148,132 $ 19,127 $ 66,929 $ 49,796 $ 1,790 $ 285,774 Carrying amount, January 2, 2022 $ 76,357 $ 207,045 $ 5,867 $ 17,361 $ — $ 306,630 2020 Customer contracts and customer relationships Trademarks License agreements Computer software Non-compete agreements Total Cost Balance, December 29, 2019 $ 224,489 $ 226,172 $ 72,750 $ 69,123 $ 1,790 $ 594,324 Additions — — 46 3,113 — 3,159 Disposals — — — (7,941) — (7,941) Balance, January 3, 2021 $ 224,489 $ 226,172 $ 72,796 $ 64,295 $ 1,790 $ 589,542 Accumulated amortization Balance, December 29, 2019 $ 101,844 $ 2,508 $ 61,415 $ 42,903 $ 1,790 $ 210,460 Amortization 10,670 700 2,932 6,104 — 20,406 Disposals — — — (3,985) — (3,985) Write-downs and impairments 29,617 43,143 — — — 72,760 Balance, January 3, 2021 $ 142,131 $ 46,351 $ 64,347 $ 45,022 $ 1,790 $ 299,641 Carrying amount, January 3, 2021 $ 82,358 $ 179,821 $ 8,449 $ 19,273 $ — $ 289,901 2021 2020 Depreciation of property, plant and equipment (note 9) $ 92,176 $ 108,452 Depreciation of right-of-use assets (note 10) 13,973 14,656 Adjustment for the variation of depreciation included in inventories at the beginning and end of the year 11,177 3,676 Amortization of intangible assets, excluding software (note 11) 12,818 14,302 Amortization of software (note 11) 5,258 6,104 Depreciation and amortization included in net earnings $ 135,402 $ 147,190 |
SUPPLEMENTAL CASH FLOW DISCLO_2
SUPPLEMENTAL CASH FLOW DISCLOSURE (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Cash flow statement [Abstract] | |
Disclosure of detailed information about adjustments to reconcile profit (loss) explanatory | Adjustments to reconcile net earnings to cash flows from operating activities - other items: 2021 2020 Deferred income taxes (note 19) $ (965) $ (7,724) Unrealized net (gain) loss on foreign exchange and financial derivatives (5,958) 8,439 Timing differences between settlement of financial derivatives and transfer of deferred gains and losses in accumulated OCI to inventory and net earnings 8,012 (1,708) Other non-current assets 2,246 1,530 Other non-current liabilities 2,653 4,154 $ 5,988 $ 4,691 |
Disclosure of detailed information about variations in non-cash transactions explanatory | Variations in non-cash transactions: 2021 2020 Additions to property, plant and equipment and intangible assets included in accounts payable and accrued liabilities $ 4,641 $ (13,751) Proceeds on disposal of property, plant and equipment included in other current assets — (375) Additions to right-of-use assets included in lease obligations 3,504 16,189 Non-cash ascribed value credited to share capital from shares issued or distributed pursuant to vesting of restricted share units and exercise of stock options 4,515 7,552 Deferred compensation credited to contributed surplus (2,075) — Non-cash ascribed value credited to contributed surplus for dividends attributed to restricted share units 943 336 |
Changes in non-cash working capital balances | Changes in non-cash working capital balances: 2021 2020 Trade accounts receivable $ (135,103) $ 125,150 Income taxes 12,577 (5,747) Inventories (33,744) 320,384 Prepaid expenses, deposits and other current assets (18,964) 18,199 Accounts payable and accrued liabilities 78,495 (62,476) $ (96,739) $ 395,510 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Related Party [Abstract] | |
Disclosure of transactions between related parties | The amount for compensation expense recognized in net earnings for key management personnel, including amounts for an executive who retired during fiscal 2021, was as follows: 2021 2020 Short-term employee benefits $ 12,296 $ 7,754 Post-employment benefits 907 170 Share-based payments 30,460 1,721 $ 43,663 $ 9,645 The amounts included in accounts payable and accrued liabilities for share-based compensation awards to key management personnel were as follows: January 2, 2022 January 3, 2021 DSUs $ 13,280 $ 8,433 |
DISAGGREGATION OF REVENUE (Tabl
DISAGGREGATION OF REVENUE (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Disclosure of disaggregation of revenue from contracts with customers [abstract] | |
Disclosure of disaggregation of revenue from contracts with customers | Net sales by major product group were as follows: 2021 2020 Activewear $ 2,364,740 $ 1,498,408 Hosiery and underwear 557,830 482,868 $ 2,922,570 $ 1,981,276 Net sales were derived from customers located in the following geographic areas: 2021 2020 United States $ 2,526,552 $ 1,696,872 Canada 114,800 76,163 International 281,218 208,241 $ 2,922,570 $ 1,981,276 |
ENTITY-WIDE DISCLOSURES ENTITY-
ENTITY-WIDE DISCLOSURES ENTITY-WIDE DISCLOSURES (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Entity-wide disclosures [Abstract] | |
Disclosure of geographical areas | Property, plant and equipment, right-of-use-assets, intangible assets, and goodwill, are allocated to geographic areas as follows: January 2, 2022 January 3, 2021 United States $ 602,120 $ 431,403 Canada 69,939 95,585 Honduras 346,256 323,617 Caribbean 486,876 448,278 Asia-Pacific 129,926 114,785 Other 32,848 39,114 $ 1,667,965 $ 1,452,782 |
Disclosure of major customers | Customers accounting for at least 10% of total net sales for the fiscal years ended January 2, 2022 and January 3, 2021 were as follows: 2021 2020 Customer A 15.9 % 12.3 % Customer B 13.9 % 13.1 % Customer C 7.9 % 10.4 % |
FINANCIAL RISK MANAGEMENT - Nar
FINANCIAL RISK MANAGEMENT - Narrative (Details) | 12 Months Ended | |
Jan. 02, 2022USD ($)$ / lb | Jan. 03, 2021USD ($) | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Receivables purchase agreement, maximum of sale of accounts receivables | $ 225,000,000 | |
Sensitivity analysis for types of market risk, reasonably possible change in risk variable, per unit | $ / lb | 0.01 | |
SSensitivity analysis for types of market risk, reasonably possible change in risk variable, impact on material costs | $ 6,000,000 | |
Long-term debt (note 12) | $ 600,000,000 | $ 1,000,000,000 |
Sensitivity analysis for types of market risk, reasonably possible change in risk variable, percent | 50.00% | |
Sensitivity analysis for types of market risk, reasonably possible change in risk variable, impact on earnings | $ (1,200,000) | |
Term Loan, Interest At Variable U.S. LIBOR-based Interest Rate | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Long-term debt (note 12) | 400,000,000 | |
Term Loan, Interest At Variable U.S. LIBOR-based Interest Rate Plus A Spread Ranging From 1% to 3% Due April 2025 | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Long-term debt (note 12) | 300,000,000 | $ 300,000,000 |
Unsecured Notes Payable | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Long-term debt (note 12) | $ 100,000,000 | |
Debtor Concentration Risk | Ten Largest Trade Debtors | Accounts Receivable Benchmark | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Concentration Risk, Percentage | 78.00% | 76.00% |
Debtor Concentration Risk | Largest Trade Debtor | Accounts Receivable Benchmark | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Concentration Risk, Percentage | 24.00% | 23.00% |
Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Notional amount | $ 400,000,000 | |
Interest rate risk | Cash flow hedges | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Notional amount | 250,000,000 | |
Interest rate risk | Term Loan, Interest At Variable U.S. LIBOR-based Interest Rate Plus A Spread Ranging From 1% to 3% Due April 2025 | Cash flow hedges | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Notional amount | $ 100,000,000 |
FINANCIAL RISK MANAGEMENT - Exp
FINANCIAL RISK MANAGEMENT - Exposure To Credit Risk By Geographic Area (Details) $ in Thousands, € in Millions, ৳ in Millions, ¥ in Millions, ¥ in Millions, £ in Millions, $ in Millions, $ in Millions, $ in Millions, $ in Millions | Jan. 02, 2022USD ($) | Jan. 02, 2022CAD ($) | Jan. 02, 2022GBP (£) | Jan. 02, 2022EUR (€) | Jan. 02, 2022AUD ($) | Jan. 02, 2022MXN ($) | Jan. 02, 2022CNY (¥) | Jan. 02, 2022BDT (৳) | Jan. 02, 2022COP ($) | Jan. 02, 2022JPY (¥) | Jan. 03, 2021USD ($) |
Disclosure Of Trade Receivables [Line Items] | |||||||||||
Trade accounts receivable | $ 343,671 | $ 215,474 | |||||||||
Allowance for expected credit losses | (13,704) | (18,994) | |||||||||
Trade accounts receivable (note 7) | 329,967 | $ 16.9 | £ 0 | € 7 | $ 3.9 | $ 2.6 | ¥ 0.7 | ৳ 0 | $ 0 | ¥ 0 | 196,480 |
Not past due | |||||||||||
Disclosure Of Trade Receivables [Line Items] | |||||||||||
Trade accounts receivable | 318,528 | 173,354 | |||||||||
Past due 0-30 days | |||||||||||
Disclosure Of Trade Receivables [Line Items] | |||||||||||
Trade accounts receivable | 9,352 | 16,572 | |||||||||
Past due 31-60 days | |||||||||||
Disclosure Of Trade Receivables [Line Items] | |||||||||||
Trade accounts receivable | 3,667 | 4,360 | |||||||||
Past due 61-120 days | |||||||||||
Disclosure Of Trade Receivables [Line Items] | |||||||||||
Trade accounts receivable | 2,903 | 5,912 | |||||||||
Past due over 121 days | |||||||||||
Disclosure Of Trade Receivables [Line Items] | |||||||||||
Trade accounts receivable | 9,221 | 15,276 | |||||||||
United States | |||||||||||
Disclosure Of Trade Receivables [Line Items] | |||||||||||
Trade accounts receivable (note 7) | 296,100 | 167,080 | |||||||||
Canada | |||||||||||
Disclosure Of Trade Receivables [Line Items] | |||||||||||
Trade accounts receivable (note 7) | 16,954 | 11,192 | |||||||||
Europe and other | |||||||||||
Disclosure Of Trade Receivables [Line Items] | |||||||||||
Trade accounts receivable (note 7) | $ 16,913 | $ 18,208 |
FINANCIAL RISK MANAGEMENT - Mat
FINANCIAL RISK MANAGEMENT - Maturity Analysis (Details) $ in Millions | Jan. 02, 2022USD ($) |
Disclosure Of Trade Receivables [Line Items] | |
Financial liabilities, carrying value | $ 1,149.5 |
Financial liabilities at amortised cost | 1,566.5 |
Less than one year | |
Disclosure Of Trade Receivables [Line Items] | |
Financial liabilities at amortised cost | 782.4 |
Later than one year and not later than three years [member] | |
Disclosure Of Trade Receivables [Line Items] | |
Financial liabilities at amortised cost | 232.7 |
Later than four years and not later than five years [member] | |
Disclosure Of Trade Receivables [Line Items] | |
Financial liabilities at amortised cost | 487.3 |
More than five years | |
Disclosure Of Trade Receivables [Line Items] | |
Financial liabilities at amortised cost | 64.1 |
Accounts payable and accrued liabilities | |
Disclosure Of Trade Receivables [Line Items] | |
Financial liabilities, carrying value | 440.4 |
Financial liabilities at amortised cost | 440.4 |
Accounts payable and accrued liabilities | Less than one year | |
Disclosure Of Trade Receivables [Line Items] | |
Financial liabilities at amortised cost | 440.4 |
Accounts payable and accrued liabilities | Later than one year and not later than three years [member] | |
Disclosure Of Trade Receivables [Line Items] | |
Financial liabilities at amortised cost | 0 |
Accounts payable and accrued liabilities | Later than four years and not later than five years [member] | |
Disclosure Of Trade Receivables [Line Items] | |
Financial liabilities at amortised cost | 0 |
Accounts payable and accrued liabilities | More than five years | |
Disclosure Of Trade Receivables [Line Items] | |
Financial liabilities at amortised cost | 0 |
Long-term debt | |
Disclosure Of Trade Receivables [Line Items] | |
Financial liabilities, carrying value | 600 |
Financial liabilities at amortised cost | 600 |
Long-term debt | Less than one year | |
Disclosure Of Trade Receivables [Line Items] | |
Financial liabilities at amortised cost | 0 |
Long-term debt | Later than one year and not later than three years [member] | |
Disclosure Of Trade Receivables [Line Items] | |
Financial liabilities at amortised cost | 150 |
Long-term debt | Later than four years and not later than five years [member] | |
Disclosure Of Trade Receivables [Line Items] | |
Financial liabilities at amortised cost | 450 |
Long-term debt | More than five years | |
Disclosure Of Trade Receivables [Line Items] | |
Financial liabilities at amortised cost | 0 |
Purchase and other obligations | |
Disclosure Of Trade Receivables [Line Items] | |
Financial liabilities, carrying value | 0 |
Financial liabilities at amortised cost | 392.9 |
Purchase and other obligations | Less than one year | |
Disclosure Of Trade Receivables [Line Items] | |
Financial liabilities at amortised cost | 320.8 |
Purchase and other obligations | Later than one year and not later than three years [member] | |
Disclosure Of Trade Receivables [Line Items] | |
Financial liabilities at amortised cost | 54.5 |
Purchase and other obligations | Later than four years and not later than five years [member] | |
Disclosure Of Trade Receivables [Line Items] | |
Financial liabilities at amortised cost | 14.9 |
Purchase and other obligations | More than five years | |
Disclosure Of Trade Receivables [Line Items] | |
Financial liabilities at amortised cost | 2.7 |
Lease obligations | |
Disclosure Of Trade Receivables [Line Items] | |
Financial liabilities, carrying value | 109.1 |
Financial liabilities at amortised cost | 133.2 |
Lease obligations | Less than one year | |
Disclosure Of Trade Receivables [Line Items] | |
Financial liabilities at amortised cost | 21.2 |
Lease obligations | Later than one year and not later than three years [member] | |
Disclosure Of Trade Receivables [Line Items] | |
Financial liabilities at amortised cost | 28.2 |
Lease obligations | Later than four years and not later than five years [member] | |
Disclosure Of Trade Receivables [Line Items] | |
Financial liabilities at amortised cost | 22.4 |
Lease obligations | More than five years | |
Disclosure Of Trade Receivables [Line Items] | |
Financial liabilities at amortised cost | $ 61.4 |
FINANCIAL RISK MANAGEMENT - Cre
FINANCIAL RISK MANAGEMENT - Credit Exposures (Details) $ in Thousands, € in Millions, ৳ in Millions, ¥ in Millions, ¥ in Millions, £ in Millions, $ in Millions, $ in Millions, $ in Millions, $ in Millions | 12 Months Ended | ||||||||||||||||||||
Jan. 02, 2022USD ($) | Jan. 02, 2022CAD ($) | Jan. 02, 2022GBP (£) | Jan. 02, 2022EUR (€) | Jan. 02, 2022AUD ($) | Jan. 02, 2022MXN ($) | Jan. 02, 2022CNY (¥) | Jan. 02, 2022BDT (৳) | Jan. 02, 2022COP ($) | Jan. 02, 2022JPY (¥) | Jan. 03, 2021USD ($) | Jan. 02, 2022CAD ($) | Jan. 02, 2022GBP (£) | Jan. 02, 2022EUR (€) | Jan. 02, 2022AUD ($) | Jan. 02, 2022MXN ($) | Jan. 02, 2022CNY (¥) | Jan. 02, 2022BDT (৳) | Jan. 02, 2022COP ($) | Jan. 02, 2022JPY (¥) | Dec. 29, 2019USD ($) | |
Trade and other current receivables [abstract] | |||||||||||||||||||||
Cash and cash equivalents (note 6) | $ 179,246 | $ 505,264 | $ 6.1 | £ 1.7 | € 3.3 | $ 1.8 | $ 5.3 | ¥ 4.5 | ৳ 4.2 | $ 1.9 | ¥ 0.9 | $ 64,126 | |||||||||
Trade accounts receivable (note 7) | 329,967 | 196,480 | 16.9 | 0 | 7 | 3.9 | 2.6 | 0.7 | 0 | 0 | 0 | ||||||||||
