Cover
Cover - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Feb. 23, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 30, 2023 | ||
Current Fiscal Year End Date | --12-30 | ||
Document Transition Report | false | ||
Entity File Number | 001-38854 | ||
Entity Registrant Name | KONTOOR BRANDS, INC. | ||
Entity Incorporation, State or Country Code | NC | ||
Entity Tax Identification Number | 83-2680248 | ||
Entity Address, Address Line One | 400 N. Elm Street | ||
Entity Address, City or Town | Greensboro | ||
Entity Address, State or Province | NC | ||
Entity Address, Postal Zip Code | 27401 | ||
City Area Code | 336 | ||
Local Phone Number | 332-3400 | ||
Title of 12(b) Security | Common Stock, no par value | ||
Entity Trading Symbol | KTB | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2,334 | ||
Entity Common Stock, Shares Outstanding | 55,759,632 | ||
Documents Incorporated by Reference | Portions of the definitive Proxy Statement for the Annual Meeting of Shareholders to be held on April 18, 2024 are incorporated by reference into Part III of this Annual Report on Form 10-K, which definitive Proxy Statement shall be filed with the Securities and Exchange Commission within 120 days after the end of the fiscal year to which this Annual Report on Form 10-K relates. | ||
Entity Central Index Key | 0001760965 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 30, 2023 | |
Audit Information [Abstract] | |
Auditor Firm ID | 238 |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Greensboro, North Carolina |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 215,050 | $ 59,179 |
Accounts receivable, net | 217,673 | 225,858 |
Inventories | 500,353 | 596,836 |
Prepaid expenses and other current assets | 110,808 | 100,396 |
Total current assets | 1,043,884 | 982,269 |
Property, plant and equipment, net | 112,045 | 104,465 |
Operating lease assets | 54,812 | 51,029 |
Intangible assets, net | 12,497 | 13,361 |
Goodwill | 209,862 | 209,627 |
Deferred income tax assets | 75,081 | 67,282 |
Other assets | 137,258 | 154,228 |
TOTAL ASSETS | 1,645,439 | 1,582,261 |
Current liabilities | ||
Short-term borrowings | 0 | 7,280 |
Current portion of long-term debt | 20,000 | 10,000 |
Accounts payable | 180,220 | 206,262 |
Accrued liabilities | 171,414 | 196,989 |
Operating lease liabilities, current | 21,003 | 19,898 |
Total current liabilities | 392,637 | 440,429 |
Operating lease liabilities, noncurrent | 36,753 | 31,506 |
Deferred income tax liabilities | 5,611 | 6,919 |
Other liabilities | 74,604 | 70,031 |
Long-term debt | 763,921 | 782,619 |
Total liabilities | 1,273,526 | 1,331,504 |
Commitments and contingencies | ||
Equity | ||
Preferred Stock, no par value; shares authorized, 90,000,000; no shares outstanding at December 2023 and 2022 | 0 | 0 |
Common Stock, no par value; shares authorized, 600,000,000; outstanding shares of 55,720,251 at December 2023 and 55,516,872 at December 2022 | 0 | 0 |
Additional paid-in capital | 273,197 | 243,696 |
Retained earnings | 166,567 | 86,726 |
Accumulated other comprehensive loss | (67,851) | (79,665) |
Total equity | 371,913 | 250,757 |
TOTAL LIABILITIES AND EQUITY | $ 1,645,439 | $ 1,582,261 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock par value (in USD per share) | $ 0 | $ 0 |
Preferred stock authorized (in shares) | 90,000,000 | 90,000,000 |
Preferred stock outstanding (in shares) | 0 | 0 |
Common stock par value (in dollars per share) | $ 0 | $ 0 |
Common stock authorized (in shares) | 600,000,000 | 600,000,000 |
Common stock outstanding (in shares) | 55,720,251 | 55,516,872 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Income Statement [Abstract] | |||
Net revenues | $ 2,607,472 | $ 2,631,444 | $ 2,475,916 |
Costs and operating expenses | |||
Cost of goods sold | 1,519,635 | 1,497,076 | 1,368,190 |
Selling, general and administrative expenses | 768,568 | 777,703 | 824,747 |
Total costs and operating expenses | 2,288,203 | 2,274,779 | 2,192,937 |
Operating income | 319,269 | 356,665 | 282,979 |
Interest expense | (40,408) | (34,919) | (38,900) |
Interest income | 3,791 | 1,352 | 1,480 |
Other expense, net | (10,753) | (3,962) | (959) |
Income before income taxes | 271,899 | 319,136 | 244,600 |
Income taxes | 40,905 | 73,643 | 49,177 |
Net income | $ 230,994 | $ 245,493 | $ 195,423 |
Earnings per common share | |||
Basic (in USD per share) | $ 4.13 | $ 4.40 | $ 3.40 |
Diluted (in USD per share) | $ 4.06 | $ 4.31 | $ 3.31 |
Weighted average shares outstanding | |||
Basic (in shares) | 55,961 | 55,744 | 57,394 |
Diluted (in shares) | 56,931 | 56,962 | 59,086 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 230,994 | $ 245,493 | $ 195,423 |
Other comprehensive income | |||
Net change in foreign currency translation | 16,405 | (14,337) | (12,947) |
Net change in defined benefit pension plans | 670 | 4,420 | (288) |
Net change in derivative financial instruments | (5,261) | 23,008 | 15,286 |
Total other comprehensive income, net of related taxes | 11,814 | 13,091 | 2,051 |
Comprehensive income | $ 242,808 | $ 258,584 | $ 197,474 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
OPERATING ACTIVITIES | |||
Net income | $ 230,994 | $ 245,493 | $ 195,423 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation and amortization | 38,046 | 37,126 | 36,599 |
Stock-based compensation | 16,725 | 21,891 | 38,516 |
Provision for doubtful accounts | (807) | (44) | 330 |
Deferred income taxes | (3,750) | 127 | 3,637 |
Other | 5,359 | (592) | 9,087 |
Changes in operating assets and liabilities: | |||
Accounts receivable | 14,905 | 56,696 | (60,957) |
Inventories | 101,284 | (236,166) | (24,928) |
Accounts payable | (19,916) | (4,117) | 47,662 |
Income taxes | (29,335) | 6,916 | 15,987 |
Accrued liabilities | (1,858) | (31,108) | 18,859 |
Other assets and liabilities | 4,902 | (12,637) | 3,647 |
Cash provided by operating activities | 356,549 | 83,585 | 283,862 |
INVESTING ACTIVITIES | |||
Property, plant and equipment expenditures | (27,366) | (18,375) | (10,551) |
Capitalized computer software | (10,018) | (10,022) | (26,322) |
Proceeds from sales of assets | 510 | 64 | 669 |
Other | (2,264) | (1,785) | (3,167) |
Cash used by investing activities | (39,138) | (30,118) | (39,371) |
FINANCING ACTIVITIES | |||
Borrowings under revolving credit facility | 288,000 | 163,000 | 0 |
Repayments under revolving credit facility | (288,000) | (163,000) | 0 |
Proceeds from issuance of senior notes | 0 | 0 | 400,000 |
Payment of deferred financing costs | 0 | (298) | (8,010) |
Repayments of term loans | (10,000) | 0 | (523,000) |
Repurchases of Common Stock | (30,111) | (62,494) | (75,462) |
Dividends paid | (108,574) | (103,661) | (95,081) |
Proceeds from issuance of Common Stock, net of shares withheld for taxes | 284 | (11,700) | (1,951) |
Other | (7,297) | 7,246 | (562) |
Cash used by financing activities | (155,698) | (170,907) | (304,066) |
Effect of foreign currency rate changes on cash and cash equivalents | (5,842) | (8,703) | (3,241) |
Net change in cash and cash equivalents | 155,871 | (126,143) | (62,816) |
Cash and cash equivalents - beginning of period | 59,179 | 185,322 | 248,138 |
Cash and cash equivalents - end of period | 215,050 | 59,179 | 185,322 |
Supplemental cash flow information: | |||
Interest paid, net of amounts capitalized | 36,405 | 31,955 | 27,074 |
Income taxes paid | 74,184 | 67,798 | 32,607 |
Change in accrual for property, plant and equipment | (3,747) | 2,522 | (336) |
Change in accrual for capitalized computer software | $ (981) | $ 2,958 | $ (2,669) |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
Beginning balance (in shares) at Jan. 02, 2021 | 57,255,000 | ||||
Beginning balance at Jan. 02, 2021 | $ 84,641 | $ 0 | $ 172,297 | $ 7,151 | $ (94,807) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 195,423 | 195,423 | |||
Stock-based compensation, net (in shares) | 504,000 | ||||
Stock-based compensation, net | 36,566 | 45,962 | (9,396) | ||
Other comprehensive income | 2,051 | 2,051 | |||
Dividends on Common Stock | (95,081) | (95,081) | |||
Repurchase of Common Stock (in shares) | (1,378,000) | ||||
Repurchases of Common Stock | (75,462) | $ (75,500) | (75,462) | ||
Ending balance (in shares) at Jan. 01, 2022 | 56,381,000 | ||||
Ending balance at Jan. 01, 2022 | 148,138 | $ 0 | 218,259 | 22,635 | (92,756) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 245,493 | 245,493 | |||
Stock-based compensation, net (in shares) | 631,000 | ||||
Stock-based compensation, net | 10,190 | 25,437 | (15,247) | ||
Other comprehensive income | 13,091 | 13,091 | |||
Dividends on Common Stock | (103,661) | (103,661) | |||
Repurchase of Common Stock (in shares) | (1,495,000) | ||||
Repurchases of Common Stock | $ (62,494) | $ (62,500) | (62,494) | ||
Ending balance (in shares) at Dec. 31, 2022 | 55,516,872 | 55,517,000 | |||
Ending balance at Dec. 31, 2022 | $ 250,757 | $ 0 | 243,696 | 86,726 | (79,665) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 230,994 | 230,994 | |||
Stock-based compensation, net (in shares) | 782,000 | ||||
Stock-based compensation, net | 17,033 | 29,612 | (12,579) | ||
Other comprehensive income | 11,814 | 11,814 | |||
Dividends on Common Stock | (108,574) | (108,574) | |||
Repurchase of Common Stock (in shares) | (579,000) | ||||
Repurchases of Common Stock | $ (30,111) | $ (30,100) | (111) | (30,000) | |
Ending balance (in shares) at Dec. 30, 2023 | 55,720,251 | 55,720,000 | |||
Ending balance at Dec. 30, 2023 | $ 371,913 | $ 0 | $ 273,197 | $ 166,567 | $ (67,851) |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends (in USD per share) | $ 1.94 | $ 1.86 | $ 1.66 |
BASIS OF PRESENTATION AND SUMMA
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 30, 2023 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Business Kontoor Brands, Inc. ("Kontoor," the "Company," "we," "us" or "our") is a global lifestyle apparel company headquartered in the United States ("U.S."). The Company designs, manufactures, procures, sells and licenses apparel, footwear and accessories, primarily under the brand names Wrangler ® and Lee ® . The Company's products are sold in the U.S. through mass merchants, specialty stores, mid-tier and traditional department stores, company-operated stores and online, including digital marketplaces. The Company's products are also sold internationally, primarily in the Europe, Asia-Pacific and Non-U.S. Americas regions, through department, specialty, company-operated, concession retail and independently-operated partnership stores and online, including digital marketplaces. Fiscal Year The Company operates and reports using a 52/53-week fiscal year ending on the Saturday closest to December 31 of each year. For presentation purposes herein, all references to periods ended December 2023, December 2022 and December 2021 correspond to the 52-week fiscal years ended December 30, 2023, December 31, 2022 and January 1, 2022, respectively. Macroeconomic Environment and Other Recent Developments Macroeconomic conditions, including inflation, elevated interest rates, recessionary concerns and fluctuating foreign currency exchange rates, as well as continuing global supply chain issues and uneven post-pandemic economic recovery in China, continue to adversely impact global economic conditions, as well as the Company's operations. Additionally, the conflicts in the Ukraine and Middle East are causing disruption in the surrounding areas and greater uncertainty in the global economy. The Company considered the impact of these developments on the assumptions and estimates used when preparing these annual financial statements including, but not limited to, our allowance for doubtful accounts, inventory valuations, liabilities for variable consideration, deferred tax valuation allowances, fair value measurements including asset impairment evaluations, the effectiveness of the Company’s hedging instruments and expected compliance with all applicable financial covenants in our Credit Agreement (as defined in Note 1 Basis of Presentation - Consolidated Financial Statements The consolidated financial statements and related disclosures are presented in accordance with generally accepted accounting principles in the U.S. ("GAAP"). The Company’s consolidated financial statements are referred to throughout this Annual Report on Form 10-K as “financial statements." Use of Estimates In preparing the financial statements in accordance with GAAP, management makes estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. Foreign Currency Translation and Transactions The financial statements of most foreign subsidiaries are measured using the foreign currency as their functional currency. Assets and liabilities denominated in a foreign currency are translated into U.S. dollars using exchange rates in effect at the balance sheet dates, and revenues and expenses are translated at average exchange rates during the period. Resulting translation gains and losses are reported in other comprehensive income (“OCI”). Certain transactions are denominated in a currency other than the functional currency of a particular subsidiary, and typically result in receivables or payables that are denominated in the foreign currency. Transaction gains or losses arise when exchange rate fluctuations either increase or decrease the functional currency cash flows from the originally recorded transactions. As discussed in Note 1 5 Cash and Cash Equivalents Cash and cash equivalents are demand deposits, receivables from third-party credit card processors and highly liquid investments that mature within three months of their purchase dates. Cash equivalents totaling $147.8 million and $22.3 million at December 2023 and 2022, respectively, consist of money market funds and short-term time deposits. Accounts Receivable, Net of Allowance for Doubtful Accounts Trade accounts receivable are recorded at invoiced amounts, less contractual allowances for trade terms and discounts. Royalty receivables are recorded at invoiced amounts based on the licensees’ sales of licensed products. The Company is exposed to credit losses primarily through trade accounts receivable from customers and licensees which are generally short-term in nature. The Company maintains an allowance for doubtful accounts that will result from the inability of customers to make required payments of outstanding balances. In estimating this allowance, accounts receivable are evaluated on a pooled basis at each reporting date and aggregated on the basis of similar risk characteristics, including current and forecasted industry trends and economic conditions, aging status of accounts, geographical location, and the financial strength and credit standing of customers, including payment and default history. Additionally, specific allowance amounts are established for customer balances that have a higher probability of default. Receivables are written off against the allowance when all collection efforts have been exhausted and the likelihood of collection is remote. Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined on the first-in, first-out method. Existence of physical inventory is verified through periodic physical inventory counts and ongoing cycle counts throughout the year. Property, Plant and Equipment Property, plant and equipment is initially recorded at cost. The Company capitalizes improvements to property, plant and equipment that substantially extend the useful life of an asset, and interest costs incurred during construction of major assets. Depreciation is computed using the straight-line method over each asset's estimated useful life, ranging from three Repair and maintenance costs are expensed as incurred. Capitalized Computer Software and Cloud Computing Arrangements Expenditures for major software purchases and software developed for internal use, including cloud computing arrangements with software licenses purchased from vendors, are capitalized and amortized on a straight-line basis over periods ranging from five Cloud computing arrangements, including any related implementation costs, that do not include a license are accounted for as service contracts and the fees associated with the hosting service are expensed as incurred. The current and long-term portion of these costs are included in the balance sheets within "Prepaid expenses and other current assets" and "Other assets," respectively. Intangible Assets Intangible assets include acquired trademarks and trade names, some of which are registered in multiple countries. Amortization of finite-lived trademarks and trade names is computed on a straight-line basis over a 16 year estimated useful life. Trademarks and trade names determined to have indefinite lives are not amortized. Depreciation and Amortization Expense Depreciation and amortization expense related to producing or otherwise obtaining finished goods inventories is reflected in the Company's statements of operations within "cost of goods sold" and all other depreciation and amortization expense is reflected within "selling, general and administrative expenses." Impairment of Long-lived Assets Property, Plant and Equipment, Operating Lease Assets and Finite-lived Intangible Assets — The Company’s policy is to review property, plant and equipment, right-of-use operating lease assets and amortizable intangible assets for possible impairment whenever events or changes in circumstances indicate that the carrying value of an asset or asset group may not be recoverable. If the forecasted undiscounted cash flows to be generated by an asset are not expected to recover the asset’s carrying value, the estimated fair value is calculated, and an impairment charge is recorded to the extent that an asset’s carrying value exceeds its estimated fair value. Goodwill and Indefinite-lived Intangible Assets — The Company’s policy is to evaluate goodwill and indefinite-lived intangible assets for possible impairment as of the beginning of the fourth quarter of each year, or whenever events or changes in circumstances indicate that the fair value of such assets may be below their carrying value. The Company may first assess qualitative factors as a basis for determining whether it is necessary to perform quantitative impairment testing. If the Company performs a qualitative analysis and determines that it is not more likely than not that the fair value of an asset or reporting unit is less than its carrying value, then no further testing is required. Otherwise, the assets must be quantitatively tested for possible impairment. Alternatively, the Company may elect to bypass a qualitative analysis and perform a quantitative analysis. If goodwill is quantitatively tested for possible impairment, the estimated fair value of a reporting unit is compared with its carrying value, including the goodwill assigned to that reporting unit. An impairment charge is recorded to the extent that the carrying value of the reporting unit exceeds its estimated fair value. An indefinite-lived intangible asset is quantitatively tested for possible impairment by comparing the estimated fair value of the asset with its carrying value. An impairment charge is recorded to the extent that the carrying value of the asset exceeds its estimated fair value. Leases and Rent Expense The Company enters into operating leases for retail stores, operational facilities, vehicles and equipment, with terms expiring at various dates through 2033. Leases for real estate typically have initial terms ranging from one one The Company determines whether an arrangement is a lease at inception and combines lease and non-lease components as a single component for all asset classes. For leases with a term of 12 months or less, the Company does not recognize a right-of-use asset and related lease liability. Most leases have fixed rentals, with many of the real estate leases requiring additional payments for real estate taxes and occupancy-related costs. Certain of the Company’s leases contain fixed, indexed, or market-based escalation clauses which impact future payments. Variable payment provisions, such as contingent rent based on percent of sales or excess mileage over specified levels, are recognized when the liability is probable. The Company's leases typically contain customary covenants and restrictions. Rent expense for leases is recorded on a straight-line basis over the lease term beginning on the lease commencement date, which is the date the underlying asset is made available to the Company, and incorporates the effects of any associated landlord incentives or scheduled rent fluctuations. Lease agreements may include optional renewals, terminations or purchases, which are considered in the Company’s assessments of lease terms when such options are reasonably certain to be exercised. For retail real estate leases, the Company does not typically include renewal options in the underlying lease term. For non-retail real estate leases, the Company includes the renewal options in the underlying lease term if renewal options are reasonably certain to be exercised. Renewals for all other leases are determined on a lease-by-lease basis. The Company measures right-of-use operating lease assets and related operating lease liabilities based on the present value of remaining lease payments, including in-substance fixed payments, the current payment amount when payments depend on an index or rate (e.g., inflation adjustments, market renewals) and the amount the Company believes is probable to be paid to the lessor under residual value guarantees, when applicable. As applicable borrowing rates are not typically implied within our lease arrangements, the Company discounts lease payments based on its estimated incremental borrowing rate at lease commencement, or modification, which is based on the Company’s estimated credit rating, the lease term at commencement or modification and the jurisdiction where the lease is being executed. Revenue Recognition The Company recognizes revenue when performance obligations under the terms of a contract with the customer are satisfied based on the transfer of control of promised goods or services. The transfer of control typically occurs at a point in time based on consideration of when the customer has i) an obligation to pay for, ii) physical possession of, iii) legal title to, iv) risks and rewards of ownership of and v) accepted the goods or services. Revenue recognition within the wholesale channels occurs either upon shipment or delivery of goods based on contractual terms with the customer. Revenue recognition in the direct-to-consumer channels typically occurs at the point of sale for Company-operated or concession retail stores and either upon shipment or delivery of goods for e-commerce transactions based on contractual terms with the customer. For finished products shipped directly to customers from our suppliers or other third parties, the Company’s promise to the customer is a performance obligation to provide the specified goods and the Company has discretion in establishing pricing. For each of these arrangements, the Company is the principal and revenue is recognized on a gross basis at the transaction price. Contractual arrangements with customers in our wholesale channels are typically on a purchase order basis with terms of less than one year. Payment terms with customers are typically between 30 and 60 days. The Company does not adjust the promised amount of consideration for the effects of a significant financing component as it is expected, at contract inception, that the period between the transfer of the promised good or service to the customer and the customer payment for the good or service will be one year or less. The amount of revenue recognized reflects the expected consideration to be received for providing the goods or services to the customer, net of estimates for variable consideration which includes allowances for trade terms, sales incentive programs, discounts, markdowns, chargebacks and product returns. Estimates of variable consideration are determined at contract inception and reassessed at each reporting date, at a minimum, to reflect any changes in facts and circumstances. The Company utilizes the expected value method in determining its estimates of variable consideration, based on evaluations of specific product and customer circumstances, historical and anticipated trends and current economic conditions. Estimates for variable consideration are recorded as "accrued liabilities" in the Company's balance sheets. Revenue from the sale of gift cards is deferred and recorded as a contract liability until the gift card is redeemed by the customer, factoring in breakage as appropriate, which considers whether the Company has a legal obligation to remit the value of the unredeemed gift card to any jurisdiction under unclaimed property regulations. The Company sponsors a customer loyalty program in certain regions which allows its direct-to-consumer customers to earn rewards that are redeemable for discounts on future purchases. Under the program, the Company estimates the standalone selling price of the loyalty rewards and allocates a portion of the consideration for the sale of products to the loyalty points earned. The deferred amount is recorded as a contract liability, and recognized as revenue when the points are redeemed or when the likelihood of redemption is remote. The Company has elected to treat all shipping and handling activities as fulfillment costs and recognize the costs as selling, general and administrative expenses at the time the related revenue is recognized. Shipping and handling costs billed to customers are included in net revenues. Sales taxes and value added taxes collected from customers and remitted directly to governmental authorities are excluded from the transaction price. The Company has licensing agreements for its symbolic intellectual property, most of which include minimum guarantees for sales-based royalties. Royalty income is recognized as earned over the respective license term based on the greater of minimum guarantees or the licensees’ sales of licensed products at rates specified in the licensing contracts. Royalty income related to the minimum guarantees is recognized using a measure of progress with variable amounts recognized only when the cumulative earned royalty exceeds the minimum guarantees and collection is probable. As of December 2023, the Company has contractual rights under its licensing agreements to receive $90.8 million of fixed consideration related to the future minimum guarantees through December 2029. The variable consideration is not disclosed as a remaining performance obligation as the licensing arrangements qualify for the sales-based royalty exemption. Royalty income was included within "net revenues" in the Company's statements of operations and was $37.1 million, $32.5 million and $26.6 million in 2023, 2022 and 2021, respectively. Disclosure is required for the aggregate transaction price allocated to performance obligations that are unsatisfied at the end of a reporting period, unless the optional practical expedients are applicable. The Company elected the practical expedients that do not require disclosure of the transaction price allocated to remaining performance obligations for (i) variable consideration related to sales-based royalty arrangements and (ii) contracts with an original expected duration of one year or less. The Company has applied the practical expedient to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that otherwise would have been recognized is one year or less. Cost of Goods Sold Cost of goods sold for company-manufactured goods includes all materials, labor and overhead costs incurred in the production process. Cost of goods sold for purchased finished goods includes the purchase costs and related overhead. In both cases, overhead includes all costs related to manufacturing or purchasing finished goods, including costs of planning, purchasing, quality