Prepaid expenses, deposits and other current assets | 163,662 | 110,105 | 0.4 | 0.3 | 2.1 | 0 | 0.1 | 0.4 | 2.4 | 0.7 | 0 | ||||||||||
Accounts payable and accrued liabilities | (440,401) | (343,722) | $ (21) | £ (0.6) | € (3.7) | $ (0.6) | $ (1) | ¥ (2.9) | ৳ (6.8) | $ 0 | ¥ 0 | ||||||||||
Earnings (loss) before income taxes | $ 624,558 | $ (0.1) | £ (0.1) | € (0.4) | $ (0.3) | $ (0.3) | ¥ (0.1) | ৳ 0 | $ (0.1) | ¥ 0 | $ (229,373) | ||||||||||
Other comprehensive income, before tax | $ 0.3 | £ 1.7 | € 1.6 | $ 0.3 | $ 0.3 | ¥ 0 | ৳ 0 | $ 0 | ¥ 0 |
BASIS OF PREPARATION BASIS OF_2
BASIS OF PREPARATION BASIS OF PREPARATION (Narrative) (Details) - USD ($) | Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 |
Disclosure of initial application of standards or interpretations [line items] | |||
Lease liabilities | $ 109,102,000 | $ 82,464,000 | |
Right-of-use assets | 92,447,000 | $ 59,445,000 | $ 73,539,000 |
Interest rate risk | |||
Disclosure of initial application of standards or interpretations [line items] | |||
Notional amount | 400,000,000 | ||
Interest rate risk | Cash flow hedges | |||
Disclosure of initial application of standards or interpretations [line items] | |||
Notional amount | $ 250,000,000 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES (Ownership percentage of principal subsidiaries) (Details) | 12 Months Ended |
Jan. 02, 2022 | |
Gildan Activewear SRL | |
Disclosure of subsidiaries [line items] | |
Ownership percentage | 100.00% |
Gildan Yarns, LLC | |
Disclosure of subsidiaries [line items] | |
Ownership percentage | 100.00% |
Gildan USA Inc. | |
Disclosure of subsidiaries [line items] | |
Ownership percentage | 100.00% |
Gildan Honduras Properties, S. de R.L. | |
Disclosure of subsidiaries [line items] | |
Ownership percentage | 100.00% |
Frontier Yarns, Inc. | |
Disclosure of subsidiaries [line items] | |
Ownership percentage | 100.00% |
Gildan Apparel (Canada) LP | |
Disclosure of subsidiaries [line items] | |
Ownership percentage | 100.00% |
Gildan Activewear (UK) Limited | |
Disclosure of subsidiaries [line items] | |
Ownership percentage | 100.00% |
Gildan Activewear EU SRL | |
Disclosure of subsidiaries [line items] | |
Ownership percentage | 100.00% |
Gildan Textiles de Sula, S. de R.L. | |
Disclosure of subsidiaries [line items] | |
Ownership percentage | 100.00% |
G.A.B. Limited | |
Disclosure of subsidiaries [line items] | |
Ownership percentage | 100.00% |
Gildan Activewear Honduras Textile Company, S. de R.L. | |
Disclosure of subsidiaries [line items] | |
Ownership percentage | 100.00% |
Gildan Activewear (Eden) Inc. | |
Disclosure of subsidiaries [line items] | |
Ownership percentage | 100.00% |
Gildan Hosiery Rio Nance, S. de R.L. | |
Disclosure of subsidiaries [line items] | |
Ownership percentage | 100.00% |
Gildan Mayan Textiles, S. de R.L. | |
Disclosure of subsidiaries [line items] | |
Ownership percentage | 100.00% |
Gildan Charleston Inc. | |
Disclosure of subsidiaries [line items] | |
Ownership percentage | 100.00% |
Gildan Activewear Dominican Republic Textile Company Inc. | |
Disclosure of subsidiaries [line items] | |
Ownership percentage | 100.00% |
Gildan Honduras Trading, S. de R. L. | |
Disclosure of subsidiaries [line items] | |
Ownership percentage | 100.00% |
Gildan Choloma Textiles, S. de R. L. | |
Disclosure of subsidiaries [line items] | |
Ownership percentage | 100.00% |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES (Property, plant and equipment useful lives) (Details) | 12 Months Ended |
Jan. 02, 2022 | |
Buildings and improvements | Bottom of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 5 years |
Buildings and improvements | Top of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 40 years |
Manufacturing equipment | Bottom of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 2 years |
Manufacturing equipment | Top of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 20 years |
Other equipment | Bottom of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 3 years |
Other equipment | Top of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 10 years |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES (Intangible assets useful lives) (Details) | 12 Months Ended |
Jan. 02, 2022 | |
Customer contracts and customer relationships | Bottom of range [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful life | 7 years |
Customer contracts and customer relationships | Top of range [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful life | 20 years |
License agreements | Bottom of range [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful life | 3 years |
License agreements | Top of range [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful life | 10 years |
Computer software | Bottom of range [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful life | 4 years |
Computer software | Top of range [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful life | 7 years |
Trademarks | |
Disclosure of detailed information about intangible assets [line items] | |
Useful life | 5 years |
Non-compete agreements | |
Disclosure of detailed information about intangible assets [line items] | |
Useful life | 2 years |
SIGNIFICANT ACCOUNTING POLICI_7
SIGNIFICANT ACCOUNTING POLICIES (Cotton and cotton-based yarn procurements) (Details) | 12 Months Ended |
Jan. 02, 2022 | |
List Of Accounting Policies [Abstract] | |
Cotton and cotton-based yarn procurements, commitment period | 18 months |
SIGNIFICANT ACCOUNTING POLICI_8
SIGNIFICANT ACCOUNTING POLICIES SIGNIGICANT ACCOUNTING POLICIES (Leases) (Details) | 12 Months Ended |
Jan. 02, 2022 | |
Bottom of range [member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Lease term, right-of-use asset | 1 year |
Maximum | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Lease term, right-of-use asset | 18 years |
SIGNIFICANT ACCOUNTING POLICI_9
SIGNIFICANT ACCOUNTING POLICIES SIGNIFICANT ACCOUNTING POLICIES (Inventory valuation) (Details) $ in Millions | 12 Months Ended |
Jan. 02, 2022USD ($) | |
Disclosure of provision matrix [line items] | |
Increase (decrease) in allowance for expected credit loss related to ten percent adjustment in expected loss rate for all customers | $ 30.9 |
Increase (decrease) in expected selling price used to establish net realizable value of inventories | 10.00% |
Increase (decrease) in inventories related to ten percent adjustment in expected selling price | $ 2.7 |
Minimum | |
Disclosure of provision matrix [line items] | |
Expected credit loss rate | 1.00% |
Maximum | |
Disclosure of provision matrix [line items] | |
Expected credit loss rate | 10.00% |
NEW ACCOUNTING STANDARDS AND _2
NEW ACCOUNTING STANDARDS AND INTERPRETATIONS NOT YET APPLIED (Details) - Interest rate risk - USD ($) | Jan. 02, 2022 | Jan. 03, 2021 |
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||
Notional amount | $ 400,000,000 | |
Cash flow hedges | ||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||
Notional amount | 250,000,000 | |
Floating-to-fixed interest rate swap, maturing on June 17, 2021 | Cash flow hedges | ||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||
Notional amount | $ 75,000,000 | $ 150,000,000 |
BUSINESS ACQUISITIONS (Narrativ
BUSINESS ACQUISITIONS (Narrative) (Details) - USD ($) | 12 Months Ended | |
Jan. 02, 2022 | Dec. 10, 2021 | |
Disclosure of detailed information about business combination [line items] | ||
Revenue of combined entity as if combination occurred at beginning of period | $ 0 | |
Phoenix Sanford, LLC | ||
Disclosure of detailed information about business combination [line items] | ||
Percentage of voting equity interests acquired | 100.00% | |
Consideration transferred | $ 163,968,000 | |
Net earnings of acquiree | 300,000 | |
Profit (loss) of acquirees as if combination occurred at beginning of period | $ 612,400,000 |
BUSINESS ACQUISITIONS (Provisio
BUSINESS ACQUISITIONS (Provisional amounts recognized for the assets acquired and liabilities assumed) (Details) - USD ($) $ in Thousands | Jan. 02, 2022 | Dec. 10, 2021 | Jan. 03, 2021 | Dec. 29, 2019 |
Acquisition-date fair value of total consideration transferred [abstract] | ||||
Right-of-use assets | $ 92,447 | $ 59,445 | $ 73,539 | |
Goodwill | $ 283,815 | $ 206,636 | ||
Phoenix Sanford, LLC | ||||
Acquisition-date fair value of total consideration transferred [abstract] | ||||
Inventories | $ 23,799 | |||
Prepaid expenses, deposits and other current assets | 29,845 | |||
Property, plant and equipment | 64,306 | |||
Right-of-use assets | 43,539 | |||
Other non-current assets | 9 | |||
Assets acquired | 161,498 | |||
Accounts payable and accrued liabilities | (30,191) | |||
Current portion of lease obligations | (1,940) | |||
Lease obligations | (41,599) | |||
Deferred income taxes | (979) | |||
Liabilities assumed | (74,709) | |||
Goodwill | 77,179 | |||
Net assets acquired at fair value | 163,968 | |||
Cash consideration paid at closing, net of cash acquired | 167,040 | |||
Settlement of pre-existing relationships | (3,072) | |||
Consideration transferred | 163,968 | |||
Trade accounts receivable | $ 26,200 |
TRADE ACCOUNTS RECEIVABLE (Deta
TRADE ACCOUNTS RECEIVABLE (Details) $ in Thousands, € in Millions, ৳ in Millions, ¥ in Millions, ¥ in Millions, £ in Millions, $ in Millions, $ in Millions, $ in Millions, $ in Millions | Jan. 02, 2022USD ($) | Jan. 02, 2022CAD ($) | Jan. 02, 2022GBP (£) | Jan. 02, 2022EUR (€) | Jan. 02, 2022AUD ($) | Jan. 02, 2022MXN ($) | Jan. 02, 2022CNY (¥) | Jan. 02, 2022BDT (৳) | Jan. 02, 2022COP ($) | Jan. 02, 2022JPY (¥) | Jan. 03, 2021USD ($) |
Subclassifications of assets, liabilities and equities [abstract] | |||||||||||
Trade accounts receivable | $ 343,671 | $ 215,474 | |||||||||
Allowance for expected credit losses | (13,704) | (18,994) | |||||||||
Trade accounts receivable | $ 329,967 | $ 16.9 | £ 0 | € 7 | $ 3.9 | $ 2.6 | ¥ 0.7 | ৳ 0 | $ 0 | ¥ 0 | $ 196,480 |
TRADE ACCOUNTS RECEIVABLE (Narr
TRADE ACCOUNTS RECEIVABLE (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 02, 2022 | Jan. 03, 2021 | |
Subclassifications of assets, liabilities and equities [abstract] | ||
Trade accounts receivables being serviced under a receivables purchase agreement | $ 144.9 | $ 145.2 |
Receivables purchase agreement, maximum of sale of accounts receivables | 225 | |
Receivables purchase agreement, difference between carrying amount of receivable sold and cash received | $ 1.6 | $ 2 |
TRADE ACCOUNTS RECEIVABLE (Allo
TRADE ACCOUNTS RECEIVABLE (Allowance for doubtful accounts) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 02, 2022 | Jan. 03, 2021 | |
Changes in allowance account for credit losses of financial assets [abstract] | ||
Balance, beginning of fiscal year | $ (18,994) | |
Reversal of impairment (Impairment) of trade accounts receivable | (2,617) | $ 15,453 |
Balance, end of fiscal year | (13,704) | (18,994) |
Allowance for doubtful accounts | ||
Changes in allowance account for credit losses of financial assets [abstract] | ||
Balance, beginning of fiscal year | (18,994) | (7,184) |
Reversal of impairment (Impairment) of trade accounts receivable | 2,617 | (15,453) |
Write-off of trade accounts receivable | 2,673 | 3,643 |
Balance, end of fiscal year | $ (13,704) | $ (18,994) |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Jan. 02, 2022 | Jan. 03, 2021 |
Inventories [Abstract] | ||
Raw materials and spare parts inventories | $ 183,065 | $ 124,243 |
Work in progress | 53,482 | 42,590 |
Finished goods | 537,811 | 561,159 |
Inventories, total | $ 774,358 | $ 727,992 |
INVENTORIES (Narrative) (Detail
INVENTORIES (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 02, 2022 | Jan. 03, 2021 | |
Inventories [Abstract] | ||
Amount of inventories recognized as an expense | $ 1,910.6 | $ 1,677.3 |
Disclosure of operating segments [line items] | ||
Amount of inventories recognized as an expense | 1,910.6 | 1,677.3 |
Write-downs (reversals of write-downs) of inventories | (1.3) | |
Write-down of inventory to net realizable value | 55.2 | $ 108.1 |
Retail product line | ||
Disclosure of operating segments [line items] | ||
Write-down of inventory to net realizable value | 4.2 | |
Personal protective equipment | ||
Disclosure of operating segments [line items] | ||
Write-down of inventory to net realizable value | $ 6.2 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 02, 2022 | Jan. 03, 2021 | |
Reconciliation of changes in property, plant and equipment [abstract] | ||
Balance, beginning of period | $ 896,800 | |
Depreciation | 92,176 | $ 108,452 |
Balance, end of period | 985,073 | 896,800 |
Land | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Balance, beginning of period | 123,549 | |
Balance, end of period | 127,068 | 123,549 |
Buildings and improvements | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Balance, beginning of period | 341,376 | |
Balance, end of period | 337,672 | 341,376 |
Manufacturing equipment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Balance, beginning of period | 374,633 | |
Balance, end of period | 409,140 | 374,633 |
Other equipment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Balance, beginning of period | 41,086 | |
Balance, end of period | 34,533 | 41,086 |
Assets not yet utilized in operations | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Balance, beginning of period | 16,156 | |
Balance, end of period | 76,660 | 16,156 |
Gross carrying amount | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Balance, beginning of period | 1,956,541 | 2,038,193 |
Additions | 131,501 | 42,638 |
Additions through business acquisitions | 64,306 | |
Transfers | 0 | 0 |
Disposals(1) | (85,702) | (124,290) |
Balance, end of period | 2,066,646 | 1,956,541 |
Disposals(1) | 85,702 | 124,290 |
Gross carrying amount | Land | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Balance, beginning of period | 123,549 | 120,478 |
Additions | 3,519 | 3,812 |
Additions through business acquisitions | 0 | |
Transfers | 0 | 0 |
Disposals(1) | 0 | (741) |
Balance, end of period | 127,068 | 123,549 |
Disposals(1) | 0 | 741 |
Gross carrying amount | Buildings and improvements | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Balance, beginning of period | 571,464 | 558,847 |
Additions | 4,008 | 8,549 |
Additions through business acquisitions | 13,397 | |
Transfers | 4,579 | 5,506 |
Disposals(1) | (10,805) | (1,438) |
Balance, end of period | 582,643 | 571,464 |
Disposals(1) | 10,805 | 1,438 |
Gross carrying amount | Manufacturing equipment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Balance, beginning of period | 1,070,612 | 1,149,837 |
Additions | 44,381 | 10,826 |
Additions through business acquisitions | 50,817 | |
Transfers | 8,320 | 28,441 |
Disposals(1) | (65,002) | (118,492) |
Balance, end of period | 1,109,128 | 1,070,612 |
Disposals(1) | 65,002 | 118,492 |
Gross carrying amount | Other equipment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Balance, beginning of period | 174,760 | 171,361 |
Additions | 5,914 | 5,657 |
Additions through business acquisitions | 92 | |
Transfers | 276 | 1,361 |
Disposals(1) | (9,895) | (3,619) |
Balance, end of period | 171,147 | 174,760 |
Disposals(1) | 9,895 | 3,619 |
Gross carrying amount | Assets not yet utilized in operations | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Balance, beginning of period | 16,156 | 37,670 |
Additions | 73,679 | 13,794 |
Additions through business acquisitions | 0 | |
Transfers | (13,175) | (35,308) |
Disposals(1) | 0 | 0 |
Balance, end of period | 76,660 | 16,156 |
Disposals(1) | 0 | 0 |
Gross carrying amount | Manufacturing equipment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Disposals(1) | (31,500) | (106,800) |
Disposals(1) | 31,500 | 106,800 |
Accumulated depreciation | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Balance, beginning of period | (1,059,741) | (1,043,213) |
Depreciation | 92,176 | 108,452 |
Disposals(1) | 70,378 | 97,937 |
Write-downs and impairments | 34 | 6,013 |
Balance, end of period | (1,081,573) | (1,059,741) |
Disposals(1) | (70,378) | (97,937) |
Accumulated depreciation | Land | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Balance, beginning of period | 0 | 0 |
Depreciation | 0 | 0 |
Disposals(1) | 0 | 0 |
Write-downs and impairments | 0 | 0 |
Balance, end of period | 0 | 0 |
Disposals(1) | 0 | 0 |
Accumulated depreciation | Buildings and improvements | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Balance, beginning of period | (230,088) | (205,834) |
Depreciation | 22,696 | 24,537 |
Disposals(1) | 7,813 | 304 |
Write-downs and impairments | 0 | 21 |
Balance, end of period | (244,971) | (230,088) |
Disposals(1) | (7,813) | (304) |
Accumulated depreciation | Manufacturing equipment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Balance, beginning of period | (695,979) | (714,478) |
Depreciation | 58,435 | 70,497 |
Disposals(1) | 54,426 | 94,883 |
Write-downs and impairments | 0 | 5,887 |
Balance, end of period | (699,988) | (695,979) |
Disposals(1) | (54,426) | (94,883) |
Accumulated depreciation | Other equipment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Balance, beginning of period | (133,674) | (122,901) |
Depreciation | 11,045 | 13,418 |
Disposals(1) | 8,139 | 2,750 |
Write-downs and impairments | 34 | 105 |
Balance, end of period | (136,614) | (133,674) |
Disposals(1) | (8,139) | (2,750) |
Accumulated depreciation | Assets not yet utilized in operations | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Balance, beginning of period | 0 | 0 |
Depreciation | 0 | 0 |
Disposals(1) | 0 | 0 |
Write-downs and impairments | 0 | 0 |
Balance, end of period | 0 | 0 |
Disposals(1) | 0 | 0 |
Accumulated depreciation | Manufacturing equipment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Disposals(1) | 25,200 | 84,200 |
Disposals(1) | $ (25,200) | $ (84,200) |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT (Narrative) (Details) - USD ($) $ in Millions | Jan. 02, 2022 | Jan. 03, 2021 |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Contractual purchase obligations outstanding | $ 159.4 | $ 17.5 |
RIGHT-OF-USE ASSETS AND LEASE_3
RIGHT-OF-USE ASSETS AND LEASE OBLIGATIONS - ROU ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Disclosure of quantitative information about right-of-use assets [line items] | |||
Additions | $ 8,132 | $ 16,424 | |
Additions through business acquisitions | 43,539 | 0 | |
Write-downs, impairments, and accelerated depreciation | (4,696) | (15,862) | |
Depreciation of right-of-use assets (note 9) | (13,973) | (14,656) | |
Right-of-use assets | 92,447 | 59,445 | $ 73,539 |
Right-of-use assets | 92,447 | 59,445 | $ 73,539 |
Additions | 8,132 | 16,424 | |
Terminations of right-of-use assets | 4,696 | 15,862 | |
Depreciation of right-of-use assets (note 10) | $ 13,973 | $ 14,656 |
RIGHT-OF-USE ASSETS AND LEASE_4
RIGHT-OF-USE ASSETS AND LEASE OBLIGATIONS RIGHT-OF-USE ASSETS AND LEASE OBLIGATIONS - LEASE OBLIGATIONS (Details) - USD ($) $ in Thousands | Jan. 02, 2022 | Jan. 03, 2021 |
Presentation of leases for lessee [abstract] | ||
Current lease liabilities | $ 15,290 | $ 15,884 |
Non-current lease liabilities | 93,812 | 66,580 |
Lease liabilities | $ 109,102 | $ 82,464 |
RIGHT-OF-USE ASSETS AND LEASE_5
RIGHT-OF-USE ASSETS AND LEASE OBLIGATIONS (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 02, 2022 | Jan. 03, 2021 | |
Presentation of leases for lessee [abstract] | ||
Expense relating to variable lease payments not included in measurement of lease liabilities | $ 45.8 | $ 55.1 |
Expense relating to short-term leases and leases of low-value assets for which recognition exemption has been used | 3.3 | 3.8 |
Cash outflow for leases | 24.1 | 18.6 |
Other inflows (outflows) of cash, classified as financing activities | $ 21.5 | $ 15.4 |
RIGHT-OF-USE ASSETS AND LEASE_6
RIGHT-OF-USE ASSETS AND LEASE OBLIGATIONS RIGHT-OF-USE ASSETS AND LEASE OBLIGATIONS - Maturity (Details) $ in Thousands | Jan. 02, 2022USD ($) |
Disclosure of quantitative information about right-of-use assets [line items] | |
Payments of lease liabilities | $ 133,161 |
Less than one year | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Payments of lease liabilities | 21,221 |
One to five years | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Payments of lease liabilities | 50,585 |
More than five years | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Payments of lease liabilities | $ 61,355 |
INTANGIBLE ASSETS AND GOODWIL_2
INTANGIBLE ASSETS AND GOODWILL (Intangible assets) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 29, 2020 | Jan. 02, 2022 | Jan. 03, 2021 | |
Changes in intangible assets other than goodwill [abstract] | |||
Balance, beginning of period | $ 289,901 | $ 289,901 | $ 289,901 |
(Impairment reversal, net of write-downs) | 94,000 | (31,459) | 93,989 |
Write-downs and impairments | 31,500 | ||
Balance, end of period | 306,630 | 289,901 | |
Carrying amount | 306,630 | 289,901 | |
Gross carrying amount | |||
Changes in intangible assets other than goodwill [abstract] | |||
Balance, beginning of period | 594,324 | 589,542 | 594,324 |
Additions | 3,635 | 3,159 | |
Disposals | 773 | 7,941 | |
Balance, end of period | 592,404 | 589,542 | |
Carrying amount | 592,404 | 589,542 | |
Accumulated amortization | |||
Changes in intangible assets other than goodwill [abstract] | |||
Balance, beginning of period | (210,460) | (299,641) | (210,460) |
Disposals | (484) | (3,985) | |
Amortization | 18,076 | 20,406 | |
(Impairment reversal, net of write-downs) | (31,459) | ||
Write-downs and impairments | 72,760 | ||
Balance, end of period | (285,774) | (299,641) | |
Carrying amount | (285,774) | (299,641) | |
Customer contracts and customer relationships | |||
Changes in intangible assets other than goodwill [abstract] | |||
Balance, beginning of period | 82,358 | 82,358 | |
Balance, end of period | 76,357 | ||
Carrying amount | 76,357 | ||
Customer contracts and customer relationships | Gross carrying amount | |||
Changes in intangible assets other than goodwill [abstract] | |||
Balance, beginning of period | 224,489 | 224,489 | 224,489 |
Additions | 0 | 0 | |
Disposals | 0 | 0 | |
Balance, end of period | 224,489 | 224,489 | |
Carrying amount | 224,489 | 224,489 | |
Customer contracts and customer relationships | Accumulated amortization | |||
Changes in intangible assets other than goodwill [abstract] | |||
Balance, beginning of period | (101,844) | (142,131) | (101,844) |
Disposals | 0 | 0 | |
Amortization | 9,944 | 10,670 | |
(Impairment reversal, net of write-downs) | (3,943) | ||
Write-downs and impairments | 29,617 | ||
Balance, end of period | (148,132) | (142,131) | |
Carrying amount | (148,132) | (142,131) | |
License agreements | |||
Changes in intangible assets other than goodwill [abstract] | |||
Balance, beginning of period | 8,449 | 8,449 | |
Balance, end of period | 5,867 | ||
Carrying amount | 5,867 | ||
License agreements | Gross carrying amount | |||
Changes in intangible assets other than goodwill [abstract] | |||
Balance, beginning of period | 72,750 | 72,796 | 72,750 |
Additions | 0 | 46 | |
Disposals | 0 | 0 | |
Balance, end of period | 72,796 | 72,796 | |
Carrying amount | 72,796 | 72,796 | |
License agreements | Accumulated amortization | |||
Changes in intangible assets other than goodwill [abstract] | |||
Balance, beginning of period | (61,415) | (64,347) | (61,415) |
Disposals | 0 | 0 | |
Amortization | 2,582 | 2,932 | |
(Impairment reversal, net of write-downs) | 0 | ||
Write-downs and impairments | 0 | ||
Balance, end of period | (66,929) | (64,347) | |
Carrying amount | (66,929) | (64,347) | |
Computer software | |||
Changes in intangible assets other than goodwill [abstract] | |||
Balance, beginning of period | 19,273 | 19,273 | |
Balance, end of period | 17,361 | ||
Carrying amount | 17,361 | ||
Computer software | Gross carrying amount | |||
Changes in intangible assets other than goodwill [abstract] | |||
Balance, beginning of period | 69,123 | 64,295 | 69,123 |
Additions | 3,635 | 3,113 | |
Disposals | 773 | 7,941 | |
Balance, end of period | 67,157 | 64,295 | |
Carrying amount | 67,157 | 64,295 | |
Computer software | Accumulated amortization | |||
Changes in intangible assets other than goodwill [abstract] | |||
Balance, beginning of period | (42,903) | (45,022) | (42,903) |
Disposals | (484) | (3,985) | |
Amortization | 5,258 | 6,104 | |
(Impairment reversal, net of write-downs) | 0 | ||
Write-downs and impairments | 0 | ||
Balance, end of period | (49,796) | (45,022) | |
Carrying amount | (49,796) | (45,022) | |
Non-compete agreements | |||
Changes in intangible assets other than goodwill [abstract] | |||
Balance, beginning of period | 0 | 0 | |
Balance, end of period | 0 | ||
Carrying amount | 0 | ||
Non-compete agreements | Gross carrying amount | |||
Changes in intangible assets other than goodwill [abstract] | |||
Balance, beginning of period | 1,790 | 1,790 | 1,790 |
Additions | 0 | 0 | |
Disposals | 0 | 0 | |
Balance, end of period | 1,790 | 1,790 | |
Carrying amount | 1,790 | 1,790 | |
Non-compete agreements | Accumulated amortization | |||
Changes in intangible assets other than goodwill [abstract] | |||
Balance, beginning of period | (1,790) | (1,790) | (1,790) |
Disposals | 0 | 0 | |
Amortization | 0 | 0 | |
(Impairment reversal, net of write-downs) | 0 | ||
Write-downs and impairments | 0 | ||
Balance, end of period | (1,790) | (1,790) | |
Carrying amount | (1,790) | (1,790) | |
Trademarks | |||
Changes in intangible assets other than goodwill [abstract] | |||
Balance, beginning of period | 179,821 | 179,821 | |
Balance, end of period | 207,045 | ||
Carrying amount | 207,045 | ||
Trademarks | Gross carrying amount | |||
Changes in intangible assets other than goodwill [abstract] | |||
Balance, beginning of period | 226,172 | 226,172 | 226,172 |
Additions | 0 | 0 | |
Disposals | 0 | 0 | |
Balance, end of period | 226,172 | 226,172 | |
Carrying amount | 226,172 | 226,172 | |
Trademarks | Accumulated amortization | |||
Changes in intangible assets other than goodwill [abstract] | |||
Balance, beginning of period | $ (2,508) | (46,351) | (2,508) |
Disposals | 0 | 0 | |
Amortization | 292 | 700 | |
(Impairment reversal, net of write-downs) | (27,516) | ||
Write-downs and impairments | 43,143 | ||
Balance, end of period | (19,127) | (46,351) | |
Carrying amount | $ (19,127) | $ (46,351) |
INTANGIBLE ASSETS AND GOODWIL_3
INTANGIBLE ASSETS AND GOODWILL (Narrative) (Details) | 3 Months Ended | 12 Months Ended | |||
Apr. 04, 2021USD ($) | Mar. 29, 2020USD ($) | Jan. 02, 2022USD ($) | Jan. 03, 2021USD ($) | Dec. 29, 2019USD ($) | |
Disclosure of detailed information about intangible assets [line items] | |||||
Intangible assets | $ 306,630,000 | $ 289,901,000 | $ 289,901,000 | ||
(Impairment reversal, net of write-downs) | $ 94,000,000 | $ (31,459,000) | 93,989,000 | ||
Reversal of intangible asset impairment | $ 55,600,000 | ||||
Key assumption used in estimation of unit's recoverable amount, EBITDA multiple | 10 | ||||
Write-downs and impairments | $ 31,500,000 | ||||
Hosiery and underwear | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
Recoverable amount of asset or cash-generating unit | 544,000,000 | 273,500,000 | |||
Cash-generating units | Textile And Sewing | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
(Impairment reversal, net of write-downs) | 0 | ||||
Cash-generating units | Hosiery and underwear | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
(Impairment reversal, net of write-downs) | 24,100,000 | ||||
Trademarks | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
Reversal of impairment loss recognised in profit or loss, intangible assets other than goodwill | 37,900,000 | ||||
Trademarks | Cash-generating units | Hosiery and underwear | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
(Impairment reversal, net of write-downs) | 10,400,000 | ||||
Customer contracts and customer relationships | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
Reversal of impairment loss recognised in profit or loss, intangible assets other than goodwill | 17,700,000 | ||||
Customer contracts and customer relationships | Cash-generating units | Hosiery and underwear | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
(Impairment reversal, net of write-downs) | 13,700,000 | ||||
Computer software | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
Intangible assets | 17,361,000 | $ 19,273,000 | |||
Computer software | Internally-generated | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
Intangible assets | 14,100,000 | 16,100,000 | |||
Computer software, assets not yet utilized in operations | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
Intangible assets | $ 3,600,000 | $ 1,900,000 |
INTANGIBLE ASSETS AND GOODWIL_4
INTANGIBLE ASSETS AND GOODWILL (Goodwill) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 29, 2020 | Jan. 02, 2022 | Jan. 03, 2021 | |
Changes in intangible assets and goodwill [abstract] | |||
(Impairment reversal, net of write-downs) | $ (94,000) | $ 31,459 | $ (93,989) |
Goodwill | |||
Changes in intangible assets and goodwill [abstract] | |||
Balance, beginning of fiscal year | $ 227,865 | 206,636 | 227,865 |
Goodwill acquired | 77,179 | 0 | |
(Impairment reversal, net of write-downs) | 0 | (21,229) | |
Balance, end of fiscal year | $ 283,815 | $ 206,636 |
INTANGIBLE ASSETS AND GOODWIL_5
INTANGIBLE ASSETS AND GOODWILL (Recoverability of cash-generating units) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 29, 2020 | Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Disclosure of information for cash-generating units [line items] | ||||
Goodwill | $ 283,815 | $ 206,636 | ||
Intangible assets (note 11) | 306,630 | 289,901 | $ 289,901 | |