control, depreciation, amortization, restructuring, freight, duties, royalties paid to third parties and shrinkage. Selling, General and Administrative Expenses Selling, general and administrative expenses include costs of product development, selling, advertising and marketing, direct-to-consumer operations, warehousing, distribution, shipping and handling, licensing, restructuring and administration. Advertising and marketing costs are expensed as incurred and totaled $133.0 million, $137.8 million and $142.0 million in 2023, 2022 and 2021, respectively. Advertising and marketing costs include traditional and digital media, as well as other expenses related to demand creation and internal payroll costs for advertising and marketing employees. Advertising and marketing costs also include cooperative advertising payments made to the Company's customers as reimbursement for their costs of advertising the Company’s products, and totaled $2.8 million, $4.3 million and $3.3 million in 2023, 2022 and 2021, respectively. Shipping and handling costs for delivery of products to customers totaled $93.5 million, $89.0 million and $84.4 million in 2023, 2022 and 2021, respectively. Derivative Financial Instruments Derivative financial instruments are measured at fair value in the Company's balance sheets. Unrealized gains and losses are recognized as assets and liabilities, respectively, and classified as current or noncurrent based on the derivatives’ maturity dates. The accounting for changes in the fair value of derivative instruments (i.e., gains and losses) depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. To qualify for hedge accounting treatment, all hedging relationships must be formally documented at the inception of the hedges and must be highly effective in offsetting changes in future cash flows of hedged transactions. Further, at the inception of a contract and on an ongoing basis, the Company assesses whether the hedging instruments are effective in offsetting the risk of the hedged transactions. Occasionally, a portion of a derivative instrument will be considered ineffective in hedging the originally identified exposure due to a decline in amount or a change in timing of the hedged exposure. In such cases, hedge accounting treatment is discontinued for the ineffective portion of that hedging instrument, and any change in fair value for the ineffective portion is recognized in net income. The Company does not use derivative instruments for trading or speculative purposes. Hedging cash flows are classified in the Company's statements of cash flows in the same category as the items being hedged. Hedging contracts are further described in Note 1 5 Cash Flow Hedges — The Company uses foreign currency exchange contracts primarily to hedge a portion of the exchange risk for its forecasted sales, purchases, intercompany service fees and royalties. The Company uses interest rate swap agreements to partially hedge the interest rate risk associated with the volatility of the applicable monthly interest rate benchmark in our debt agreement. Derivative Contracts Not Designated as Hedges — Any contracts that are not designated as hedges, primarily related to foreign currency exchange risk on certain accounts receivable and accounts payable, are recorded at fair value in the Company's balance sheets. Changes in the fair values of derivative contracts not designated as hedges are recognized directly in earnings. The counterparties to our derivative contracts are financial institutions with investment grade credit ratings, but this does not eliminate the Company's exposure to credit risk with these institutions. To manage its credit risk, the Company monitors the credit risks of its counterparties, limits its exposure in the aggregate and to any single counterparty, and adjusts its hedging positions as appropriate. The impact of the Company's credit risk and the credit risk of its counterparties, as well as the ability of each party to fulfill its obligations under the contracts, is considered in determining the fair value of the derivative contracts. Credit risk has not had a significant effect on the fair value of our derivative contracts. The counterparties to our derivative contracts are also lenders under our Credit Facilities (as defined in Not e 1 1 Self-insurance The Company is self-insured for a significant portion of its employee medical, workers’ compensation, property and general liability exposures. Liabilities for self-insured exposures are accrued at the present value of amounts expected to be paid based on historical claims experience and actuarial data for forecasted settlements of claims filed and for incurred but not yet reported claims. Accruals for self-insured exposures are included in current and noncurrent liabilities based on the expected periods of payment. Excess liability insurance has been purchased to limit the amount of self-insured risk on claims. Income Taxes Income taxes are provided on pre-tax income for financial reporting purposes. "Deferred income tax assets" and "deferred income tax liabilities," as presented in the Company's balance sheets, reflect the net future tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Net temporary differences and net operating losses are recorded utilizing tax rates currently enacted for the years in which the differences are expected to be settled or realized. We periodically assess the realizability of deferred tax assets and the adequacy of deferred tax liabilities, including the results of local, state, federal or foreign statutory tax audits and changes in estimates and judgments used. A valuation allowance is recognized if, based on the weight of available evidence, it is more likely than not (likelihood of more than 50%) that some portion, or all, of a deferred tax asset will not be realized. Accrued income taxes in the Company's balance sheets include unrecognized income tax benefits along with related interest and penalties, which are appropriately classified as current or noncurrent. All deferred tax assets and liabilities are classified as noncurrent in the Company's balance sheets. The provision for income taxes as presented in the Company's statements of income also includes estimated interest and penalties related to uncertain tax position s . Concentration of Risks The Company markets products to a broad customer base throughout the world. Products are sold at a range of price points through our wholesale and direct-to-consumer channels. The Company’s two largest customers, both U.S.-based retailers, accounted for 36% and 11% of 2023 net revenues, and the top ten customers accounted for 62% of 2023 net revenues. Sales are typically made on an unsecured basis under customary terms that vary by product, channel of distribution or geographic region. The Company continuously monitors the creditworthiness of its customers and has established internal policies regarding customer credit limits. The Company is not aware of any issues with respect to relationships with any of its top customers. Legal and Other Contingencies Management periodically assesses liabilities and contingencies in connection with legal proceedings and other claims that may arise from time to time. When it is probable that a loss has been or will be incurred, an estimate of the loss is recorded in the financial statements. Estimates of losses are adjusted when additional information becomes available or circumstances change. A contingent liability is disclosed when there is at least a reasonable possibility that a material loss may have been incurred. Management believes that the outcome of any outstanding or pending matters, individually and in the aggregate, will not have a material adverse effect on the financial statements. Earnings Per Share Basic earnings per share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share assumes conversion of potentially dilutive securities such as stock options, restricted stock and restricted stock units. Reclassifications Certain prior year amounts in the Company's disclosures have been reclassified to conform with the current year presentation. Out-of-Period Adjustments During 2023, management identified inaccuracies in processing certain transactions with U.S. Customs and Border Protection ("U.S. Customs") arising from the implementation of the Company's enterprise resource planning system, which resulted in an underpayment of duties owed to U.S. Customs for the 2021 to 2023 periods. Accordingly, the Company recorded $14.5 million in adjustments in 2023 within "cost of goods sold" to accrue for underpayment of duty expense related to prior years. The Company concluded that the out-of-period adjustments were not material to the annual or interim financial statements for the year ended December 2023 or to the previously reported annual or interim periods for the years ended December 2022 and December 2021. In October 2023, we provided notification of the discrepancies to U.S. Customs, and have tendered cash payments for transactions processed during the fourth quarter of 2023. In 2024, we will tender the remaining amounts accrued as of December 2023 and provide final documentation to U.S. Customs. Recently Adopted Accounting Standards In September 2022, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2022-04, "Disclosure of Supplier Finance Program Obligations," which requires entities that provide supplier finance programs in connection with the purchase of goods and services to disclose key terms of the programs, outstanding confirmed amounts as of period end, a description of where those obligations are presented in the balance sheets and an annual rollforward of obligations. This guidance was adopted by the Company during the first quarter of 2023, except for the requirement to include a rollforward of obligations which is effective beginning in 2024 with early adoption permitted. Refer to Note 10 Recently Issued Accounting Standards In November 2023, the FASB issued ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures," which requires enhanced disclosures about significant segment expenses. This guidance is effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. This guidance requires retrospective application to all prior periods presented in the financial statements. The Company is currently evaluating the impact that adoption of this guidance will have on its financial statements and disclosures. In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures," which requires disclosure of specific categories and greater disaggregation within the income tax rate reconciliation, and disclosure of disaggregated income taxes paid. This guidance is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact that adoption of this guidance will have on its financial statements and disclosures. |
REVENUES
REVENUES | 12 Months Ended |
Dec. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
REVENUES | REVENUES Disaggregation of Revenue The following tables present revenues disaggregated by channel and geography. Revenues from licensing arrangements are included within the U.S. or Non-U.S. Wholesale channels, based on the respective region where the licensee sells the product. Direct-to-Consumer revenues include sales from company-operated Wrangler ® and Lee ® branded full-price and outlet stores, online and international concession arrangements. Other includes sales and licensing of Rock & Republic ® , other company-owned brands and private label apparel. Other also included sales of third-party branded merchandise at company-owned outlet stores through the first quarter of 2021, after which they were discontinued. Year Ended December 2023 (In thousands) Wrangler Lee Other Total Channel revenues U.S. Wholesale $ 1,418,102 $ 440,690 $ 10,149 $ 1,868,941 Non-U.S. Wholesale 181,766 246,873 10 428,649 Direct-to-Consumer 154,262 154,957 663 309,882 Total $ 1,754,130 $ 842,520 $ 10,822 $ 2,607,472 Geographic revenues U.S. $ 1,549,051 $ 500,816 $ 10,812 $ 2,060,679 International 205,079 341,704 10 546,793 Total $ 1,754,130 $ 842,520 $ 10,822 $ 2,607,472 Year Ended December 2022 (In thousands) Wrangler Lee Other Total Channel revenues U.S. Wholesale $ 1,423,757 $ 460,799 $ 9,903 $ 1,894,459 Non-U.S. Wholesale 183,714 266,201 903 450,818 Direct-to-Consumer 138,334 147,366 467 286,167 Total $ 1,745,805 $ 874,366 $ 11,273 $ 2,631,444 Geographic revenues U.S. $ 1,542,593 $ 521,636 $ 10,370 $ 2,074,599 International 203,212 352,730 903 556,845 Total $ 1,745,805 $ 874,366 $ 11,273 $ 2,631,444 Year Ended December 2021 (In thousands) Wrangler Lee Other Total Channel revenues U.S. Wholesale $ 1,269,718 $ 420,720 $ 9,979 $ 1,700,417 Non-U.S. Wholesale 186,355 301,332 2,854 490,541 Direct-to-Consumer 119,158 165,000 21 284,179 Other — — 779 779 Total $ 1,575,231 $ 887,052 $ 13,633 $ 2,475,916 Geographic revenues U.S. $ 1,370,916 $ 487,214 $ 10,779 $ 1,868,909 International 204,315 399,838 2,854 607,007 Total $ 1,575,231 $ 887,052 $ 13,633 $ 2,475,916 Contract Balances Accounts receivable represent the Company's unconditional right to receive consideration from a customer and are recorded at net invoiced amounts, less estimated allowances. Contract assets are rights to consideration in exchange for goods or services that have been transferred to a customer when that right is conditional on something other than the passage of time. When the Company's right to consideration under a contract becomes unconditional, amounts are invoiced and contract assets are reclassified to "accounts receivable" within the Company's balance sheets. The Company's primary contract assets relate to sales-based royalty arrangements. Contract liabilities are recorded when a customer pays consideration, or the Company has a right to an amount of consideration that is unconditional, before the transfer of a good or service to the customer, and thus represent the Company's obligation to transfer the good or service to the customer. The following table presents information about contract balances recorded in the Company's balance sheets: (In thousands) December 2023 December 2022 Accounts receivable, net $ 217,673 $ 225,858 Contract assets (a) $ 10,929 $ 5,050 Contract liabilities (b) $ 1,713 $ 1,057 (a) Included within "prepaid expenses and other current assets" in the Company's balance sheets. (b) Included within "accrued liabilities" in the Company's balance sheets. For the year ended December 2023, revenue of $0.4 million was recognized that was included in contract liabilities as of December 2022. For the year ended December 2022, revenue of $1.5 million was recognized that was included in contract liabilities as of December 2021. Performance Obligations As of December 2023, there were no arrangements with any transaction price allocated to remaining performance obligations other than (i) contracts for which the Company has applied the practical expedients and (ii) fixed consideration related to future minimum guarantees. For the year ended December 2023, revenue recognized from performance obligations satisfied, or partially satisfied, in prior periods was not significant. |