(Impairment reversal, net of write-downs) | $ 94,000 | (31,459) | 93,989 | |
Cash-generating units | Branded Apparel | ||||
Disclosure of information for cash-generating units [line items] | ||||
Goodwill | 283,815 | 206,636 | ||
Intangible assets (note 11) | 23,430 | 27,869 | ||
Indefinite life intangible assets | 93,400 | 93,400 | ||
Intangible assets and goodwill | 400,645 | 327,905 | ||
Cash-generating units | Printwear | ||||
Disclosure of information for cash-generating units [line items] | ||||
Goodwill | 0 | 0 | ||
Intangible assets (note 11) | 58,794 | 63,230 | ||
Indefinite life intangible assets | 113,645 | 86,129 | ||
Intangible assets and goodwill | $ 172,439 | $ 149,359 |
LONG-TERM DEBT (Details)
LONG-TERM DEBT (Details) - USD ($) | 12 Months Ended | ||||
Jan. 02, 2022 | Jan. 03, 2021 | Apr. 06, 2020 | Mar. 31, 2018 | Mar. 31, 2017 | |
Disclosure of detailed information about borrowings [line items] | |||||
Principal amount | $ 600,000,000 | $ 1,000,000,000 | |||
Write-down of inventory to net realizable value | 55,200,000 | 108,100,000 | |||
Long-term debt (note 12) | 600,000,000 | 1,000,000,000 | |||
Personal protective equipment | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Write-down of inventory to net realizable value | 6,200,000 | ||||
Revolving long-term bank credit facility, interest at variable U.S. LIBOR-based interest rate plus a spread ranging from 1% to 2% | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Principal amount | 0 | 0 | |||
Maximum borrowing capacity | 1,000,000,000 | $ 1,000,000,000 | |||
Amount committed against facility to cover various letters of credit | 51,100,000 | 7,200,000 | |||
Long-term debt (note 12) | $ 0 | 0 | |||
Revolving long-term bank credit facility, interest at variable U.S. LIBOR-based interest rate plus a spread ranging from 1% to 2% | Bottom of range [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Basis spread on variable rate | 1.00% | ||||
Basis spread on variable rate | 1.00% | ||||
Revolving long-term bank credit facility, interest at variable U.S. LIBOR-based interest rate plus a spread ranging from 1% to 2% | Top of range [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Basis spread on variable rate | 3.00% | ||||
Basis spread on variable rate | 3.00% | ||||
Term Loan, Interest At Variable U.S. LIBOR-based Interest Rate Plus A Spread Ranging From 1% to 3% Due April 2025 | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Principal amount | $ 300,000,000 | 300,000,000 | |||
Maximum borrowing capacity | $ 300,000,000 | ||||
Long-term debt (note 12) | $ 300,000,000 | 300,000,000 | |||
Term Loan, Interest At Variable U.S. LIBOR-based Interest Rate Plus A Spread Ranging From 1% to 3% Due April 2025 | Effective interest rate | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Interest rate | 2.40% | ||||
Interest rate | 2.40% | ||||
Term Loan, Interest At Variable U.S. LIBOR-based Interest Rate Plus A Spread Ranging From 1% to 3% Due April 2025 | Bottom of range [member] | LIBOR | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Basis spread on variable rate | 1.00% | ||||
Basis spread on variable rate | 1.00% | ||||
Term Loan, Interest At Variable U.S. LIBOR-based Interest Rate Plus A Spread Ranging From 1% to 3% Due April 2025 | Top of range [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Basis spread on variable rate | 3.00% | ||||
Basis spread on variable rate | 3.00% | ||||
Term loan, interest at variable U.S. LIBOR-based interest rate plus a spread ranging from 1% to 3% Due April 2022 | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Principal amount | $ 0 | 400,000,000 | |||
Maximum borrowing capacity | $ 400,000,000 | ||||
Long-term debt (note 12) | $ 0 | 400,000,000 | |||
Term loan, interest at variable U.S. LIBOR-based interest rate plus a spread ranging from 1% to 3% Due April 2022 | Bottom of range [member] | LIBOR | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Basis spread on variable rate | 1.70% | ||||
Basis spread on variable rate | 1.70% | ||||
Term loan, interest at variable U.S. LIBOR-based interest rate plus a spread ranging from 1% to 3% Due April 2022 | Top of range [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Basis spread on variable rate | 3.00% | ||||
Basis spread on variable rate | 3.00% | ||||
Notes payable, interest at fixed and variable rates | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Principal amount | $ 300,000,000 | ||||
Long-term debt (note 12) | $ 300,000,000 | ||||
Notes payable, interest at fixed rate of 2.70%, payable semi-annually | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Interest rate | 2.70% | ||||
Principal amount | $ 100,000,000 | 100,000,000 | |||
Interest rate | 2.70% | ||||
Long-term debt (note 12) | $ 100,000,000 | 100,000,000 | |||
Notes payable, interest at fixed rate of 2.70%, payable semi-annually | Effective interest rate | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Interest rate | 2.70% | ||||
Interest rate | 2.70% | ||||
Notes payable, interest at variable U.S. LIBOR-based interest rate plus a spread of 1.53% payable quarterly | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Principal amount | $ 50,000,000 | 50,000,000 | |||
Long-term debt (note 12) | $ 50,000,000 | 50,000,000 | |||
Notes payable, interest at variable U.S. LIBOR-based interest rate plus a spread of 1.53% payable quarterly | Effective interest rate | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Interest rate | 2.70% | ||||
Interest rate | 2.70% | ||||
Notes payable, interest at variable U.S. LIBOR-based interest rate plus a spread of 1.53% payable quarterly | LIBOR | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Basis spread on variable rate | 1.53% | ||||
Basis spread on variable rate | 1.53% | ||||
Notes payable, interest at fixed rate of 2.91%, payable semi-annually | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Interest rate | 2.91% | ||||
Principal amount | $ 100,000,000 | 100,000,000 | |||
Interest rate | 2.91% | ||||
Long-term debt (note 12) | $ 100,000,000 | 100,000,000 | |||
Notes payable, interest at fixed rate of 2.91%, payable semi-annually | Effective interest rate | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Interest rate | 2.90% | ||||
Interest rate | 2.90% | ||||
Notes payable, interest at variable U.S. LIBOR-based interest rate plus a spread of 1.57% payable quarterly | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Principal amount | $ 50,000,000 | 50,000,000 | |||
Long-term debt (note 12) | $ 50,000,000 | $ 50,000,000 | |||
Notes payable, interest at variable U.S. LIBOR-based interest rate plus a spread of 1.57% payable quarterly | Effective interest rate | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Interest rate | 2.90% | ||||
Interest rate | 2.90% | ||||
Notes payable, interest at variable U.S. LIBOR-based interest rate plus a spread of 1.57% payable quarterly | LIBOR | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Basis spread on variable rate | 1.57% | ||||
Basis spread on variable rate | 1.57% |
LONG-TERM DEBT LONG-TERM DEBT (
LONG-TERM DEBT LONG-TERM DEBT (Narrative) (Details) - USD ($) | Jan. 02, 2022 | Apr. 06, 2020 | Mar. 31, 2018 | Mar. 31, 2017 |
Disclosure of detailed information about borrowings [line items] | ||||
Undrawn borrowing facilities | $ 60,000,000 | |||
Upfront amendment costs | 3,900,000 | |||
Revolving long-term bank credit facility, interest at variable U.S. LIBOR-based interest rate plus a spread ranging from 1% to 2% | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Maximum borrowing capacity | $ 1,000,000,000 | $ 1,000,000,000 | ||
Term Loan, Interest At Variable U.S. LIBOR-based Interest Rate Plus A Spread Ranging From 1% to 3% Due April 2025 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Maximum borrowing capacity | $ 300,000,000 | |||
Term loan, interest at variable U.S. LIBOR-based interest rate plus a spread ranging from 1% to 3% Due April 2022 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Maximum borrowing capacity | $ 400,000,000 |
OTHER NON-CURRENT LIABILITIES_2
OTHER NON-CURRENT LIABILITIES (Other non-current liabilities) (Details) - USD ($) $ in Thousands | Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 |
Subclassifications of assets, liabilities and equities [abstract] | |||
Employee benefit obligation - Statutory severance and pre-notice (a) | $ 42,931 | $ 19,889 | $ 27,767 |
Employee benefit obligation - Defined contribution plan (b) | 3,742 | 3,736 | |
Provisions (c) | 13,189 | 12,240 | $ 10,790 |
Other non-current liabilities | $ 59,862 | $ 35,865 |
OTHER NON-CURRENT LIABILITIES_3
OTHER NON-CURRENT LIABILITIES (Statutory severance and pre-notice obligations) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 02, 2022 | Jan. 03, 2021 | |
Changes in net defined benefit liability (asset) [abstract] | ||
Obligation, beginning of fiscal year | $ 19,889 | $ 27,767 |
Service cost | 13,942 | 16,785 |
Interest cost | 6,562 | 7,305 |
Actuarial loss | 21,678 | (12,142) |
Foreign exchange gain | (179) | (253) |
Benefits paid | (18,961) | (19,573) |
Obligation, end of fiscal year | $ 42,931 | $ 19,889 |
OTHER NON-CURRENT LIABILITIES_4
OTHER NON-CURRENT LIABILITIES (Statutory severance and pre-notice obligations Narrative) (Details) - USD ($) $ in Millions | Jan. 02, 2022 | Jan. 03, 2021 |
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of expected rates of salary increases | 7.50% | |
Cumulative amount of actuarial losses recognized in other comprehensive income | $ 34.6 | $ 12.9 |
Actuarial assumption of discount rate | ||
Disclosure of defined benefit plans [line items] | ||
Percentage of reasonably possible increase in actuarial assumption | 1.00% | |
Increase (decrease) in defined benefit obligation due to reasonably possible increase in actuarial assumption | $ (6.6) | |
Percentage of reasonably possible decrease in actuarial assumption | 1.00% | |
Increase (decrease) in defined benefit obligation due to reasonably possible decrease in actuarial assumption | $ 8.2 | |
Actuarial assumption of expected rates of compensation increases | ||
Disclosure of defined benefit plans [line items] | ||
Percentage of reasonably possible increase in actuarial assumption | 1.00% | |
Increase (decrease) in defined benefit obligation due to reasonably possible increase in actuarial assumption | $ 8.4 | |
Percentage of reasonably possible decrease in actuarial assumption | 1.00% | |
Increase (decrease) in defined benefit obligation due to reasonably possible decrease in actuarial assumption | $ (6.9) | |
Bottom of range [member] | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of discount rates | 8.50% | 9.00% |
Actuarial assumption of expected rates of salary increases | 7.75% | |
Top of range [member] | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial assumption of discount rates | 9.20% | 11.50% |
Actuarial assumption of expected rates of salary increases | 10.50% |
OTHER NON-CURRENT LIABILITIES_5
OTHER NON-CURRENT LIABILITIES (Defined contribution plan Narrative) (Details) - USD ($) | 12 Months Ended | |
Jan. 02, 2022 | Jan. 03, 2021 | |
Subclassifications of assets, liabilities and equities [abstract] | ||
Defined contribution expenses | $ 5,300,000 | $ 4,500,000 |
OTHER NON-CURRENT LIABILITIES_6
OTHER NON-CURRENT LIABILITIES (Provisions) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 02, 2022 | Jan. 03, 2021 | |
Reconciliation of changes in other provisions [abstract] | ||
Balance, January 1, 2018 | $ 12,240 | $ 10,790 |
Changes in estimates made during the fiscal year | 796 | 1,208 |
Accretion of interest | 153 | 242 |
Balance, December 31, 2018 | $ 13,189 | $ 12,240 |
Expected Timing Of Outflows, Other Provisions | 20 years |
EQUITY (Share capital Narrative
EQUITY (Share capital Narrative) (Details) - USD ($) $ in Millions | Apr. 03, 2022 | Jan. 02, 2022 | Jan. 03, 2021 |
Disclosure of classes of share capital [line items] | |||
Shares issued (in shares) | 192,267,273 | 198,407,222 | |
Shares outstanding (in shares) | 192,267,273 | 198,407,222 | |
Number of shares in entity held by entity or by its subsidiaries or associates | 8,759 | 2,897 | |
Accounts payables, stock repurchases | $ 5.3 | ||
First Preference Shares [Member] | |||
Disclosure of classes of share capital [line items] | |||
Shares issued (in shares) | 0 | 0 | |
Second Preferences Shares [Member] | |||
Disclosure of classes of share capital [line items] | |||
Shares issued (in shares) | 0 | 0 |
EQUITY (Normal course issuer bi
EQUITY (Normal course issuer bid Narrative) (Details) - USD ($) $ in Thousands | Feb. 23, 2022 | Feb. 19, 2020 | Apr. 03, 2022 | Aug. 08, 2022 | Jan. 02, 2022 | Jan. 03, 2021 | Aug. 04, 2021 |
Disclosure of classes of share capital [line items] | |||||||
Number of shares authorized to be repurchased (in shares) | 19,477,744 | 9,939,154 | 9,926,177 | ||||
Number of shares authorized to be repurchased as a percentage of issued and outstanding common shares | 10.00% | 5.00% | 5.00% | ||||
Shares repurchased for cancellation (in shares) | 125,073 | 6,475,375 | 843,038 | ||||
Shares repurchased for cancellation | $ 250,439 | $ 23,216 | |||||
Number of shares in entity held by entity or by its subsidiaries or associates | 8,759 | 2,897 | |||||
Value of shares in entity held by entity or by its subsidiaries or associates | $ 40 | $ 200 | |||||
Share capital | |||||||
Disclosure of classes of share capital [line items] | |||||||
Shares repurchased for cancellation (in shares) | 6,475,000 | 843,000 | |||||
Shares repurchased for cancellation | $ 6,182 | $ 744 | |||||
Retained earnings | |||||||
Disclosure of classes of share capital [line items] | |||||||
Shares repurchased for cancellation | $ 244,257 | $ 22,472 |
FINANCIAL INSTRUMENTS (Carrying
FINANCIAL INSTRUMENTS (Carrying amounts and fair values) (Details) $ in Thousands, € in Millions, ৳ in Millions, ¥ in Millions, ¥ in Millions, £ in Millions, $ in Millions, $ in Millions, $ in Millions, $ in Millions | Jan. 02, 2022USD ($) | Jan. 02, 2022CAD ($) | Jan. 02, 2022GBP (£) | Jan. 02, 2022EUR (€) | Jan. 02, 2022AUD ($) | Jan. 02, 2022MXN ($) | Jan. 02, 2022CNY (¥) | Jan. 02, 2022BDT (৳) | Jan. 02, 2022COP ($) | Jan. 02, 2022JPY (¥) | Jan. 03, 2021USD ($) | Dec. 29, 2019USD ($) |
Disclosure Of Financial Assets And Liabilities [Line Items] | ||||||||||||
Cash and cash equivalents (note 6) | $ 179,246 | $ 6.1 | £ 1.7 | € 3.3 | $ 1.8 | $ 5.3 | ¥ 4.5 | ৳ 4.2 | $ 1.9 | ¥ 0.9 | $ 505,264 | $ 64,126 |
Trade accounts receivable (note 7) | 329,967 | $ 16.9 | £ 0 | € 7 | $ 3.9 | $ 2.6 | ¥ 0.7 | ৳ 0 | $ 0 | ¥ 0 | 196,480 | |
Financial liabilities, carrying value | 1,149,500 | |||||||||||
Financing arrangements | 18,100 | 27,600 | ||||||||||
Financial liabilities, fair value | 212,200 | 221,300 | ||||||||||
Financial liabilities, timing differences | 48,800 | 20,000 | ||||||||||
Financial liabilities at amortised cost | Accounts payable and accrued liabilities (1) | ||||||||||||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||||||||||||
Financial liabilities, carrying value | 436,073 | 326,069 | ||||||||||
Financial liabilities, fair value | 436,073 | 326,069 | ||||||||||
Financial liabilities at amortised cost | Long term borrowings with variable rates | ||||||||||||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||||||||||||
Financial liabilities, carrying value | 400,000 | 800,000 | ||||||||||
Financial liabilities, fair value | 400,000 | 800,000 | ||||||||||
Financial liabilities at amortised cost | Long term borrowings with fixed rates | ||||||||||||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||||||||||||
Financial liabilities, carrying value | 200,000 | 200,000 | ||||||||||
Financial liabilities, fair value | 200,000 | 200,000 | ||||||||||
Derivative financial liabilities included in accounts payable and accrued liabilities | ||||||||||||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||||||||||||
Financial liabilities, carrying value | 4,328 | 17,653 | ||||||||||
Financial liabilities, fair value | 4,328 | 17,653 | ||||||||||
Financial assets at amortised cost | Cash and cash equivalents | ||||||||||||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||||||||||||
Cash and cash equivalents (note 6) | 179,246 | 505,264 | ||||||||||
Financial assets, fair value | 179,246 | 505,264 | ||||||||||
Financial assets at amortised cost | Trade accounts receivable | ||||||||||||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||||||||||||
Trade accounts receivable (note 7) | 329,967 | 196,480 | ||||||||||
Financial assets, fair value | 329,967 | 196,480 | ||||||||||
Financial assets at amortised cost | Financial assets included in prepaid expenses, deposits and other current assets | ||||||||||||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||||||||||||
Financial assets | 69,995 | 88,781 | ||||||||||
Financial assets, fair value | 69,995 | 88,781 | ||||||||||
Financial assets at amortised cost | Long-term non-trade receivables included in other non-current assets | ||||||||||||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||||||||||||
Financial assets | 390 | 1,435 | ||||||||||
Financial assets, fair value | 390 | 1,435 | ||||||||||
Derivative financial assets included in prepaid expenses, deposits and other current assets | ||||||||||||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||||||||||||
Financial assets | 62,758 | 4,947 | ||||||||||
Financial assets, fair value | $ 62,758 | $ 4,947 |
FINANCIAL INSTRUMENTS (Addition
FINANCIAL INSTRUMENTS (Additional Information) (Details) pound in Millions | 12 Months Ended | |
Jan. 02, 2022USD ($)sharespound | Jan. 03, 2021USD ($)poundshares | |
Disclosure of detailed information about hedged items [line items] | ||
Cash flow hedges (note 15(d)) | $ 73,847,000 | $ (8,503,000) |
Net losses in AOCI expected to be reclassified to inventory or net earnings within the next twelve months | $ 64,100,000 | |
Total Return Swap | ||
Disclosure of detailed information about hedged items [line items] | ||
Term of TRS | 1 year | |
Nominal amount of derivative | shares | 319,639 | 284,663 |
Notional amount | $ 30,000 | $ 400,000 |
Cash flow hedges | ||
Disclosure of detailed information about hedged items [line items] | ||
Ineffectiveness recognized in net earnings | $ 0 | |
Cash flow hedges (note 15(d)) | $ 9,000,000 | |
Commodity risk | Cash flow hedges | Forward contracts | ||
Disclosure of detailed information about hedged items [line items] | ||
Nominal amount of derivative | pound | 251 | 16.2 |
FINANCIAL INSTRUMENTS (Commitme
FINANCIAL INSTRUMENTS (Commitments to buy and sell foreign currencies) (Details) - Foreign currency risk - Cash flow hedges € in Thousands, £ in Thousands, $ in Thousands, $ in Thousands, $ in Thousands, $ in Thousands | 12 Months Ended | |||||||||||
Jan. 02, 2022USD ($) | Jan. 03, 2021USD ($) | Jan. 02, 2022GBP (£) | Jan. 02, 2022EUR (€) | Jan. 02, 2022CAD ($) | Jan. 02, 2022AUD ($) | Jan. 02, 2022MXN ($) | Jan. 03, 2021GBP (£) | Jan. 03, 2021EUR (€) | Jan. 03, 2021CAD ($) | Jan. 03, 2021AUD ($) | Jan. 03, 2021MXN ($) | |
Disclosure of detailed information about hedging instruments [line items] | ||||||||||||
Notional amount | $ 141,526 | $ 145,929 | ||||||||||
Financial assets, carrying value | 3,357 | 1,654 | ||||||||||
Financial liabilities, carrying value | (166) | (5,670) | ||||||||||
Net financial assets (liabilities) | $ 3,191 | $ (4,016) | ||||||||||
Bottom of range [member] | ||||||||||||
Disclosure of detailed information about hedging instruments [line items] | ||||||||||||
Remaining maturity | ||||||||||||
Top of range [member] | ||||||||||||
Disclosure of detailed information about hedging instruments [line items] | ||||||||||||
Remaining maturity | ||||||||||||
Sell GBP/Buy USD | ||||||||||||
Disclosure of detailed information about hedging instruments [line items] | ||||||||||||
Notional amount | $ 36,834 | $ 43,287 | £ 26,752 | £ 33,069 | ||||||||
Average exchange rate | 1.3769 | 1.3090 | ||||||||||
Financial assets, carrying value | $ 808 | $ 0 | ||||||||||
Financial liabilities, carrying value | (54) | (1,784) | ||||||||||
Net financial assets (liabilities) | 754 | (1,784) | ||||||||||
Sell EUR/Buy USD | ||||||||||||
Disclosure of detailed information about hedging instruments [line items] | ||||||||||||
Notional amount | $ 35,020 | $ 39,668 | € 29,390 | € 33,571 | ||||||||
Average exchange rate | 1.1916 | 1.1816 | ||||||||||
Financial assets, carrying value | $ 1,592 | $ 0 | ||||||||||
Financial liabilities, carrying value | 0 | (1,736) | ||||||||||
Net financial assets (liabilities) | 1,592 | (1,736) | ||||||||||
Sell CAD/Buy USD | ||||||||||||
Disclosure of detailed information about hedging instruments [line items] | ||||||||||||
Notional amount | $ 31,478 | $ 34,623 | $ 39,274 | $ 45,591 | ||||||||
Average exchange rate | 0.8015 | 0.7594 | ||||||||||
Financial assets, carrying value | $ 665 | $ 0 | ||||||||||
Financial liabilities, carrying value | 0 | (1,111) | ||||||||||
Net financial assets (liabilities) | 665 | (1,111) | ||||||||||
Buy CAD/Sell USD | ||||||||||||
Disclosure of detailed information about hedging instruments [line items] | ||||||||||||
Notional amount | $ 24,316 | $ 15,336 | $ 31,016 | $ 21,669 | ||||||||
Average exchange rate | 0.7840 | 0.7077 | ||||||||||
Financial assets, carrying value | $ 92 | $ 1,626 | ||||||||||
Financial liabilities, carrying value | (88) | 0 | ||||||||||
Net financial assets (liabilities) | 4 | 1,626 | ||||||||||
Sell AUD/Buy USD | ||||||||||||
Disclosure of detailed information about hedging instruments [line items] | ||||||||||||
Notional amount | $ 6,599 | $ 5,332 | $ 8,885 | $ 7,387 | ||||||||
Average exchange rate | 0.7427 | 0.7218 | ||||||||||
Financial assets, carrying value | $ 161 | $ 0 | ||||||||||
Financial liabilities, carrying value | (13) | (346) | ||||||||||
Net financial assets (liabilities) | 148 | (346) | ||||||||||
Sell MXN/Buy USD | ||||||||||||
Disclosure of detailed information about hedging instruments [line items] | ||||||||||||
Notional amount | $ 7,279 | $ 7,683 | $ 151,791 | $ 168,727 | ||||||||
Average exchange rate | 0.0480 | 0.0455 | ||||||||||
Financial assets, carrying value | $ 39 | $ 28 | ||||||||||
Financial liabilities, carrying value | (11) | (693) | ||||||||||
Net financial assets (liabilities) | $ 28 | $ (665) |
FINANCIAL INSTRUMENTS (Commodit
FINANCIAL INSTRUMENTS (Commodity contracts outstanding) (Details) - Commodity risk - Cash flow hedges $ in Thousands, pound in Millions, gal in Millions | Jan. 02, 2022USD ($)galpound | Jan. 03, 2021USD ($)galpound |
Disclosure of detailed information about hedging instruments [line items] | ||
Financial assets, fair value | $ 57,977 | $ 1,843 |
Forward contracts | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Nominal amount of hedging instrument | pound | 251 | 16.2 |
Financial assets, fair value | $ 56,419 | $ 1,582 |
Swap contracts | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Nominal amount of hedging instrument | pound | 3.9 | |
Financial assets, fair value | $ (781) | |
Swap And Option Contract | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Nominal amount of hedging instrument | gal | 5.7 | 6.4 |
Financial assets, fair value | $ 1,558 | $ 1,042 |
Accounts payable and accrued liabilities (1) | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Financial liabilities, carrying value | (102) | (1,039) |
Accounts payable and accrued liabilities (1) | Forward contracts | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Financial liabilities, carrying value | 0 | 0 |
Accounts payable and accrued liabilities (1) | Swap contracts | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Financial liabilities, carrying value | (781) | |
Accounts payable and accrued liabilities (1) | Swap And Option Contract | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Financial liabilities, carrying value | (102) | (258) |
Financial assets included in prepaid expenses, deposits and other current assets | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Financial assets, carrying value | 58,079 | 2,882 |
Financial assets included in prepaid expenses, deposits and other current assets | Forward contracts | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Financial assets, carrying value | 56,419 | 1,582 |
Financial assets included in prepaid expenses, deposits and other current assets | Swap contracts | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Financial assets, carrying value | 0 | |
Financial assets included in prepaid expenses, deposits and other current assets | Swap And Option Contract | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Financial assets, carrying value | $ 1,660 | $ 1,300 |
FINANCIAL INSTRUMENTS (Floating
FINANCIAL INSTRUMENTS (Floating-to-fixed interest rate swap contracts outstanding) (Details) - USD ($) | Jan. 02, 2022 | Jan. 03, 2021 |
Disclosure of detailed information about hedging instruments [line items] | ||
Long-term debt (note 12) | $ 600,000,000 | $ 1,000,000,000 |
Term Loan, Interest At Variable U.S. LIBOR-based Interest Rate Plus A Spread Ranging From 1% to 3% Due April 2025 | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Long-term debt (note 12) | 300,000,000 | 300,000,000 |
Interest rate risk | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Notional amount | 400,000,000 | |
Cash flow hedges | Interest rate risk | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Notional amount | 250,000,000 | |
Cash flow hedges | Interest rate risk | Term Loan, Interest At Variable U.S. LIBOR-based Interest Rate Plus A Spread Ranging From 1% to 3% Due April 2025 | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Notional amount | 100,000,000 | |
Cash flow hedges | Interest rate risk | Floating-to-fixed interest rate swap, maturing on June 17, 2021 | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Notional amount | 75,000,000 | 150,000,000 |
Cash flow hedges | Interest rate risk | Floating-To-Fixed Interest Rate Swap Contracts Maturing On April 6, 2022 | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Notional amount | 50,000,000 | |
Cash flow hedges | Interest rate risk | Floating-to-fixed interest rate swap, maturing on April 30, 2023 | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Notional amount | 25,000,000 | 25,000,000 |
Cash flow hedges | Interest rate risk | Floating-To-Fixed Interest Rate Swap Contracts Maturing On April 30, 2024 | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Notional amount | 50,000,000 | 75,000,000 |
Cash flow hedges | Interest rate risk | Floating-To-Fixed Interest Rate Swap Contracts Maturing On April 30, 2025 | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Notional amount | 25,000,000 | |
Cash flow hedges | Interest rate risk | Floating-To-Fixed Interest Rate Swap Contracts Maturing On May 30, 2025 | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Notional amount | 25,000,000 | |
Cash flow hedges | Interest rate risk | Floating-to-fixed interest rate swap, maturing on August 25, 2023 | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Notional amount | 50,000,000 | 50,000,000 |
Cash flow hedges | Interest rate risk | Floating-to-fixed interest rate swap, maturing on August 25, 2026 | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Notional amount | $ 50,000,000 | $ 25,000,000 |
Cash flow hedges | Interest rate risk | Fixed rate | Floating-to-fixed interest rate swap, maturing on June 17, 2021 | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Interest rate | 2.85% | 0.96% |
Cash flow hedges | Interest rate risk | Fixed rate | Floating-To-Fixed Interest Rate Swap Contracts Maturing On April 6, 2022 | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Interest rate | 1.51% | |
Cash flow hedges | Interest rate risk | Fixed rate | Floating-to-fixed interest rate swap, maturing on April 30, 2023 | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Interest rate | 1.06% | 0.27% |
Cash flow hedges | Interest rate risk | Fixed rate | Floating-To-Fixed Interest Rate Swap Contracts Maturing On April 30, 2024 | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Interest rate | 0.78% | 2.85% |
Cash flow hedges | Interest rate risk | Fixed rate | Floating-To-Fixed Interest Rate Swap Contracts Maturing On April 30, 2025 | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Interest rate | 1.59% | |
Cash flow hedges | Interest rate risk | Fixed rate | Floating-To-Fixed Interest Rate Swap Contracts Maturing On May 30, 2025 | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Interest rate | 1.23% | |
Cash flow hedges | Interest rate risk | Fixed rate | Floating-to-fixed interest rate swap, maturing on August 25, 2023 | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Interest rate | 1.18% | 1.51% |
Cash flow hedges | Interest rate risk | Fixed rate | Floating-to-fixed interest rate swap, maturing on August 25, 2026 | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Interest rate | 1.34% | 1.06% |
Financial assets included in prepaid expenses, deposits and other current assets | Cash flow hedges | Interest rate risk | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Financial assets, carrying value | $ 1,322,000 | $ 0 |
Financial assets included in prepaid expenses, deposits and other current assets | Cash flow hedges | Interest rate risk | Floating-to-fixed interest rate swap, maturing on June 17, 2021 | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Financial assets, carrying value | 0 | 0 |
Financial assets included in prepaid expenses, deposits and other current assets | Cash flow hedges | Interest rate risk | Floating-To-Fixed Interest Rate Swap Contracts Maturing On April 6, 2022 | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Financial assets, carrying value | 32,000 | |