BUSINESS SEGMENT INFORMATION
BUSINESS SEGMENT INFORMATION | 12 Months Ended |
Dec. 30, 2023 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENT INFORMATION | BUSINESS SEGMENT INFORMATION The Company has two reportable segments: • Wrangler — Wrangler ® branded denim, apparel, footwear and accessories. • Lee — Lee ® branded denim, apparel, footwear and accessories. The Company considers its chief executive officer to be its chief operating decision maker. The chief operating decision maker allocates resources and assesses performance based on the global brand operating results of Wrangler ® and Lee ® , which are the Company's operating and reportable segments. In addition, we report an "Other" category to reconcile segment revenues and segment profit to the Company's operating results, but the Other category does not meet the criteria to be considered a reportable segment. Other includes sales and licensing of Rock & Republic ® , other company-owned brands and private label apparel. Other also included sales of third-party branded merchandise at company-owned outlet stores through the first quarter of 2021, after which they were discontinued. Accounting policies utilized for internal management reporting at the individual segments are consistent with those included in Note 1 The Company has certain shared costs in each region that it allocates between the Wrangler ® and Lee ® segments. In addition, the Company allocates costs for certain centralized functions and programs to the Wrangler ® and Lee ® segments. These centralized functions and programs include, but are not limited to, information technology, human resources, supply chain, insurance and related benefit costs associated with those functions. Allocations are based on appropriate metrics such as usage or production of net revenues. Corporate and other expenses, including certain restructuring costs, and interest income and expense are not controlled by segment management and therefore are excluded from the measurement of segment profit. The following table presents financial information for the Company's reportable segments and income before income taxes: Year Ended December (In thousands) 2023 2022 2021 Segment revenues: Wrangler $ 1,754,130 $ 1,745,805 $ 1,575,231 Lee 842,520 874,366 887,052 Total reportable segment revenues 2,596,650 2,620,171 2,462,283 Other revenues 10,822 11,273 13,633 Total net revenues $ 2,607,472 $ 2,631,444 $ 2,475,916 Segment profit: Wrangler $ 307,521 $ 321,173 $ 294,153 Lee 98,148 121,056 128,305 Total reportable segment profit $ 405,669 $ 442,229 $ 422,458 Corporate and other expenses (96,075) (88,932) (140,960) Interest expense (40,408) (34,919) (38,900) Interest income 3,791 1,352 1,480 (Loss) profit related to other revenues (1,078) (594) 522 Income before income taxes $ 271,899 $ 319,136 $ 244,600 The Company reports inventories by segment as that information is used by the chief operating decision maker in assessing segment performance. Segment assets included in the "Other inventories" category represent balances related to other brands and corporate activities, and are provided for purposes of reconciliation. The Company does not report any other assets by segment. Total expenditures for long-lived assets are not disclosed as this information is not regularly provided to the chief operating decision maker at the segment level. The following table presents assets for the Company's reportable segments and a reconciliation to total asset balances: (In thousands) December 2023 December 2022 Segment assets: Wrangler $ 335,629 $ 402,826 Lee 160,139 187,929 Total reportable segment assets 495,768 590,755 Other inventories 4,585 6,081 Total inventories $ 500,353 $ 596,836 All other assets 1,145,086 985,425 Total assets $ 1,645,439 $ 1,582,261 The following table presents supplemental information of net revenues by geographic area based on the location of the customer: Year Ended December (In thousands) 2023 2022 2021 Revenues: U.S. $ 2,060,679 $ 2,074,599 $ 1,868,909 International 546,793 556,845 607,007 Total $ 2,607,472 $ 2,631,444 $ 2,475,916 Our largest customer accounted for 36% of the Company's total net revenues in both 2023 and 2022, and 34% of the Company's total net revenues in 2021. Another customer accounted for 11% of total net revenues in both 2023 and 2022, and 9% of total net revenues in 2021. Sales to these two customers are included in both the Wrangler ® and Lee ® reportable segments. The following table presents "property, plant and equipment, net" recorded in the Company's balance sheets by geographic area based on physical location: (In thousands) December 2023 December 2022 Property, plant and equipment, net: U.S. $ 66,803 $ 63,704 International 45,242 40,761 Total $ 112,045 $ 104,465 |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 12 Months Ended |
Dec. 30, 2023 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE | ACCOUNTS RECEIVABLE The following table presents components of "accounts receivable, net" recorded in the Company's balance sheets: (In thousands) December 2023 December 2022 Trade $ 200,911 $ 221,601 Royalty and other 23,977 14,175 Total accounts receivable 224,888 235,776 Less: allowance for doubtful accounts (7,215) (9,918) Accounts receivable, net $ 217,673 $ 225,858 Allowance for Doubtful Accounts The following table presents a rollforward of the allowance for doubtful accounts: (In thousands) Year Ended December Balance, December 2021 $ 11,705 Decrease in provision for expected credit losses (44) Accounts receivable balances written off (1,375) Other (1) (368) Balance, December 2022 $ 9,918 Decrease in provision for expected credit losses (807) Accounts receivable balances written off (2,388) Other (1) 492 Balance, December 2023 $ 7,215 (1) Other primarily includes the impact of foreign currency translation and recoveries of amounts previously written off, none of which were individually significant. Sale of Trade Accounts Receivable The Company is party to an agreement with a financial institution to sell selected trade accounts receivable on a nonrecourse basis. Under this agreement, up to $377.5 million of the Company’s trade accounts receivable may be sold to the financial institution and remain outstanding at any point in time. The Company removes the sold balances from "accounts receivable, net" in its balance sheet at the time of sale. The Company does not retain any interests in the sold trade accounts receivable but continues to service and collect outstanding trade accounts receivable on behalf of the financial institution. During 2023, 2022 and 2021, the Company sold total trade accounts receivable of $1.4 billion, $1.4 billion and $1.2 billion, respectively. As of December 2023 and December 2022, $197.7 million and $246.0 million, respectively, of the sold trade accounts receivable were no longer reflected in the Company's balance sheets but remained outstanding with the financial institution. The funding fees charged by the financial institution for this program are reflected in the Company's statements of operations within "other expense, net" and were $12.0 million, $5.6 million and $1.8 million in 2023 , 2022 and 2021, respectively. Net proceeds of this program are reflected as operating activities in the Company's statements of cash flows. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 30, 2023 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES The following table presents components of "inventories" recorded in the Company's balance sheets: (In thousands) December 2023 December 2022 Finished products $ 421,051 $ 509,554 Work-in-process 35,722 34,316 Raw materials 43,580 52,966 Total inventories $ 500,353 $ 596,836 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT The following table presents components of "property, plant and equipment, net" recorded in the Company's balance sheets: (In thousands) December 2023 December 2022 Land and improvements $ 10,795 $ 10,770 Buildings and improvements 184,173 177,275 Machinery and equipment 335,574 329,415 Property, plant and equipment, at cost 530,542 517,460 Less: accumulated depreciation and amortization (418,497) (412,995) Property, plant and equipment, net $ 112,045 $ 104,465 Depreciation expense was $20.2 million, $21.4 million and $22.4 million in 2023, 2022 and 2021, respectively. Refer to N ote 1 4 |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | INTANGIBLE ASSETS The following tables present components of "intangible assets, net" recorded in the Company's balance sheets: (In thousands) Amortization Period Amortization Method Cost Accumulated Amortization Net Carrying Amount December 2023 Finite-lived intangible assets: Trademarks 16 years Straight-line $ 58,132 $ 50,083 $ 8,049 Indefinite-lived intangible assets: Trademarks and trade names 4,448 Intangible assets, net $ 12,497 (In thousands) Amortization Period Amortization Method Cost Accumulated Amortization Net Carrying Amount December 2022 Finite-lived intangible assets: Trademarks 16 years Straight-line $ 58,132 $ 49,077 $ 9,055 Indefinite-lived intangible assets: Trademarks and trade names 4,306 Intangible assets, net $ 13,361 Amortization expense was $1.0 million in 2023, 2022 and 2021. Estimated amortization expense for the next five years is $1.0 million each year. Refer to Note 14 |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL | GOODWILL The following table presents changes in "goodwill" recorded in the Company's balance sheets, summarized by reportable segment: (In thousands) Wrangler Lee Total Balance, December 2021 $ 130,923 $ 81,290 $ 212,213 Currency translation (1,596) (990) (2,586) Balance, December 2022 129,327 80,300 209,627 Currency translation 145 90 235 Balance, December 2023 $ 129,472 $ 80,390 $ 209,862 Refer to N ote 1 4 |
OTHER ASSETS
OTHER ASSETS | 12 Months Ended |
Dec. 30, 2023 | |
Other Assets [Abstract] | |
OTHER ASSETS | OTHER ASSETS The following table presents components of "other assets" recorded in the Company's balance sheets: (In thousands) December 2023 December 2022 Investments held for deferred compensation plans (Note 13) $ 39,966 $ 37,740 Capitalized computer software, net of accumulated amortization of $43,108 in 2023 and $28,855 in 2022 74,481 82,419 Deposits 3,475 3,372 Partnership stores and shop-in-shop costs, net of accumulated amortization of $16,380 in 2023 and $15,833 in 2022 3,888 3,255 Derivative assets (Note 15) 1,438 12,739 Other 14,010 14,703 Total other assets $ 137,258 $ 154,228 |
Supply Chain Financing
Supply Chain Financing | 12 Months Ended |
Dec. 30, 2023 | |
Supply Chain Financing [Abstract] | |
Supply Chain Financing | SUPPLY CHAIN FINANCING The Company facilitates voluntary Supply Chain Finance ("SCF") programs with its financial institutions that allow certain suppliers the option to sell or assign their rights to receivables due from the Company, enabling the suppliers to receive payment from the financial institutions sooner than our negotiated payment terms. Participation in an SCF program is based on terms and conditions negotiated directly between the suppliers and the financial institutions. The Company agrees to commercial terms with suppliers independent of their participation in an SCF program, and thus their participation has no impact on our payment terms. The Company is not a party to the agreements between our suppliers and the financial institutions, and has no economic interest in our suppliers' decision to participate in an SCF program. Suppliers who participate in an SCF program have sole discretion to determine which invoices, if any, are to be sold to the financial institutions. All amounts payable to suppliers who participate in SCF programs are included within "accounts payable" in the Company's balance sheets, and the Company's associated payments are included in operating activities in the Company's statements of cash flows. At December 2023 and December 2022, accounts payable included total outstanding balances of $19.7 million and $24.7 million, respectively, due to suppliers that participate in the SCF programs. |
SHORT-TERM BORROWINGS AND LONG-
SHORT-TERM BORROWINGS AND LONG-TERM DEBT | 12 Months Ended |
Dec. 30, 2023 | |
Debt Disclosure [Abstract] | |