Financial assets included in prepaid expenses, deposits and other current assets | Cash flow hedges | Interest rate risk | Floating-to-fixed interest rate swap, maturing on April 30, 2023 | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Financial assets, carrying value | 167,000 | 0 |
Financial assets included in prepaid expenses, deposits and other current assets | Cash flow hedges | Interest rate risk | Floating-To-Fixed Interest Rate Swap Contracts Maturing On April 30, 2024 | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Financial assets, carrying value | 624,000 | 0 |
Financial assets included in prepaid expenses, deposits and other current assets | Cash flow hedges | Interest rate risk | Floating-To-Fixed Interest Rate Swap Contracts Maturing On April 30, 2025 | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Financial assets, carrying value | 0 | |
Financial assets included in prepaid expenses, deposits and other current assets | Cash flow hedges | Interest rate risk | Floating-To-Fixed Interest Rate Swap Contracts Maturing On May 30, 2025 | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Financial assets, carrying value | 171,000 | |
Financial assets included in prepaid expenses, deposits and other current assets | Cash flow hedges | Interest rate risk | Floating-to-fixed interest rate swap, maturing on August 25, 2023 | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Financial assets, carrying value | 0 | 0 |
Financial assets included in prepaid expenses, deposits and other current assets | Cash flow hedges | Interest rate risk | Floating-to-fixed interest rate swap, maturing on August 25, 2026 | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Financial assets, carrying value | 328,000 | 0 |
Accounts payable and accrued liabilities (1) | Cash flow hedges | Interest rate risk | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Financial liabilities, carrying value | (4,026,000) | (10,944,000) |
Accounts payable and accrued liabilities (1) | Cash flow hedges | Interest rate risk | Floating-to-fixed interest rate swap, maturing on June 17, 2021 | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Financial liabilities, carrying value | (2,272,000) | (630,000) |
Accounts payable and accrued liabilities (1) | Cash flow hedges | Interest rate risk | Floating-To-Fixed Interest Rate Swap Contracts Maturing On April 6, 2022 | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Financial liabilities, carrying value | (744,000) | |
Accounts payable and accrued liabilities (1) | Cash flow hedges | Interest rate risk | Floating-to-fixed interest rate swap, maturing on April 30, 2023 | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Financial liabilities, carrying value | (154,000) | (48,000) |
Accounts payable and accrued liabilities (1) | Cash flow hedges | Interest rate risk | Floating-To-Fixed Interest Rate Swap Contracts Maturing On April 30, 2024 | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Financial liabilities, carrying value | 0 | (3,800,000) |
Accounts payable and accrued liabilities (1) | Cash flow hedges | Interest rate risk | Floating-To-Fixed Interest Rate Swap Contracts Maturing On April 30, 2025 | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Financial liabilities, carrying value | (22,000) | |
Accounts payable and accrued liabilities (1) | Cash flow hedges | Interest rate risk | Floating-To-Fixed Interest Rate Swap Contracts Maturing On May 30, 2025 | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Financial liabilities, carrying value | 0 | |
Accounts payable and accrued liabilities (1) | Cash flow hedges | Interest rate risk | Floating-to-fixed interest rate swap, maturing on August 25, 2023 | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Financial liabilities, carrying value | (380,000) | (1,886,000) |
Accounts payable and accrued liabilities (1) | Cash flow hedges | Interest rate risk | Floating-to-fixed interest rate swap, maturing on August 25, 2026 | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Financial liabilities, carrying value | $ (454,000) | $ (755,000) |
FINANCIAL INSTRUMENTS (Summary
FINANCIAL INSTRUMENTS (Summary of hedged items) (Details) - Cash flow hedges - USD ($) $ in Thousands | Jan. 02, 2022 | Jan. 03, 2021 |
Disclosure of detailed information about hedging instruments [line items] | ||
Financial assets, carrying value | $ 0 | $ 0 |
Financial liabilities, carrying value | 0 | 0 |
Change in value used for calculating hedge ineffectiveness | 64,809 | (9,038) |
Cash flow hedge reserve (AOCI) | (64,809) | 9,038 |
Foreign currency risk | Forecast sales | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Financial assets, carrying value | 0 | 0 |
Financial liabilities, carrying value | 0 | 0 |
Change in value used for calculating hedge ineffectiveness | 2,554 | (4,104) |
Cash flow hedge reserve (AOCI) | (2,554) | 4,104 |
Foreign currency risk | Forecast expenses | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Financial assets, carrying value | 0 | 0 |
Financial liabilities, carrying value | 0 | 0 |
Change in value used for calculating hedge ineffectiveness | 4 | 1,626 |
Cash flow hedge reserve (AOCI) | (4) | (1,626) |
Commodity risk | Forecast purchases | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Financial assets, carrying value | 0 | 0 |
Financial liabilities, carrying value | 0 | 0 |
Change in value used for calculating hedge ineffectiveness | 64,813 | 4,205 |
Cash flow hedge reserve (AOCI) | (64,813) | (4,205) |
Interest rate risk | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Financial assets, carrying value | 0 | 0 |
Financial liabilities, carrying value | 0 | 0 |
Change in value used for calculating hedge ineffectiveness | (2,562) | (10,765) |
Cash flow hedge reserve (AOCI) | $ 2,562 | $ 10,765 |
FINANCIAL INSTRUMENTS (Financia
FINANCIAL INSTRUMENTS (Financial expenses, net) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 02, 2022 | Jan. 03, 2021 | |
Financial Instruments [Abstract] | ||
Interest expense on financial liabilities recorded at amortized cost | $ 14,923 | $ 30,205 |
Bank and other financial charges (2) | 8,823 | 14,627 |
Interest accretion on discounted lease obligations | 2,650 | 3,227 |
Interest accretion on discounted provisions | 153 | 242 |
Foreign exchange loss | 782 | 229 |
Financial expenses, net (note 15(c)) | 27,331 | 48,530 |
Borrowing costs recognised as expense | 1,600 | $ 1,600 |
Borrowing costs incurred for amendments of loans and notes agreements | $ 3,900 |
FINANCIAL INSTRUMENTS (Hedging
FINANCIAL INSTRUMENTS (Hedging components of other comprehensive income) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 02, 2022 | Jan. 03, 2021 | |
Disclosure of detailed information about hedges [line items] | ||
Net gain (loss) on derivatives designated as cash flow hedges | $ (36) | $ (5) |
Cash flow hedges (note 15(d)) | 73,847 | (8,503) |
Foreign currency risk | ||
Disclosure of detailed information about hedges [line items] | ||
Gains (losses) on cash flow hedges, before tax | 3,599 | 502 |
Cash flow hedges (note 15(d)) | (14) | 29 |
Foreign currency risk | Net sales | ||
Disclosure of detailed information about hedges [line items] | ||
Reclassification adjustments on cash flow hedges, before tax | 3,326 | (242) |
Foreign currency risk | Cost of sales | ||
Disclosure of detailed information about hedges [line items] | ||
Reclassification adjustments on cash flow hedges, before tax | 0 | 8,483 |
Foreign currency risk | Selling, general and administrative expenses | ||
Disclosure of detailed information about hedges [line items] | ||
Reclassification adjustments on cash flow hedges, before tax | (1,992) | 331 |
Foreign currency risk | Financial expenses, net | ||
Disclosure of detailed information about hedges [line items] | ||
Reclassification adjustments on cash flow hedges, before tax | 146 | (2,358) |
Commodity risk | ||
Disclosure of detailed information about hedges [line items] | ||
Gains (losses) on cash flow hedges, before tax | 83,130 | (12,699) |
Commodity risk | Inventories | ||
Disclosure of detailed information about hedges [line items] | ||
Income Tax Relating To Reclassification Adjustments On Cash Flow Hedges, Before Tax | (22,515) | 9,837 |
Interest rate risk | ||
Disclosure of detailed information about hedges [line items] | ||
Gains (losses) on cash flow hedges, before tax | $ 8,203 | (12,381) |
Cash flow hedges | ||
Disclosure of detailed information about hedges [line items] | ||
Cash flow hedges (note 15(d)) | $ 9,000 |
SHARE-BASED COMPENSATION (Stock
SHARE-BASED COMPENSATION (Stock options and restricted share units Narrative) (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||
Jan. 02, 2022shares$ / shares | Jan. 02, 2022USD ($)galshares$ / shares | Jan. 03, 2021shares$ / shares | Jan. 03, 2021USD ($)shares | Jan. 02, 2022shares$ / shares | Jan. 03, 2021shares$ / shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Number of common shares issuable pursuant to the exercise of stock options and vesting of Treasury RSUs for the plan (in shares) | 12,000,632 | 12,000,632 | ||||
Number of shares remained authorized for future issuance under the plan (in shares) | 132,596 | 132,596 | ||||
Outstanding options exercisable (in shares) | 1,304,338 | 1,304,338 | ||||
Weighted average exercise price of share options exercisable in share-based payment arrangement | $ / shares | $ 36.85 | $ 36.73 | ||||
Weighted average share price for share options in share-based payment arrangement exercised during period at date of exercise | (per share) | $ 48.12 | $ 40.58 | $ 30.48 | |||
Weighted average fair value of options granted (in dollars per share) | $ / shares | $ 5.09 | |||||
Compensation expense included in selling, general and administrative expenses and cost of sales | $ | $ 37,660 | $ 1,954 | ||||
Shares granted (in shares) | 1,387,000 | |||||
Exercise price, share options granted | $ / shares | $ 26.43 | |||||
Stock Appreciation Rights | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Weighted average fair value of options granted (in dollars per share) | $ / shares | $ 5.60 | |||||
Compensation expense included in selling, general and administrative expenses and cost of sales | $ | $ 1,500 | $ 100 | ||||
Shares granted (in shares) | gal | 824,406 | |||||
Exercise price, share options granted | $ / shares | $ 30 | |||||
Vesting period | 2 years | |||||
Number of outstanding shares vested (in shares) | gal | 0 | |||||
Treasury RSUs | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Compensation expense included in selling, general and administrative expenses and cost of sales | $ | $ (200) | $ 600 | ||||
Vesting period | 5 years | |||||
Number of outstanding shares vested (in shares) | 0 | 0 | ||||
Percentage of awards contingent on achievement of performance conditions | 50.00% | |||||
Stock options | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Compensation expense included in selling, general and administrative expenses and cost of sales | $ | $ 2,800 | $ 1,800 | ||||
Non-Treasury RSUs | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Compensation expense included in selling, general and administrative expenses and cost of sales | $ | $ 33,300 | $ (500) | ||||
Vesting period | 3 years | |||||
Number of outstanding shares vested (in shares) | 0 | 0 | ||||
Ratio of awards that can vest to the actual number of shares awarded | 2 | |||||
CAD | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Outstanding options exercisable (in shares) | 1,235,845 | 1,235,845 | ||||
USD | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Outstanding options exercisable (in shares) | 433,962 | 334,448 | 433,962 | 334,448 | ||
Weighted average exercise price of share options exercisable in share-based payment arrangement | $ / shares | $ 29.01 | $ 29.01 |
SHARE-BASED COMPENSATION (Outst
SHARE-BASED COMPENSATION (Outstanding stock options) (Details) | 12 Months Ended | ||||||
Jan. 02, 2022shares$ / shares | Jan. 02, 2022shares$ / shares$ / shares | Jan. 03, 2021shares$ / shares | Jan. 03, 2021shares$ / shares$ / shares | Jan. 03, 2021$ / shares | Dec. 29, 2019$ / shares | Dec. 29, 2019$ / shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||
Forfeited (in shares) | (68,000) | (68,000) | |||||
Weighted average exercise price of share options forfeited in share-based payment arrangement | $ / shares | $ 29.01 | ||||||
Granted (in shares) | 1,387,000 | 1,387,000 | |||||
Weighted average exercise price of share options granted in share-based payment arrangement | $ / shares | $ 26.43 | ||||||
CAD | |||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||
Number, outstanding, beginning of fiscal period (in shares) | 1,463,000 | 1,463,000 | 1,550,000 | 1,550,000 | |||
Weighted average exercise price of share options outstanding in share-based payment arrangement | $ / shares | $ 36.85 | $ 36.85 | $ 36.33 | $ 36.33 | $ 35.65 | ||
Exercised (in shares) | (227,000) | (227,000) | (87,000) | (87,000) | |||
Weighted average exercise price of share options exercised in share-based payment arrangement | $ / shares | $ 33.48 | $ 24.22 | |||||
Number, outstanding, end of fiscal period (in shares) | 1,236,000 | 1,236,000 | 1,463,000 | 1,463,000 | |||
USD | |||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||
Number, outstanding, beginning of fiscal period (in shares) | 2,056,000 | 2,056,000 | 669,000 | 669,000 | |||
Weighted average exercise price of share options outstanding in share-based payment arrangement | (per share) | $ 27.21 | $ 27.21 | $ 27.27 | $ 29.01 | |||
Number, outstanding, end of fiscal period (in shares) | 1,988,000 | 1,988,000 | 2,056,000 | 2,056,000 |
SHARE-BASED COMPENSATION (Black
SHARE-BASED COMPENSATION (Black-Scholes option pricing model for the stock option grants) (Details) | 12 Months Ended |
Jan. 02, 2022$ / shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Exercise price, share options granted | $ 26.43 |
Risk-free interest rate | 0.39% |
Expected volatility | 36.47% |
Expected life | 5 years |
Expected dividend yield | 2.57% |
Stock Appreciation Rights | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Exercise price, share options granted | $ 30 |
Risk-free interest rate | 0.22% |
Expected volatility | 43.86% |
Expected life | 3 years |
Expected dividend yield | 2.32% |
SHARE-BASED COMPENSATION SHARE-
SHARE-BASED COMPENSATION SHARE-BASED COMPENSATION (Stock options issued and outstanding and exercisable) (Details) | 12 Months Ended | ||
Jan. 02, 2022shares$ / shares | Jan. 03, 2021shares | Dec. 29, 2019shares | |
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Options exercisable, number (in shares) | 1,304,338 | ||
CAD | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Options issued and outstanding, number (in shares) | 1,236,000 | 1,463,000 | 1,550,000 |
Options exercisable, number (in shares) | 1,235,845 | ||
CAD | Exercise Price Range One [Member] | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Exercise price of outstanding share options | $ / shares | $ 30.46 | ||
Options issued and outstanding, number (in shares) | 43,000 | ||
Weighted average remaining contractual life of outstanding share options | 0 years | ||
Options exercisable, number (in shares) | 43,000 | ||
CAD | Exercise Price Range Two [Member] | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Exercise price of outstanding share options | $ / shares | $ 33.01 | ||
Options issued and outstanding, number (in shares) | 463,000 | ||
Weighted average remaining contractual life of outstanding share options | 2 years | ||
Options exercisable, number (in shares) | 463,000 | ||
CAD | Exercise Price Range Three [Member] | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Exercise price of outstanding share options | $ / shares | $ 38.01 | ||
Options issued and outstanding, number (in shares) | 447,000 | ||
Weighted average remaining contractual life of outstanding share options | 1 year | ||
Options exercisable, number (in shares) | 447,000 | ||
CAD | Exercise Price Range Four [Member] | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Exercise price of outstanding share options | $ / shares | $ 42.27 | ||
Options issued and outstanding, number (in shares) | 283,000 | ||
Weighted average remaining contractual life of outstanding share options | 4 years | ||
Options exercisable, number (in shares) | 283,000 | ||
CAD | CAD Total | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Options issued and outstanding, number (in shares) | 1,236,000 | ||
Options exercisable, number (in shares) | 1,236,000 | ||
CAD | US Total | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Options issued and outstanding, number (in shares) | 3,224,000 | ||
Options exercisable, number (in shares) | 1,670,000 | ||
USD | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Options issued and outstanding, number (in shares) | 1,988,000 | 2,056,000 | 669,000 |
Options exercisable, number (in shares) | 433,962 | 334,448 | |
USD | Exercise Price Range One [Member] | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Exercise price of outstanding share options | $ / shares | $ 20.77 | ||
Options issued and outstanding, number (in shares) | 537,000 | ||
Weighted average remaining contractual life of outstanding share options | 6 years | ||
Options exercisable, number (in shares) | 0 | ||
USD | Exercise Price Range Two [Member] | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Exercise price of outstanding share options | $ / shares | $ 29.01 | ||
Options issued and outstanding, number (in shares) | 601,000 | ||
Weighted average remaining contractual life of outstanding share options | 3 years | ||
Options exercisable, number (in shares) | 434,000 | ||
USD | Exercise Price Range Three [Member] | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Exercise price of outstanding share options | $ / shares | $ 30 | ||
Options issued and outstanding, number (in shares) | 850,000 | ||
Weighted average remaining contractual life of outstanding share options | 6 years | ||
Options exercisable, number (in shares) | 0 |
SHARE-BASED COMPENSATION (Out_2
SHARE-BASED COMPENSATION (Outstanding Treasury RSUs) (Details) - Treasury RSUs | 12 Months Ended | |
Jan. 02, 2022USD ($)shares | Jan. 03, 2021USD ($)shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number, outstanding, beginning of fiscal year (in shares) | shares | 43,000 | 114,000 |
Granted (in shares) | shares | 5,000 | |
Granted for dividends declared (in shares) | shares | 1,000 | 1,000 |
Settled through the issuance of common shares (in shares) | shares | (5,000) | (72,000) |
Forfeited (in shares) | shares | (21,000) | |
Number, outstanding, end of fiscal year (in shares) | shares | 23,000 | 43,000 |
Weighted average fair value per unit, outstanding, beginning of fiscal year (in dollars per share) | $ | $ 30.47 | $ 31.42 |
Granted (in dollars per share) | $ | 36.45 | |
Granted for dividends declared (in dollars per share) | $ | 37.93 | 12.58 |
Settled through the issuance of common shares (in dollars per share) | $ | 29.68 | 31.65 |
Forfeited (in dollars per shares) | $ | 29.95 | |
Weighted average fair value per unit, outstanding, end of fiscal year (in dollars per share) | $ | $ 32.55 | $ 30.47 |
SHARE-BASED COMPENSATION (Out_3
SHARE-BASED COMPENSATION (Outstanding Non-Treasury RSUs) (Details) - Non-Treasury RSUs | 12 Months Ended | |
Jan. 02, 2022USD ($)shares | Jan. 03, 2021USD ($)shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number, outstanding, beginning of fiscal year (in shares) | shares | 1,877,000 | 1,422,000 |
Granted, net of granted for performance and dividends declared (in shares) | shares | 733,000 | 967,000 |
Granted for dividends declared (in shares) | shares | 25,000 | 25,000 |
Settled - common shares (in shares) | shares | (127,000) | (128,000) |
Settled - payment of withholding taxes (in shares) | shares | (70,000) | (67,000) |
Forfeited (in shares) | shares | (492,000) | (342,000) |
Number, outstanding, end of fiscal year (in shares) | shares | 1,946,000 | 1,877,000 |
Weighted average fair value per unit, outstanding, beginning of fiscal year (in dollars per share) | $ | $ 29.38 | $ 31.42 |
Granted (in dollars per share) | $ | 30.38 | 25.47 |
Granted for dividends declared (in dollars per share) | $ | 37.69 | 12.58 |
Settled - common shares (in dollars per share) | $ | 25.14 | 29.06 |
Settled - payment of withholding taxes (in dollars per share) | $ | 25.48 | 29.16 |
Forfeited (in dollars per shares) | $ | 32.46 | 25.70 |
Weighted average fair value per unit, outstanding, end of fiscal year (in dollars per share) | $ | $ 29.50 | $ 29.38 |
SHARE-BASED COMPENSATION (Defer
SHARE-BASED COMPENSATION (Deferred share unit plan Narrative) (Details) | 12 Months Ended | ||
Jan. 02, 2022USD ($)shares | Jan. 03, 2021USD ($)shares | Dec. 29, 2019shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Compensation expense included in selling, general and administrative expenses | $ 37,660,000 | $ 1,954,000 | |
DSUs | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Minimum percentage of annual board retainer in the form of share-based payment arrangement | 50.00% | ||
Number of other equity instruments outstanding (in shares) | shares | 313,271 | 301,077 | 235,000 |
Other equity instruments outstanding amount | $ 13,300,000 | $ 8,400,000 | |
Fair value per unit outstanding (in dollars per share) | 42.39 | 28.01 | |
Compensation expense included in selling, general and administrative expenses | $ 2,500,000 | $ 1,800,000 |
SHARE-BASED COMPENSATION SHAR_2
SHARE-BASED COMPENSATION SHARE-BASED COMPENSATION (Outstanding DSUs) (Details) - DSUs - shares | 12 Months Ended | |
Jan. 02, 2022 | Jan. 03, 2021 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number, outstanding, beginning of fiscal year (in shares) | 301,077 | 235,000 |
Granted (in shares) | 58,000 | 90,000 |
Granted for dividends declared (in shares) | 4,000 | 2,000 |
Forfeited (in shares) | (50,000) | (26,000) |
Number, outstanding, end of fiscal year (in shares) | 313,271 | 301,077 |
SHARE-BASED COMPENSATION (Emplo
SHARE-BASED COMPENSATION (Employee share purchase plans) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 02, 2022 | Jan. 03, 2021 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of shares remained authorized for future issuance under the plan (in shares) | 132,596 | |
Compensation expense included in selling, general and administrative expenses | $ 37,660 | $ 1,954 |
Employee share purchase plan | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Percentage of payroll deductions from salary to purchase from Treasury (up to) | 10.00% | |
Share price as a percentage of current share price | 90.00% | |
Service period for share-based compensation plan | 2 years | |
Common shares reserved for issuance under the plans (in shares) | 5,000,000 | |
Number of shares remained authorized for future issuance under the plan (in shares) | 4,479,452 | |
Compensation expense included in selling, general and administrative expenses | $ 100 | $ 100 |
SUPPLEMENTARY INFORMATION REL_3
SUPPLEMENTARY INFORMATION RELATING TO THE NATURE OF EXPENSES (Selling, general and administrative expenses) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 02, 2022 | Jan. 03, 2021 | |
Analysis of income and expense [abstract] | ||
Selling expenses | $ 68,591 | $ 76,327 |
Administrative expenses | 147,260 | 101,492 |
Distribution expenses | 98,320 | 94,487 |
Selling, general and administrative expenses | $ 314,171 | $ 272,306 |
SUPPLEMENTARY INFORMATION REL_4
SUPPLEMENTARY INFORMATION RELATING TO THE NATURE OF EXPENSES (Employee benefit expenses) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 02, 2022 | Jan. 03, 2021 | |
Analysis of income and expense [abstract] | ||
Salaries, wages and other short-term employee benefits | $ 501,036 | $ 423,335 |
Share-based payments | 37,660 | 1,954 |
Post-employment benefits | 28,085 | 44,645 |
Employee benefits expenses | $ 566,781 | $ 469,934 |
SUPPLEMENTARY INFORMATION REL_5
SUPPLEMENTARY INFORMATION RELATING TO THE NATURE OF EXPENSES (Government assistance) (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | 14 Months Ended | ||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jan. 02, 2022 | Jan. 03, 2021 | Jan. 03, 2022 | |
Analysis of income and expense [abstract] | |||||||
Manufacturing costs | $ 108.4 | ||||||
Write-down of inventory to net realizable value | $ 55.2 | 108.1 | |||||
Excess commodity contracts | 11.3 | ||||||
Costs of sales, transfers | 8.4 | ||||||
Net gain in costs of sales | 46 | 9.6 | |||||
Disclosure of costs of sale [Line Items] | |||||||
Income from government grants and tax credits, CARES Act | 18.3 | ||||||
Accrued insurance recoveries | 100.7 | 111 | $ 212.8 | ||||
Government assistance | 34.1 | 9.2 | |||||
Government assistance related to employment subsidies | 0 | 3.9 | |||||
Net gain in costs of sales | 46 | 9.6 | |||||
Repairs, salary and benefits continuation, and other expense | 54.7 | 101.4 | |||||
Manufacturing costs | 108.4 | ||||||
Write-down of inventory to net realizable value | 55.2 | 108.1 | |||||
Excess commodity contracts | 11.3 | ||||||
Costs of sales, transfers | 8.4 | ||||||
Proceeds from insurance recoveries | $ 50 | $ 50 | $ 50 | $ 50 | 200 | ||
Retail product line | |||||||
Analysis of income and expense [abstract] | |||||||
Write-down of inventory to net realizable value | 4.2 | ||||||
Disclosure of costs of sale [Line Items] | |||||||
Write-down of inventory to net realizable value | 4.2 | ||||||
Write-down of property, plant and equipment | 4.6 | ||||||
Cash flows from operating activities | |||||||
Disclosure of costs of sale [Line Items] | |||||||
Accrued insurance recoveries | 50 | ||||||
Proceeds from insurance recoveries | 46.4 | ||||||
Cash flows from financing activities | |||||||
Disclosure of costs of sale [Line Items] | |||||||
Proceeds from insurance recoveries | 103.6 | ||||||
Financial assets included in prepaid expenses, deposits and other current assets | |||||||
Disclosure of costs of sale [Line Items] | |||||||
Accrued insurance recoveries | $ 12.8 | $ 61 |
RESTRUCTURING AND ACQUISITION_3
RESTRUCTURING AND ACQUISITION-RELATED COSTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 02, 2022 | Jan. 03, 2021 | |
Disclosure of transactions recognised separately from acquisition of assets and assumption of liabilities in business combination [line items] | ||
Acquisition-related transaction costs | $ 1,526 | $ 0 |
Restructuring and acquisition-related costs | 8,225 | 48,154 |
Acquisition-related transaction costs | 1,526 | 0 |
Restructuring and acquisition-related costs (note 18) | 8,225 | 48,154 |
Employee termination and benefit costs | ||
Disclosure of transactions recognised separately from acquisition of assets and assumption of liabilities in business combination [line items] | ||
Restructuring-related costs | 251 | 10,900 |
Restructuring-related costs | 251 | 10,900 |
Exit, relocation and other costs | ||
Disclosure of transactions recognised separately from acquisition of assets and assumption of liabilities in business combination [line items] | ||
Restructuring-related costs | 3,312 | 13,321 |
Restructuring and acquisition-related costs | 5,900 | |
Restructuring-related costs | 3,312 | 13,321 |
Restructuring and acquisition-related costs (note 18) | 5,900 | |
Net loss on disposal and write-downs of property, plant and equipment, right-of-use assets and software related to exit activities | ||
Disclosure of transactions recognised separately from acquisition of assets and assumption of liabilities in business combination [line items] | ||
Restructuring-related costs | 3,136 | 23,933 |
Restructuring-related costs | 3,136 | 23,933 |
SG&A Workforce Reductions [Member] | ||
Disclosure of transactions recognised separately from acquisition of assets and assumption of liabilities in business combination [line items] | ||
Restructuring and acquisition-related costs | 2,400 | |
Restructuring and acquisition-related costs (note 18) | 2,400 | |
Other costs | ||
Disclosure of transactions recognised separately from acquisition of assets and assumption of liabilities in business combination [line items] | ||
Restructuring and acquisition-related costs | 600 | 6,600 |
Restructuring and acquisition-related costs (note 18) | 600 | 6,600 |
Frontier Yarns Acquisition | ||
Disclosure of transactions recognised separately from acquisition of assets and assumption of liabilities in business combination [line items] | ||
Restructuring and acquisition-related costs | 1,500 | |
Restructuring and acquisition-related costs (note 18) | 1,500 | |
United States | Closure of manufacturing facility | ||
Disclosure of transactions recognised separately from acquisition of assets and assumption of liabilities in business combination [line items] | ||
Restructuring and acquisition-related costs | 2,000 | 22,500 |
Restructuring and acquisition-related costs (note 18) | 2,000 | 22,500 |
MEXICO | Closure of manufacturing facility | ||
Disclosure of transactions recognised separately from acquisition of assets and assumption of liabilities in business combination [line items] | ||
Restructuring and acquisition-related costs | 4,100 | 10,800 |
Restructuring and acquisition-related costs (note 18) | $ 4,100 | $ 10,800 |
INCOME TAXES (Reasons for diffe
INCOME TAXES (Reasons for difference and related tax effects) (Details) $ in Thousands, € in Millions, ৳ in Millions, ¥ in Millions, ¥ in Millions, £ in Millions, $ in Millions, $ in Millions, $ in Millions, $ in Millions | 12 Months Ended | ||||||||||
Jan. 02, 2022USD ($) | Jan. 02, 2022CAD ($) | Jan. 02, 2022GBP (£) | Jan. 02, 2022EUR (€) | Jan. 02, 2022AUD ($) | Jan. 02, 2022MXN ($) | Jan. 02, 2022CNY (¥) | Jan. 02, 2022BDT (৳) | Jan. 02, 2022COP ($) | Jan. 02, 2022JPY (¥) | Jan. 03, 2021USD ($) | |
Income Taxes [Abstract] | |||||||||||
Earnings (loss) before income taxes | $ 624,558 | $ (0.1) | £ (0.1) | € (0.4) | $ (0.3) | $ (0.3) | ¥ (0.1) | ৳ 0 | $ (0.1) | ¥ 0 | $ (229,373) |
Applicable statutory tax rate | 26.50% | 26.50% | 26.50% | 26.50% | 26.50% | 26.50% | 26.50% | 26.50% | 26.50% | 26.50% | 26.50% |
Income taxes at applicable statutory rate | $ 165,508 | $ (60,784) | |||||||||
Effect of different tax rates and additional income taxes in other jurisdictions | (157,321) | 36,397 | |||||||||
Income tax and other adjustments related to prior taxation years | 73 | (1,417) | |||||||||
Tax Effect From Revaluation Of Deferred Tax Liabilities | (8,593) | (5,150) | |||||||||
Tax effect of tax losses | 11,035 | 22,451 | |||||||||
Effect of non-deductible expenses and other | 6,673 | 4,412 | |||||||||
Total income tax expense (recovery) | $ 17,375 | $ (4,091) | |||||||||
Average effective tax rate | 2.80% | 2.80% | 2.80% | 2.80% | 2.80% | 2.80% | 2.80% | 2.80% | 2.80% | 2.80% | 1.80% |
INCOME TAXES (Details of income
INCOME TAXES (Details of income tax expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 02, 2022 | Jan. 03, 2021 | |
Current tax expense (income) and adjustments for current tax of prior periods [abstract] | ||
Current income taxes, includes a recovery of $1,511 (2019 - expense of $99) relating to prior taxation years | $ 18,340 | $ 3,633 |
Origination and reversal of temporary differences | (4,541) | (25,119) |
Recognition of previously de-recognized tax benefits related to tax losses and temporary differences | (8,593) | (5,150) |
Non-recognition of tax benefits related to tax losses and temporary differences | 11,035 | 22,451 |
Adjustments relating to prior taxation years | 1,134 | 94 |
Deferred income taxes | (965) | (7,724) |
Total income tax expense (recovery) | 17,375 | (4,091) |
Adjustments for current tax of prior periods | $ (1,061) | $ (1,511) |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - USD ($) $ in Millions | Jan. 02, 2022 | Jan. 03, 2021 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Tax benefit arising from previously unrecognised tax loss, tax credit or temporary difference of prior period used to reduce current tax expense | $ 102.7 | $ 100.4 |
Pro forma | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Effect of different tax rates on earnings of foreign subsidiaries | 560 | |
Pro forma | Unrealised foreign exchange gains (losses) | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred income taxes (note 18) | $ 61 |
INCOME TAXES (Significant compo
INCOME TAXES (Significant components of deferred income tax assets and liabilities) (Details) - USD ($) $ in Thousands | Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Unrecognized deferred income tax assets | $ (102,700) | $ (100,400) | |
Net deferred tax assets | 17,726 | 17,689 | |
Deferred income taxes | 17,726 | 17,689 | $ 9,917 |
Before Offset Amount [Member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Unrecognized deferred income tax assets | (102,749) | (100,424) | |
Net deferred tax assets | 49,857 | 50,220 | |
Deferred tax liabilities | (32,131) | (32,531) | |
Deferred income taxes | 17,726 | 17,689 | |
Before Offset Amount [Member] | Temporary differences | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 152,606 | 150,644 | |
Before Offset Amount [Member] | Non-capital losses | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 102,138 | 99,659 | |
Before Offset Amount [Member] | Non-deductible reserves and accruals | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 26,304 | 28,211 | |
Before Offset Amount [Member] | Property, plant and equipment | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 16,434 | 15,319 | |
Deferred tax liabilities | (34,668) | (28,643) | |
Before Offset Amount [Member] | Other | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 7,730 | 7,455 | |
Before Offset Amount [Member] | Intangible assets | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax liabilities | $ 2,537 | $ (3,888) |
INCOME TAXES (Changes to deferr
INCOME TAXES (Changes to deferred income tax assets and liabilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 02, 2022 | Jan. 03, 2021 | |
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Balance, beginning of fiscal year, net | $ 17,689 | $ 9,917 |
Changes in deferred tax liability (asset) [abstract] | ||
Recognized in the statements of earnings | 965 | 7,724 |
Business acquisitions | (979) | 0 |
Other | 51 | 48 |
Balance, end of fiscal year, net | 17,726 | 17,689 |
Non-capital losses | ||
Changes in deferred tax liability (asset) [abstract] | ||
Recognized in the statements of earnings | 3,462 | 155 |
Non-deductible reserves and accruals | ||
Changes in deferred tax liability (asset) [abstract] | ||
Recognized in the statements of earnings | (1,944) | 16,044 |
Property, plant and equipment | ||
Changes in deferred tax liability (asset) [abstract] | ||
Recognized in the statements of earnings | (4,909) | 4,400 |
Intangible assets | ||
Changes in deferred tax liability (asset) [abstract] | ||
Recognized in the statements of earnings | 6,425 | 5,344 |
Other | ||
Changes in deferred tax liability (asset) [abstract] | ||
Recognized in the statements of earnings | 274 | (825) |
Unrecognized deferred income tax assets | ||
Changes in deferred tax liability (asset) [abstract] | ||
Recognized in the statements of earnings | $ (2,343) | $ (17,394) |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Jan. 02, 2022 | Jan. 03, 2021 | |
Earnings per share [abstract] | ||
Net earnings (loss) - basic and diluted | $ 607,183 | $ (225,282) |
Basic earnings (loss) per share: | ||
Basic weighted average number of common shares outstanding (in shares) | 197,014,000 | 198,361,000 |
Basic earnings per share (in dollars per share) | $ 3.08 | $ (1.14) |
Diluted earnings (loss) per share: | ||
Basic weighted average number of common shares outstanding (in shares) | 197,014,000 | 198,361,000 |
Plus dilutive impact of stock options, Treasury RSUs and common shares held in trust (in shares) | 581,000 | 0 |
Diluted weighted average number of common shares outstanding (in shares) | 197,595,000 | 198,361,000 |
Diluted earnings per share (in dollars per share) | $ 3.07 | $ (1.14) |
EARNINGS PER SHARE (Narrative)
EARNINGS PER SHARE (Narrative) (Details) - shares | 12 Months Ended | |
Jan. 02, 2022 | Jan. 03, 2021 | |
Stock options | ||
Earnings per share [line items] | ||
Shares excluded from calculation of earnings per share (in shares) | 0 | 3,519,127 |
Treasury RSUs | ||
Earnings per share [line items] | ||
Shares excluded from calculation of earnings per share (in shares) | 0 | 43,485 |
DEPRECIATION AND AMORTIZATION_2
DEPRECIATION AND AMORTIZATION (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 02, 2022 | Jan. 03, 2021 | |
Depreciation and amortisation expense [abstract] | ||
Depreciation | $ 92,176 | $ 108,452 |
Depreciation of right-of-use assets (note 10) | 13,973 | 14,656 |
Adjustment for the variation of depreciation included in inventories at the beginning and end of the year | 11,177 | 3,676 |
Amortization of intangible assets, excluding software (note 11) | 12,818 | 14,302 |
Amortization of software (note 11) | 5,258 | 6,104 |
Depreciation and amortization included in net earnings | $ 135,402 | $ 147,190 |
SUPPLEMENTAL CASH FLOW DISCLO_3
SUPPLEMENTAL CASH FLOW DISCLOSURE (Adjustments to reconcile net earnings to cash flows from operating activities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 02, 2022 | Jan. 03, 2021 | |
Cash flow statement [Abstract] | ||
Deferred income taxes (note 19) | $ (965) | $ (7,724) |
Unrealized net (gain) loss on foreign exchange and financial derivatives | (5,958) | 8,439 |
Timing differences between settlement of financial derivatives and transfer of deferred gains and losses in accumulated OCI to inventory and net earnings | 8,012 | (1,708) |
Other non-current assets | 2,246 | 1,530 |
Other non-current liabilities | 2,653 | 4,154 |
Adjustments to reconcile net earnings to cash flows from operating activities (note 21(a)) | $ 5,988 | $ 4,691 |
SUPPLEMENTAL CASH FLOW DISCLO_4
SUPPLEMENTAL CASH FLOW DISCLOSURE (Variations in non-cash transactions) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 02, 2022 | Jan. 03, 2021 | |
Cash flow statement [Abstract] | ||
Additions to property, plant and equipment and intangible assets included in accounts payable and accrued liabilities | $ (4,641) | $ 13,751 |
Proceeds on disposal of property, plant and equipment included in other current assets | 0 | (375) |
Additions to right-of-use assets included in lease obligations | 3,504 | 16,189 |
Non-cash ascribed value credited to share capital from shares issued or distributed pursuant to vesting of restricted share units and exercise of stock options | 4,515 | 7,552 |
Deferred compensation credited to contributed surplus | (2,075) | 0 |
Non-cash ascribed value credited to contributed surplus for dividends attributed to restricted share units | $ 943 | $ 336 |
SUPPLEMENTAL CASH FLOW DISCLO_5
SUPPLEMENTAL CASH FLOW DISCLOSURE (Changes in non-cash working capital balances) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 02, 2022 | Jan. 03, 2021 | |
Cash flow statement [Abstract] | ||
Trade accounts receivable | $ (135,103) | $ 125,150 |
Income taxes | 12,577 | (5,747) |
Inventories | (33,744) | 320,384 |
Prepaid expenses, deposits and other current assets | (18,964) | 18,199 |
Accounts payable and accrued liabilities | 78,495 | (62,476) |
Other adjustments to reconcile profit (loss) | $ (96,739) | $ 395,510 |
RELATED PARTY TRANSACTIONS (Com
RELATED PARTY TRANSACTIONS (Compensation expense recognized for key management personnel) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 02, 2022 | Jan. 03, 2021 | |
Related Party [Abstract] | ||
Short-term employee benefits | $ 12,296 | $ 7,754 |
Post-employment benefits | 907 | 170 |
Share-based payments | 30,460 | 1,721 |
Key management personnel compensation | $ 43,663 | $ 9,645 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) | 12 Months Ended | |
Jan. 02, 2022 | Jan. 03, 2021 | |
Disclosure of transactions between related parties [line items] | ||
Minimum usage fee commitment | $ 1,300,000 | |
Key management personnel | ||
Disclosure of transactions between related parties [line items] | ||
Expenses for airplane usage, related party transactions | 1.5 | $ 700,000 |
Amount in account payable, related party transactions | 0.3 | 100,000 |
DSUs | Key management personnel | ||
Disclosure of transactions between related parties [line items] | ||
Amount in account payable, related party transactions | $ 13,280,000 | $ 8,433,000 |
COMMITMENTS, GUARANTEES AND C_2
COMMITMENTS, GUARANTEES AND CONTINGENT LIABILITIES (Details) - USD ($) | Jan. 02, 2022 | Jan. 03, 2021 |
Disclosure of contingent liabilities [line items] | ||
Recorded liability with respect to guarantees | $ 1,149,500,000 | |
Financial guarantees, maximum potential liability | ||
Disclosure of contingent liabilities [line items] | ||
Maximum potential liability under guarantees | 121,300,000 | $ 54,600,000 |
Recorded liability with respect to guarantees | 0 | |
Financial guarantees, maximum potential liability | Surety bond | ||
Disclosure of contingent liabilities [line items] | ||
Maximum potential liability under guarantees | 10,500,000 | 10,500,000 |
Financial guarantees, maximum potential liability | Financial guarantees and standby letters of credit | ||
Disclosure of contingent liabilities [line items] | ||
Maximum potential liability under guarantees | $ 110,800,000 | $ 44,100,000 |
CAPITAL DISCLOSURES (Details)
CAPITAL DISCLOSURES (Details) $ / shares in Units, $ in Millions | 12 Months Ended | |
Jan. 02, 2022USD ($)$ / shares | Jan. 03, 2021$ / shares | |
Disclosure of objectives, policies and processes for managing capital [line items] | ||
Net debt leverage ratio | 0.7 | 3.5 |
Dividends paid | $ | $ 90.5 | |
Dividends declared per common share (in dollars per share) | $ / shares | $ 0.462 | $ 0.154 |
Bottom of range [member] | ||
Disclosure of objectives, policies and processes for managing capital [line items] | ||
Target net debt leverage ratio | 1 | |
Top of range [member] | ||
Disclosure of objectives, policies and processes for managing capital [line items] | ||
Target net debt leverage ratio | 2 |
DISAGGREGATION OF REVENUE (Net
DISAGGREGATION OF REVENUE (Net Sales) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 02, 2022 | Jan. 03, 2021 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | $ 2,922,570 | $ 1,981,276 |
United States | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 2,526,552 | 1,696,872 |
Canada | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 114,800 | 76,163 |
International | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 281,218 | 208,241 |
Activewear | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 2,364,740 | 1,498,408 |
Hosiery and underwear | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | $ 557,830 | $ 482,868 |
ENTITY-WIDE DISCLOSURES (Proper
ENTITY-WIDE DISCLOSURES (Property, plant and equipment, intangible assets, and goodwill by geographic area) (Details) - USD ($) $ in Thousands | Jan. 02, 2022 | Jan. 03, 2021 |
Disclosure of geographical areas [line items] | ||
Property plant and equipment, intangible assets, and goodwill | $ 1,667,965 | $ 1,452,782 |
United States | ||
Disclosure of geographical areas [line items] | ||
Property plant and equipment, intangible assets, and goodwill | 602,120 | 431,403 |
Canada | ||
Disclosure of geographical areas [line items] | ||
Property plant and equipment, intangible assets, and goodwill | 69,939 | 95,585 |
Honduras | ||
Disclosure of geographical areas [line items] | ||
Property plant and equipment, intangible assets, and goodwill | 346,256 | 323,617 |
Caribbean | ||
Disclosure of geographical areas [line items] | ||
Property plant and equipment, intangible assets, and goodwill | 486,876 | 448,278 |
Asia-Pacific | ||
Disclosure of geographical areas [line items] | ||
Property plant and equipment, intangible assets, and goodwill | 129,926 | 114,785 |
Other | ||
Disclosure of geographical areas [line items] | ||
Property plant and equipment, intangible assets, and goodwill | $ 32,848 | $ 39,114 |
ENTITY-WIDE DISCLOSURES (Major
ENTITY-WIDE DISCLOSURES (Major customers as a percentage of net sales) (Details) | 12 Months Ended | |
Jan. 02, 2022 | Jan. 03, 2021 | |
Customer A | ||
Disclosure of major customers [line items] | ||
Percentage of total net sales | 15.90% | 12.30% |
Customer B | ||
Disclosure of major customers [line items] | ||
Percentage of total net sales | 13.90% | 13.10% |
Customer C | ||
Disclosure of major customers [line items] | ||
Percentage of total net sales | 7.90% | 10.40% |