SHORT-TERM BORROWINGS AND LONG-TERM DEBT | SHORT-TERM BORROWINGS AND LONG-TERM DEBT Short-term Borrowings At December 2023 and December 2022, the Company had $24.1 million and $24.8 million, respectively, of international lines of credit with various banks, which are uncommitted and may be terminated at any time by either the Company or the banks. There were no outstanding balances under these arrangements at December 2023, and $7.1 million of outstanding balances at December 2022. In addition, short-term borrowings included other debt of $0.2 million at December 2022, with no balance remaining at December 2023. Long-term Debt The following table presents the components of "long-term debt" as recorded in the Company's balance sheets: (In thousands) December 2023 December 2022 Revolving Credit Facility $ — $ — Term Loan A 388,481 397,954 4.125% Notes, due 2029 395,440 394,665 Total long-term debt 783,921 792,619 Less: current portion (20,000) (10,000) Long-term debt, due beyond one year $ 763,921 $ 782,619 Credit Facilities The Company is party to a senior secured Credit Agreement, as amended and restated on November 18, 2021 (the "Credit Agreement"), which provides for (i) a five-year $400.0 million term loan A facility (“Term Loan A”) and (ii) a five-year $500.0 million revolving credit facility (the “Revolving Credit Facility”), collectively referred to as “Credit Facilities,” with the lenders and agents party thereto. Term Loan A requires quarterly repayments which commenced in March 2023, and the remaining principal is due at maturity. Term Loan A had an outstanding principal amount of $390.0 million and $400.0 million at December 2023 and December 2022, respectively, which is reported net of unamortized deferred financing costs. As of December 2023, interest expense on Term Loan A was being recorded at an effective annual interest rate of 4.4%, including the amortization of deferred financing costs and the impact of the Company’s interest rate swap. The Revolving Credit Facility may be used to borrow funds in both U.S. dollar and certain non-U.S. dollar currencies, and has a $75.0 million letter of credit sublimit. As of December 2023, the Company had no outstanding borrowings under the Revolving Credit Facility and $6.7 million of outstanding standby letters of credit issued on behalf of the Company, leaving $493.3 million available for borrowing against this facility. The interest rate per annum applicable to borrowings under the Credit Facilities is an interest rate benchmark elected by the Company based on the currency and term of the borrowing plus an applicable margin, as defined therein. The Credit Agreement contains certain affirmative and negative covenants customary for financings of this type that, among other things, limit the ability of the Company and its subsidiaries to incur additional indebtedness or liens, to dispose of assets, to make certain fundamental changes, to designate subsidiaries as unrestricted, to make certain investments, to prepay certain indebtedness and to pay dividends, or to make other distributions or redemptions/repurchases, in respect of the Company and its subsidiaries’ equity interests. In addition, the Credit Agreement contains financial covenants which require compliance with (i) a total leverage ratio not to exceed 4.50 to 1.00 as of the last day of any test period, with an allowance for up to two elections to increase the limit to 5.00 to 1.00 in connection with certain material acquisitions, and (ii) a consolidated interest coverage ratio as of the last day of any test period to be no less than 3.00 to 1.00. The Credit Agreement also contains events of default customary for financings of this type, including certain customary change of control events. As of December 2023, the Company was in compliance with all covenants under the Credit Agreement and expects to maintain compliance with the applicable covenants for at least one year from the issuance of these financial statements. Senior Notes On November 18, 2021, the Company entered into an indenture (the “Indenture”) by and among the Company and certain subsidiaries of the Company named as guarantors therein (the "Guarantors"), pursuant to which it issued $400.0 million of unsecured senior notes bearing interest at a fixed rate of 4.125% per annum (the “Notes”) through a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and outside the United States to non-U.S. persons pursuant to Regulation S under the Securities Act. Interest on the Notes is payable in cash in arrears on May 15 and November 15 of each year. The Notes had an outstanding principal amount of $400.0 million at both December 2023 and December 2022, which is reported net of unamortized deferred financing costs. As of December 2023, interest expense on the Notes was being recorded at an effective annual interest rate of 4.3%, including the amortization of deferred financing costs. The Notes are guaranteed on a senior unsecured basis by the Company’s existing and future domestic subsidiaries (other than certain excluded subsidiaries) that are borrowers under or guarantors of the Credit Facilities or certain other indebtedness. The Notes rank pari passu in right of payment with all existing and future senior indebtedness of the Company and the Guarantors and are effectively subordinated to all of the Company’s and the Guarantors’ existing and future secured indebtedness, to the extent of the value of the collateral securing such indebtedness. The Notes mature in November 2029. The Company may redeem all or a portion of the Notes beginning in November 2024 at the redemption prices set forth in the Indenture. Prior to November 2024, the Company may redeem all or a portion of the Notes at a redemption price equal to 100% of the principal amount of the Notes plus the “make-whole” premium as described in the Indenture together with accrued and unpaid interest, if any, up to, but excluding, the redemption date. The Company may also redeem up to 40% of the original aggregate principal amount of the Notes at any time prior to November 2024 using the net proceeds from certain equity offerings at a redemption price equal to 104.125% of the principal amount of the Notes together with accrued and unpaid interest, if any, up to, but excluding, the redemption date. In addition, in connection with any tender offer for the Notes, including a change of control offer, if holders of not less than 90% in aggregate principal amount of the Notes validly tender their Notes, the Company or a third party in lieu of the Company would have the right to redeem all Notes that remain outstanding following such tender at a redemption price equal to the price offered to each other holder of the Notes (excluding any early tender or incentive fee) in such tender offer (including a change of control offer) plus, to the extent not included in the tender offer payment (or payment pursuant to the change of control offer), accrued and unpaid interest to, but excluding, the date of redemption. The Indenture governing the Notes contains customary negative covenants for financings of this type that, among other things, limit the ability of the Company and its restricted subsidiaries to incur additional indebtedness or issue certain preferred shares, pay dividends, redeem stock or make other distributions, make certain investments, sell or transfer certain assets, create liens, consolidate, merge, sell or otherwise dispose of all or substantially all of the Company’s assets, enter into certain transactions with affiliates and designate subsidiaries as unrestricted subsidiaries. The Indenture does not contain any financial covenants. As of December 2023, the Company was in compliance with the covenants of the Indenture. The following table presents scheduled payments of long-term debt as of December 2023 for the next five years and thereafter: (In thousands) Future Principal Payments 2024 $ 20,000 2025 20,000 2026 350,000 2027 — 2028 — Thereafter 400,000 790,000 Less: unamortized deferred financing costs (6,079) Total long-term debt 783,921 Less: current portion (20,000) Long-term debt, due beyond one year $ 763,921 In connection with the Credit Agreement and Notes issuance, the Company capitalized $2.1 million and $6.2 million of debt issuance costs, respectively, which are being amortized into net interest expense over their respective terms. During 2021, the Company recorded interest expense of $6.6 million due to accelerated amortization of the original issue discount and debt issuance costs associated with refinancing and early repayments on our Credit Facilities. |
ACCRUED LIABILITIES AND OTHER L
ACCRUED LIABILITIES AND OTHER LIABILITIES | 12 Months Ended |
Dec. 30, 2023 | |
Payables and Accruals [Abstract] | |
ACCRUED LIABILITIES AND OTHER LIABILITIES | ACCRUED LIABILITIES AND OTHER LIABILITIES The following table presents components of "accrued liabilities" recorded as current liabilities in the Company's balance sheets: (In thousands) December 2023 December 2022 Customer discounts, allowances and incentives $ 42,159 $ 44,710 Compensation 37,501 35,483 Other taxes 21,580 14,628 Advertising 7,826 7,799 Derivative liabilities (Note 15) 4,009 1,218 Deferred compensation (Note 13) 6,284 5,392 Restructuring (Note 22) 827 10,695 Professional services 8,598 13,460 Income taxes payable 11,552 29,859 Customer deposits 5,833 6,715 Insurance 3,138 3,048 Contract liabilities (Note 2) 1,713 1,057 Other 20,394 22,925 Accrued liabilities $ 171,414 $ 196,989 The following table presents components of "other liabilities" recorded as noncurrent liabilities in the Company's balance sheets: (In thousands) December 2023 December 2022 Deferred compensation (Note 13) $ 42,855 $ 39,197 Derivative liabilities (Note 15) 1,112 1,089 Income taxes payable 13,949 15,359 Pension liabilities (Note 13) 3,491 4,334 Insurance 1,253 1,242 Other 11,944 8,810 Other liabilities $ 74,604 $ 70,031 |
RETIREMENT AND SAVINGS BENEFIT
RETIREMENT AND SAVINGS BENEFIT PLANS | 12 Months Ended |
Dec. 30, 2023 | |
Retirement Benefits [Abstract] | |
RETIREMENT AND SAVINGS BENEFIT PLANS | RETIREMENT AND SAVINGS BENEFIT PLANS Pension Plan The Company sponsors a defined benefit plan for certain international employees. The Company uses a December 31 measurement date for the pension plan. Net pension costs and obligations are developed from actuarial valuations. Inherent in these valuations are key assumptions, including discount rates, salary growth, long-term return on plan assets, retirement rates, mortality rates and other factors. The Company's selection of assumptions is based on historical trends and known economic and market conditions at the time of valuation, as well as independent studies of trends performed by actuaries. However, actual results may differ substantially from the estimates that were based on the critical assumptions. The following tables present key components of pension costs, amounts recorded in the balance sheets and related key assumptions: Year Ended December (In thousands) 2023 2022 2021 Amounts included in the statements of operations: Net pension costs $ 322 $ 811 $ 866 Curtailments $ — $ (2,581) $ — Actuarial assumptions used to determine pension expense: Discount rate in effect for determining service cost 0.91 % 0.64 % 0.64 % Rate of inflation 1.90 % 1.70 % 1.70 % Expected long-term return on plan assets 3.00 % 3.00 % 3.00 % Rate of compensation increase 3.10 % 2.90 % 2.90 % (In thousands) December 2023 December 2022 Amounts included in the balance sheets: Projected benefit obligations $ 14,348 $ 14,206 Fair value of plan assets 10,857 9,872 Funded status - recorded in other liabilities (Note 12) $ 3,491 $ 4,334 Accumulated other comprehensive gain, pretax - net deferred amounts 3,875 2,985 Actuarial assumptions used to determine pension obligations: Discount rate 3.18 % 0.91 % Rate of compensation increase 3.40 % 3.10 % Accumulated benefit obligations $ 11,808 $ 11,694 Net pension costs are reflected in the Company's statements of operations primarily within "selling, general and administrative expenses." The Company also recognized a $2.6 million pension curtailment gain within "other expense, net" in the Company's statements of operations for the year ended December 2022 attributable to employee restructuring in Europe as discussed in N ote 2 2 Not e 1 4 Other Retirement and Savings Plans The Company sponsors a nonqualified retirement savings plan for employees whose contributions to a 401(k) plan would be limited by provisions of the Internal Revenue Code. This plan allows participants to defer a portion of their compensation and to receive matching contributions for a portion of the deferred amounts. Participants earn a return on their deferred compensation based on their selection of a hypothetical portfolio of publicly traded mutual funds. Changes in the fair value of the participants’ hypothetical investments are recorded as an adjustment to deferred compensation liabilities. Deferred compensation, including accumulated earnings, is distributable in cash at participant-specified dates upon retirement, death, disability or termination of employment. At December 2023, the liability to the Company’s participants was $46.3 million, of which $6.3 million was current and recorded in "accrued liabilities" ( Not e 1 2 N ote 1 2 N ote 1 2 N ote 1 2 No te 1 2 The Company has purchased publicly traded mutual funds in the same amounts as the participant-directed hypothetical investments underlying the employee deferred compensation liabilities. These investment securities and earnings thereon are intended to provide a source of funds to meet the deferred compensation obligations, and serve as an economic hedge of the financial impact of changes in deferred compensation liabilities. They are held in an irrevocable trust but are subject to claims of creditors in the event of the Company's insolvency. Accordingly, at December 2023, the fair value of these investments was $46.3 million, of which $6.3 million was recorded in "prepaid expenses and other current assets" and $40.0 million was recorded in "other assets" ( Note 9 Note 9 The Company sponsors 401(k) plans as well as other foreign retirement and savings plans. The Company’s expense under these plans was $9.8 million in 2023, $9.3 million in 2022 and $8.6 million in 2021. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Certain assets and liabilities measured and reported at fair value are classified in a three-level hierarchy that prioritizes the inputs used in the valuation process. Categorization within the valuation hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The hierarchy is based on the observability and objectivity of the pricing inputs, as follows: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Significant directly observable data (other than Level 1 quoted prices) or significant indirectly observable data through corroboration with observable market data. Inputs would normally be (i) quoted prices in active markets for similar assets or liabilities, (ii) quoted prices in inactive markets for identical or similar assets or liabilities or (iii) information derived from or corroborated by observable market data. • Level 3 — Prices or valuation techniques that require significant unobservable data inputs. These inputs would normally be the Company's own data and judgments about assumptions that market participants would use in pricing the asset or liability. Recurring Fair Value Measurements The following tables present financial assets and financial liabilities that are measured and recorded in the Company's financial statements at fair value on a recurring basis: Fair Value Measurement Using (In thousands) Total Fair Value Level 1 Level 2 Level 3 December 2023 Financial assets: Cash equivalents: Money market funds $ 145,554 $ 145,554 $ — $ — Time deposits 2,283 2,283 — — Foreign currency exchange contracts 16,504 — 16,504 — Interest rate swap agreements 3,253 — 3,253 — Investment securities 46,250 46,250 — — Financial liabilities: Foreign currency exchange contracts 5,121 — 5,121 — Deferred compensation 49,139 — 49,139 — Fair Value Measurement Using (In thousands) Total Fair Value Level 1 Level 2 Level 3 December 2022 Financial assets: Cash equivalents: Money market funds $ 20,097 $ 20,097 $ — $ — Time deposits 2,194 2,194 — — Foreign currency exchange contracts 15,565 — 15,565 — Interest rate swap agreements 11,357 — 11,357 — Investment securities 43,131 43,131 — — Financial liabilities: Foreign currency exchange contracts 2,307 — 2,307 — Deferred compensation 44,589 — 44,589 — The Company's cash equivalents include money market funds and short-term time deposits that approximate fair value based on Level 1 measurements. The fair value of derivative financial instruments, which consist of foreign currency exchange contracts and interest rate swap agreements, is determined based on observable market inputs (Level 2), including spot and forward exchange rates for foreign currencies and observable interest rate yield curves for interest rate swap agreements. Investment securities are held in the Company's deferred compensation plans as an economic hedge of the related deferred compensation liabilities and are comprised of mutual funds that are valued based on quoted prices in active markets (Level 1). Liabilities related to the Company's deferred compensation plans are recorded at amounts due to participants, based on the fair value of the participants’ selection of hypothetical investments (Level 2). Additionally, at December 2023, the carrying value of the Company's long-term debt, including the current portion, was $783.9 million compared to a fair value of $747.1 million. At December 2022, the carrying value of the Company's long-term debt was $792.6 million compared to a fair value of $718.0 million. The fair value of long-term debt is a Level 2 estimate based on quoted market prices or values of comparable borrowings. All other financial assets and financial liabilities are recorded in the Company's financial statements at cost. These other financial assets and financial liabilities include cash held as demand deposits, accounts receivable, short-term borrowings, accounts payable, and accrued liabilities. At December 2023 and December 2022, their carrying values approximated fair value due to the short-term nature of these instruments. Nonrecurring Fair Value Measurements Certain non-financial assets, primarily property, plant and equipment, capitalized computer software, operating lease assets and goodwill and intangible assets, are not required to be measured at fair value on a recurring basis and are reported at carrying value. However, these assets are required to be assessed for impairment whenever events or circumstances indicate that the carrying value may not be recoverable, and at least annually for goodwill and indefinite-lived intangible assets. Finite-lived Intangible Assets Impairment Analysis During the years ended December 2023 and December 2022, no triggering events were identified that required an impairment assessment. During the three months ended December 2021, the Company determined that operating results of the Rock & Republic ® brand were not in line with the projections used in our 2019 impairment analysis of the Rock & Republic ® finite-lived trademark intangible asset. This was considered a triggering event that required management to perform a quantitative impairment analysis of the Rock & Republic ® finite-lived trademark intangible asset. Based on the analysis performed, management concluded that the trademark intangible asset did not require further testing as the undiscounted cash flows exceeded the carrying value. Retail Store Asset Impairment Analysis During 2023, the Company assessed retail store assets, including the related operating lease assets, for impairment. Based on the analysis performed, the Company recorded impairment charges of $1.1 million and $0.3 million related to store operating lease assets and store property, plant and equipment During the years ended December 2022 and December 2021, the Company assessed retail store assets, including the related operating lease assets, for impairment. No material charges were recorded in either period. Annual Goodwill and Indefinite-lived Intangible Assets Impairment Analysis Management performed its annual impairment testing of goodwill and indefinite-lived intangible assets as of the beginning of the fourth quarter for 2023, 2022 and 2021 and, based on results of testing, there were no impairment charges for the years ended December 2023, 2022 and 2021. For the year ended December 2023, management elected to perform a quantitative impairment assessment for goodwill to determine whether the estimated fair value of the reporting unit exceeded its carrying value. The fair value of each reporting unit was estimated based on a combination of two valuation methods: an income approach and a market approach. The income approach was based on the present value of projected discounted cash flows for each reporting unit. The discount rate is based on the reporting unit's weighted average cost of capital that takes market participant assumptions into consideration. The market approach was based on the guideline company method, which analyzed market multiples of revenue and earnings before interest, taxes, depreciation and amortization for a group of comparable companies, as well as the similar transaction method. Based on results of the quantitative impairment assessment performed, the fair value of goodwill exceeded the carrying value for all reporting units. For the years ended December 2022 and December 2021, for all reporting units, management elected to perform a qualitative impairment assessment to determine whether it is more likely than not that the goodwill in those reporting units were impaired. In performing qualitative impairment assessments, management considered relevant events and circumstances for each reporting unit, including (i) current year results, (ii) financial performance versus management’s annual and five-year strategic plans, (iii) changes in the reporting unit carrying value since prior year, (iv) industry and market conditions in which the reporting unit operates, (v) macroeconomic conditions, including discount rate changes and (vi) changes in products or services offered by the reporting unit. If applicable, performance in recent years was compared to forecasts included in prior valuations. Based on results of the qualitative assessments performed, further testing was not considered necessary. For the years ended December 2023, 2022 and 2021, management elected to perform a qualitative impairment assessment to determine whether it is more likely than not that the indefinite-lived trademark intangible asset was impaired. Based on results of the qualitative assessments performed, further testing was not considered necessary Refer to Part II, Item 7 - Critical Accounting Policies and Estimates |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | 12 Months Ended |
Dec. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES Summary of Derivative Financial Instruments The Company enters into derivative contracts with external counterparties to hedge certain foreign currency transactions. The notional amount of all outstanding foreign currency exchange contracts was $348.8 million at December 2023 and $322.3 million at December 2022, consisting primarily of contracts hedging exposures to the euro, Mexican peso, Canadian dollar, British pound, Polish zloty and Swedish krona. Foreign currency exchange contracts have maturities up to 20 months. During 2019, the Company entered into "floating to fixed" interest rate swap agreements to mitigate exposure to volatility in reference rates on the Company's future interest payments. The notional amount of the interest rate swap agreements was $300.0 million at December 2023 and December 2022. Because these interest rate swap agreements meet the criteria for hedge accounting, all related gains and losses are deferred within accumulated other comprehensive loss ("AOCL") and are being amortized through the swap maturity of April 18, 2024. The Company's outstanding derivative financial instruments met the criteria for hedge accounting at the inception of the hedging relationship. At each reporting period, the Company assesses whether the hedging relationships continue to be highly effective in offsetting changes in cash flows of hedged items. If the Company determines that a specific hedging relationship has ceased to be highly effective, it discontinues hedge accounting. All designated hedging relationships were determined to be highly effective as of December 2023. The following table presents the fair value of outstanding derivatives on an individual contract basis: Fair Value of Derivatives with Unrealized Gains Fair Value of Derivatives with Unrealized Losses (In thousands) December 2023 December 2022 December 2023 December 2022 Derivatives designated as hedging instruments: Foreign currency exchange contracts $ 16,490 $ 15,565 $ (5,098) $ (2,307) Interest rate swap agreements 3,253 11,357 — — Derivatives not designated as hedging instruments: Foreign currency exchange contracts 14 — (23) — Total derivatives $ 19,757 $ 26,922 $ (5,121) $ (2,307) The Company records and presents the fair value of all derivative assets and liabilities in the Company's balance sheets on a gross basis, even though certain derivative contracts are subject to master netting agreements. If the Company were to offset and record the asset and liability balances of its derivative contracts on a net basis in accordance with the terms of its master netting agreements, the amounts presented in the Company's balance sheets would be adjusted from the current gross presentation to the net amounts. The following table presents a reconciliation of gross to net amounts for derivative asset and liability balances: December 2023 December 2022 (In thousands) Derivative Asset Derivative Liability Derivative Asset Derivative Liability Gross amounts presented in the balance sheet $ 19,757 $ (5,121) $ 26,922 $ (2,307) Gross amounts not offset in the balance sheet (894) 894 (1,629) 1,629 Net amounts $ 18,863 $ (4,227) $ 25,293 $ (678) The following table presents the location of derivatives in the Company's balance sheets, with current or noncurrent classification based on maturity dates: (In thousands) December 2023 December 2022 Prepaid expenses and other current assets $ 18,319 $ 14,183 Accrued liabilities (4,009) (1,218) Other assets 1,438 12,739 Other liabilities (1,112) (1,089) Cash Flow Hedges The following tables present the pre-tax effects of cash flow hedges included in the Company's statements of operations and statements of comprehensive income: Gain (Loss) on Derivatives Recognized in AOCL (In thousands) Year Ended December Cash Flow Hedging Relationships 2023 2022 2021 Foreign currency exchange contracts $ 22,590 $ 23,480 $ 6,900 Interest rate swap agreements 1,829 17,148 4,238 Total $ 24,419 $ 40,628 $ 11,138 Gain (Loss) Reclassified from AOCL into Income (In thousands) Year Ended December Location of Gain (Loss) 2023 2022 2021 Net revenues $ (219) $ (1,093) $ 204 Cost of goods sold 23,588 13,531 (2,271) Other expense, net 527 245 (749) Interest expense 9,933 (261) (6,019) Total $ 33,829 $ 12,422 $ (8,835) Derivative Contracts Not Designated as Hedge s The following table presents a summary of the gain (loss) for derivative contracts not designated as hedges included in the Company's statements of operations: Gain (Loss) on Derivatives Recognized in Income (In thousands) Year Ended December Derivatives Not Designated as Hedges Location of Gain (Loss) on Derivatives Recognized in Income 2023 2022 2021 Foreign currency exchange contracts Net revenues $ — $ — $ (104) Cost of goods sold (226) 91 7 Other expense, net — — 385 Total $ (226) $ 91 $ 288 Other Derivative Information There were no significant amounts recognized in earnings for the ineffective portion of any hedging relationships during 2023, 2022 or 2021. At December 2023, AOCL included $18.7 million of pre-tax net deferred gains for foreign currency exchange contracts and interest rate swap agreements that are expected to be reclassified to earnings during the next 12 months. The amounts ultimately reclassified to earnings will depend on rates in effect when outstanding derivative contracts are settled. |
CAPITAL AND ACCUMULATED OTHER C
CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE LOSS | 12 Months Ended |
Dec. 30, 2023 | |
Equity [Abstract] | |
CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE LOSS | CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE LOSS Common Stock On August 5, 2021, the Company's Board of Directors approved a share repurchase program (the "2021 Repurchase Program") which authorized the repurchase of up to $200.0 million of the Company's outstanding Common Stock through open market or privately negotiated transactions. On December 11, 2023, the Company announced that its Board of Directors approved a new share repurchase program ("the 2023 Repurchase Program") which authorized the repurchase of up to $300.0 million of the Company's outstanding Common Stock through open market or privately negotiated transactions. The 2023 Repurchase Program replaced all remaining shares under the 2021 Repurchase Program and does not have an expiration date but may be suspended, modified or terminated at any time without prior notice. The timing and amount of repurchases are determined by the Company's management based on its evaluation of market conditions, continued compliance with its debt covenants and other factors. All shares reacquired in connection with the Company's repurchase programs are treated as authorized and unissued shares upon repurchase. During the years ended December 2023, December 2022 and December 2021, the Company repurchased 0.6 million, 1.5 million and 1.4 million shares of Common Stock, respectively, for $30.1 million, $62.5 million and $75.5 million, respectively, including commissions, under the 2021 Repurchase Program. All of the $300.0 million authorized for repurchase under the 2023 Repurchase Program remained available for repurchase as of December 2023. Accumulated Other Comprehensive Loss The Company's comprehensive income consists of net income and specified components of OCI, which relate to changes in assets and liabilities that are not included in net income but are instead deferred and accumulated within a separate component of equity in the Company's balance sheets. The Company's comprehensive income is presented in the Company's statements of comprehensive income. The following table presents deferred components of AOCL in equity, net of related taxes: (In thousands) December 2023 December 2022 December 2021 Foreign currency translation $ (91,057) $ (107,462) $ (93,125) Defined benefit pension plans 2,913 2,243 (2,177) Derivative financial instruments 20,293 25,554 2,546 Accumulated other comprehensive loss $ (67,851) $ (79,665) $ (92,756) The following table presents changes in AOCL and related tax impact: (In thousands) Foreign Currency Translation Defined Benefit Pension Plans Derivative Financial Instruments Total Balance, December 2020 $ (80,178) $ (1,889) $ (12,740) $ (94,807) Other comprehensive income (loss) due to gains (losses) arising before reclassifications (12,947) (399) 11,138 (2,208) Reclassifications to net income of previously deferred (gains) losses — 15 8,835 8,850 Net other comprehensive income (loss) (12,947) (384) 19,973 6,642 Income taxes — 96 (4,687) (4,591) Balance, December 2021 $ (93,125) $ (2,177) $ 2,546 $ (92,756) Other comprehensive income (loss) due to gains (losses) arising before reclassifications (14,337) 8,438 40,628 34,729 Reclassifications to net income of previously deferred (gains) losses — (2,549) (12,422) (14,971) Net other comprehensive income (loss) (14,337) 5,889 28,206 19,758 Income taxes — (1,469) (5,198) (6,667) Balance, December 2022 $ (107,462) $ 2,243 $ 25,554 $ (79,665) Other comprehensive income (loss) due to gains (losses) arising before reclassifications 16,405 1,077 24,419 41,901 Reclassifications to net income of previously deferred (gains) losses — (187) (33,829) (34,016) Net other comprehensive income (loss) 16,405 890 (9,410) 7,885 Income taxes — (220) 4,149 3,929 Balance, December 2023 $ (91,057) $ 2,913 $ 20,293 $ (67,851) The following table presents reclassifications out of AOCL: (In thousands) Year Ended December Details About Accumulated Other Comprehensive Loss Reclassifications Affected Line Item in the Financial Statements 2023 2022 2021 Defined benefit pension plans: Net change in deferred losses during the period Selling, general and administrative expenses $ 187 $ (32) $ (15) Pension curtailment gains Other expense, net $ — $ 2,581 $ — Total before tax 187 2,549 (15) Income taxes Income taxes (47) (637) 3 Net of tax 140 1,912 (12) Gains (losses) on derivative financial instruments: Foreign currency exchange contracts Net revenues $ (219) $ (1,093) $ 204 Foreign currency exchange contracts Cost of goods sold 23,588 13,531 (2,271) Foreign currency exchange contracts Other expense, net 527 245 (749) Interest rate swap agreements Interest expense 9,933 (261) (6,019) Total before tax 33,829 12,422 (8,835) Income taxes Income taxes (3,541) (924) 2,724 Net of tax 30,288 11,498 (6,111) Total reclassifications for the period, net of tax $ 30,428 $ 13,410 $ (6,123) |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Description of Plans Pursuant to the Kontoor Brands, Inc. 2019 Stock Compensation Plan (the "2019 Plan"), the Company is authorized to grant equity-based awards to officers, key employees and nonemployee members of the Board of Directors in the form of options, time-based restricted stock units (“RSUs”), performance-based restricted stock units ("PRSUs") and restricted stock awards ("RSAs"). The 2019 Plan also provided for the issuance of replacement grants related to the conversion of VF Corporation ("VF") awards for employees that transferred from VF to the Company (defined below as “Converted Awards”). A maximum of 7.5 million shares of Common Stock, plus shares subject to Converted Awards, may be issued under the 2019 Plan. As of December 2023, 3.5 million shares remained available for future grants. Shares distributed under the 2019 Plan are issued from Kontoor's authorized but unissued Common Stock. The Company has stock repurchase programs, as discussed in N ote 1 6 Substantially all of the Company’s outstanding awards are classified as equity awards, which are accounted for within "stockholders’ equity" in the Company's balance sheets. Compensation cost for all awards expected to vest is recognized over the shorter of the requisite service period or the vesting period, including accelerated recognition for retirement-eligible employees. Awards that do not vest are forfeited. Conversion at Separation We completed a spin-off transaction from VF on May 22, 2019 (the "Separation") and began to trade as a standalone public company on May 23, 2019. Prior to the Separation, certain Company employees participated in the VF amended and restated 1996 Stock Compensation Plan (the "VF Plan"). In accordance with the terms of the Separation, share-based awards granted to Company employees under the VF Plan ("VF Awards") were converted at the time of Separation to options, RSUs, PRSUs and RSAs totaling approximately 2.4 million shares of Kontoor Common Stock (the "Converted Awards"). Certain stock option and PRSU awards were retained by VF and settled in accordance with their original terms under the VF Plan. Stock-based Compensation Expense For the years ended December 2023, December 2022 and December 2021, stock-based compensation includes expense related to grants under the 2019 Plan including the Converted Awards. For the year ended December 2021, stock-based compensation also includes expense related to grants remaining under the VF Plan. The following table presents total stock-based compensation expense and the associated income tax benefits recognized in the statements of operations for all awards: Year Ended December (In thousands) 2023 2022 2021 Stock-based compensation expense $ 16,725 $ 21,891 $ 38,516 Income tax benefits 1,960 2,571 5,201 There were no material amounts of stock-based compensation costs included in inventory at December 2023, December 2022 and December 2021. At December 2023, there was $16.6 million of total unrecognized compensation cost related to all stock-based compensation arrangements that will be recognized over a weighted average period of approximately 1.3 years. During 2023, 222,460 shares were withheld to settle employee tax withholding related to vesting of awards. Restricted Stock Units Kontoor grants RSUs to certain key employees and nonemployee members of the Board of Directors. Each employee RSU entitles the holder to one share of Kontoor Common Stock and typically vests over a three-year period. Each RSU granted to a nonemployee member of the Board of Directors vests upon grant and will be settled in one share of Kontoor Common Stock one year from the date of grant. Kontoor also grants PRSUs that enable employees to receive shares of Kontoor Common Stock. Each PRSU has a potential final payout ranging from zero to two shares of Kontoor Common Stock. The number of shares earned by participants, if any, is based on achievement of performance goals ranging from one For PRSUs, the actual number of shares earned may also be adjusted upward or downward by 25% of the target award based on how Kontoor’s total shareholder return (“TSR”) over a three-year period compares to the TSR for companies included in a Company-selected peer group for the 2023 and 2022 grants, and the Russell 3000 Index for the 2021 grants. The grant date fair value of the TSR-based adjustment was $6.59, $4.03 and $5.73 per share for 2023, 2022 and 2021, respectively, which was determined using a Monte Carlo simulation technique that incorporates option-pricing model inputs. Dividend equivalents on the RSUs and PRSUs accumulate during the vesting period, are payable in additional shares of Kontoor Common Stock when the RSUs and PRSUs vest and are subject to the same risk of forfeiture as the RSUs and PRSUs. The grant date fair value of RSUs and PRSUs is equal to the per share fair market value of the underlying Kontoor Common Stock on each grant date. The following table presents PRSU and RSU activity from December 2022 to December 2023: Performance-based Nonperformance-based Number Outstanding Weighted Average Number Outstanding Weighted Average Outstanding at December 2022 799,351 $ 43.00 518,466 $ 38.21 Granted (1) 338,519 47.50 289,186 48.45 Issued as Common Stock (337,084) 45.60 (275,857) 34.49 Forfeited/canceled (22,694) 43.80 (18,460) 44.66 Outstanding at December 2023 778,092 $ 43.80 513,335 $ 45.75 Vested at December 2023 257,200 $ 46.00 20,838 $ — (1) Granted activity includes new awards granted during the year and dividend equivalents for both PRSUs and RSUs, as well as changes due to performance and market condition achievement for PRSUs. During 2020, the Company modified certain PRSU awards as they were not probable of achieving minimum thresholds. The total value of the modified awards was $8.8 million, of which $1.2 million and $4.1 million was recorded as compensation expense during 2022 and 2021, respectively, related to units that vested. The weighted average fair value of PRSUs granted during the years ended December 2023 and December 2022 was $47.50 and $40.79 per share, respectively, which was equal to the fair market value of the underlying Kontoor Common Stock on each grant date. The weighted average fair value of RSUs granted during the years ended December 2023 and December 2022 was $48.45 and $39.92 per share, respectively, which was equal to the fair market value of the underlying Kontoor Common Stock on each grant date. At December 2023, the fair value of PRSUs and RSUs outstanding was $48.6 million and $32.0 million, respectively. Restricted Stock Awards Prior to the Separation, VF granted RSAs of VF Common Stock to certain members of management with vesting periods of up to five years from the grant date. These awards were converted to Kontoor RSAs at the Separation. They generally had the same terms and conditions as the original awards and were amortized ratably over the remaining vesting periods. The fair value of RSAs that vested during the year ended December 2022 was $0.1 million, and all RSAs were vested at December 2022. No new RSAs have been granted by the Company subsequent to the Separation. Stock Options Prior to the Separation, VF granted stock options to employees that transferred from VF to the Company with the Separation. All employee stock options were included in the Converted Awards as discussed above except for retirement eligible employees, whose options remained with VF. The adjusted exercise price and outstanding quantities of the Converted Awards are included in the table below and no new stock options have been granted by the Company subsequent to the Separation. Employee stock options vested in equal annual installments over three years, and compensation cost was recognized ratably over the shorter of the requisite service period or the vesting period, including accelerated recognition for retirement-eligible employees. All options have ten-year terms. The following table presents stock option activity for the year ended December 2023: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at December 2022 1,212,908 $ 26.70 3.7 $ 16,121 Exercised (391,687) 26.78 Outstanding at December 2023 821,221 $ 26.66 2.8 $ 29,368 Exercisable at December 2023 821,221 $ 26.66 2.8 $ 29,368 All stock options were vested as of December 2022, and the total fair value of stock options that vested during 2022 was not significant. The total intrinsic value of stock options exercised during 2023 and 2022 was $9.2 million and $1.0 million, respectively. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The following table presents income before income taxes used to calculate the provision for income taxes: Year Ended December (In thousands) 2023 2022 2021 Domestic $ 128,026 $ 153,936 $ 118,142 Foreign 143,873 165,200 126,458 Income before income taxes $ 271,899 $ 319,136 $ 244,600 The following table presents components of the provision for income taxes: Year Ended December (In thousands) 2023 2022 2021 Current: Federal $ 26,290 $ 53,990 $ 24,514 Foreign 16,950 12,397 15,877 State 1,415 7,129 5,149 Total current income taxes 44,655 73,516 45,540 Deferred: Federal and state 6,848 (9,828) 2,951 Foreign (10,598) 9,955 686 Total deferred income taxes (3,750) 127 3,637 Total provision for income taxes $ 40,905 $ 73,643 $ 49,177 The following table presents a reconciliation of the differences between income taxes computed by applying the statutory federal income tax rate and "income taxes" recorded in the Company's statements of operations: Year Ended December (In thousands) 2023 2022 2021 Tax at federal statutory rate $ 57,099 $ 67,019 $ 51,366 State income tax, net of federal tax benefit 2,614 4,542 5,167 Foreign rate differences (20,354) (9,849) (13,698) Employee compensation 1,216 2,121 940 Change in valuation allowance (5,089) 4,881 2,010 Global intangible low-tax income ("GILTI") 5,518 3,586 2,852 Other (99) 1,343 540 Income taxes $ 40,905 $ 73,643 $ 49,177 Foreign rate differences include tax benefits of $5.4 million, $10.3 million and $5.5 million in 2023, 2022 and 2021, respectively, from statutorily exempt foreign income. As of December 2023, the Company does not have any active tax holidays from income taxes. During the year ended December 2023, the Company was granted local income tax credits in a foreign jurisdiction totaling $65.5 million that will expire in 2031. A full valuation allowance was recorded against these tax credits in the Company's financial statements and has been presented net in the table above. The following table presents the components of "deferred income tax assets" and "deferred income tax liabilities" recorded in the Company's balance sheets: (In thousands) December 2023 December 2022 Deferred income tax assets: Inventories $ 11,592 $ 15,448 Deferred compensation 10,290 10,454 Other employee benefits 7,989 6,903 Stock-based compensation 4,139 5,286 Other accrued expenses 16,741 12,887 Intangible assets 29,232 31,589 Leases 12,055 11,161 Operating loss carryforwards 30,871 25,817 Tax credit carryforwards 69,221 2,645 Gross deferred income tax assets 192,130 122,190 Less: valuation allowance (86,213) (25,799) Net deferred income tax assets 105,917 96,391 Deferred income tax liabilities: Leases 11,595 10,373 Depreciation 20,929 22,152 Taxes on unremitted earnings 3,923 3,503 Deferred income tax liabilities 36,447 36,028 Total net deferred income tax assets $ 69,470 $ 60,363 Amounts included in the balance sheets: Deferred income tax assets $ 75,081 $ 67,282 Deferred income tax liabilities (5,611) (6,919) $ 69,470 $ 60,363 At the end of 2023, the Company is asserting indefinite reinvestment on foreign earnings totaling $92.2 million. The Company has determined the unrecorded deferred tax liability associated with the $92.2 million basis difference is approximately $0.7 million, primarily related to withholding taxes. The Company has $65.5 million of local income tax credit carryforwards that will expire in 2031, $22.8 million of potential tax benefits for foreign operating loss carryforwards, $19.6 million of which will expire between 2024 and 2033, and foreign tax credit carryforwards of $3.5 million that will expire between 2030 and 2033. In addition, there are $8.2 million of potential tax benefits for state operating loss and credit carryforwards, $6.7 million of which will expire between 2024 and 2043. A valuation allowance has been provided where it is more likely than not that deferred tax assets related to operating loss and tax credit carryforwards will not be realized. Valuation allowances totaled $65.5 million for tax credit carryforwards, $11.9 million for foreign operating loss carryforwards, $6.1 million for state operating loss and credit carryforwards, and $2.7 million for other foreign deferred income tax assets. During 2023, the Company recorded a $65.5 million increase in valuation allowances related to tax credits granted in the current year. In addition, the Company recorded a tax benefit of $6.8 million due to a decrease in valuation allowances related to foreign operating losses as a result of committed tax planning actions, partially offset with a $2.1 million increase in valuation allowances related to current year foreign operating losses and other deferred income tax assets, inclusive of foreign currency effects. The Company also recorded a tax benefit due to a $0.4 million decrease in valuation allowances related to state operating loss and credit carryforwards as well as other state deferred income tax assets. The following table presents a reconciliation of the change in the accrual for unrecognized income tax benefits: (In thousands) Unrecognized Income Tax Benefits Accrued Interest and Penalties Unrecognized Income Tax Benefits Balance, December 2020 $ 11,893 $ 4,864 $ 16,757 Additions for current year tax positions 154 — 154 Additions for prior year tax positions 18 525 543 Reductions for prior year tax positions (348) (340) (688) Balance, December 2021 11,717 5,049 16,766 Additions for current year tax positions 169 — 169 Additions for prior year tax positions 853 857 1,710 Reductions for prior year tax positions — (30) (30) Reductions due to statute expirations (137) (58) (195) Balance, December 2022 12,602 5,818 18,420 Additions for current year tax positions 248 — 248 Additions for prior year tax positions 79 931 1,010 Reductions for prior year tax positions (345) (140) (485) Reductions due to statute expirations (2,249) (296) (2,545) Balance, December 2023 $ 10,335 $ 6,313 $ 16,648 (In thousands) December 2023 December 2022 Amounts included in the balance sheets: Unrecognized income tax benefits, including interest and penalties $ 16,648 $ 18,420 Less: deferred tax benefits (3,035) (3,445) Total unrecognized tax benefits $ 13,613 $ 14,975 The unrecognized tax benefits of $13.6 million at the end of 2023, if recognized, would reduce the annual effective tax rate. The Company files a consolidated U.S. federal income tax return, as well as separate and combined income tax returns in numerous state and international jurisdictions. In the U.S., the Company’s 2020 through 2022 tax years remain open and are subject to examination by the Internal Revenue Service. In addition, the Company is currently subject to examination by various state and international tax authorities. Management regularly assesses the potential outcomes of both ongoing and future examinations for the current and prior years and has concluded that the Company’s provision for income taxes is adequate. The outcome of any one |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 30, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The calculations of basic and diluted earnings per share ("EPS") are based on net income divided by the basic weighted average number of common shares and diluted weighted average number of common shares outstanding, respectively. The following table presents the calculations of basic and diluted EPS: Year Ended December (In thousands, except per share amounts) 2023 2022 2021 Net income $ 230,994 $ 245,493 $ 195,423 Basic weighted average shares outstanding 55,961 55,744 57,394 Dilutive effect of stock-based awards 970 1,218 1,692 Diluted weighted average shares outstanding 56,931 56,962 59,086 Earnings per share: Basic earnings per share $ 4.13 $ 4.40 $ 3.40 Diluted earnings per share $ 4.06 $ 4.31 $ 3.31 For the years ended December 2023, December 2022 and December 2021, an immaterial number of shares were excluded from the dilutive earnings per share calculations because the effect of their inclusion would have been anti-dilutive. For the years ended December 2023, December 2022 and December 2021, a total of 0.6 million, 0.3 million and 0.2 million shares of PRSUs, respectively, were excluded from the calculations of diluted earnings per share as the units were not considered to be contingent outstanding shares. |
LEASES
LEASES | 12 Months Ended |
Dec. 30, 2023 | |
Leases [Abstract] | |
LEASES | LEASES The following table presents lease-related assets and liabilities recorded in the Company's balance sheets: (In thousands) December 2023 December 2022 Assets Operating lease assets, noncurrent $ 54,812 $ 51,029 Total lease assets $ 54,812 $ 51,029 Liabilities Operating lease liabilities, current $ 21,003 $ 19,898 Operating lease liabilities, noncurrent 36,753 31,506 Total lease liabilities $ 57,756 $ 51,404 Weighted-average remaining lease term (in years) Operating leases 4.19 3.99 Weighted-average discount rate Operating leases 5.67 % 4.39 % Lease costs The following table presents certain information related to lease costs for operating leases: Year Ended December (In thousands) 2023 2022 2021 Operating lease costs $ 31,543 $ 26,634 $ 30,394 Short-term lease costs (excluding leases of one month or less) 603 279 272 Variable lease costs 4,070 3,145 3,505 Total lease costs $ 36,216 $ 30,058 $ 34,171 Other information The following table presents supplemental cash flow and non-cash information related to operating leases: Year Ended December (In thousands) 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities - operating cash flows $ 31,457 $ 29,977 $ 37,474 Right-of-use operating lease assets obtained in exchange for new operating leases - non-cash activity $ 14,964 $ 17,684 $ 4,323 The following table presents future maturities of operating lease liabilities as of December 2023: (In thousands) Lease Obligations 2024 $ 23,353 2025 15,923 2026 8,372 2027 6,334 2028 3,556 Thereafter 7,010 Total future minimum lease payments 64,548 Less: amounts related to imputed interest (6,792) Present value of future minimum lease payments 57,756 Less: operating lease liabilities, current (21,003) Operating lease liabilities, noncurrent $ 36,753 As of December 2023, the Company had not entered into any operating lease arrangements that had not yet commenced. The Company continuously monitors lease contracts and may negotiate amendments that include extensions or modifications to existing leases. Refer to Note 1 |
COMMITMENTS
COMMITMENTS | 12 Months Ended |
Dec. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS | COMMITMENTS The Company is obligated under noncancelable operating leases. Refer to Note 20 The Company has entered into licensing agreements that provide the Company rights to market products under trademarks owned by other parties. Royalties under these agreements are recognized within "cost of goods sold" in the statements of operations. Certain of these agreements contain minimum royalty and minimum advertising requirements. Future minimum royalty payments, including any required advertising payments, are $1.0 million each year for 2024 through 2028. There are currently no contractual payments due beyond 2028. In the ordinary course of business, the Company has entered into purchase commitments for raw materials, contract production and finished products. These agreements typically range from one The Company has entered into commitments for (i) service and maintenance agreements related to management information systems, (ii) capital spending and (iii) advertising. Future payments under these agreements are $26.0 million, $7.9 million, $1.8 million, $0.8 million and $0.1 million for 2024 through 2028, respectively, and $0.1 million thereafter. Surety bonds, customs bonds, standby letters of credit and international bank guarantees, all of which represent contingent guarantees of performance under self-insurance and other programs, totaled $29.9 million as of December 2023. These commitments would only be drawn upon if the Company were to fail to meet related claims or other obligations. |
RESTRUCTURING
RESTRUCTURING | 12 Months Ended |
Dec. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING | RESTRUCTURING The Company generally incurs restructuring charges related to cost optimization of business activities, primarily related to severance and employee-related benefits. In 2023, the Company took actions to drive efficiencies in our operations, which included reducing our global workforce and streamlining and transferring select production within our internal manufacturing network. In 2022, restructuring costs related to the globalization of the Company's operating model and relocation of the European headquarters to Geneva, Switzerland. In 2021, restructuring costs primarily related to the decision to exit certain company-owned outlet stores and the transition of our India business to a licensing model. We do not expect material charges in future periods related to the initiatives discussed above. Of the $11.5 million of restructuring charges recognized during the year ended December 2023, $5.7 million were reflected within "selling, general and administrative expenses" and $5.8 million within "cost of goods sold." All of the $13.7 million of restructuring charges recognized during the year ended December 2022 were reflected within "selling, general and administrative expenses." The Company also recognized a $2.6 million pension curtailment gain within "other expense, net" during the year ended December 2022. Refer to Note 1 All of the $0.8 million restructuring accrual reported in the Company's balance sheet at December 2023 is expected to be paid out within the next 12 months and is classified within "accrued liabilities." All of the $10.7 million restructuring accrual reported in the Company's balance sheet at December 2022 was classified within "accrued liabilities." The following table presents the components of restructuring charges: Year Ended December (In thousands) 2023 2022 2021 Severance and employee-related benefits $ 7,223 $ 13,688 $ 992 Asset impairments 3,064 — — Pension curtailment gain — (2,581) — Other 1,182 — — Total restructuring charges $ 11,469 $ 11,107 $ 992 The following table presents the restructuring costs by business segment: Year Ended December (In thousands) 2023 2022 2021 Wrangler $ 4,564 $ — $ 305 Lee 43 — 331 Corporate and other 6,862 11,107 356 Total $ 11,469 $ 11,107 $ 992 The following table presents activity in the restructuring accrual for the years ended December 2023 and December 2022: (In thousands) Severance Accrual at December 2021 $ 1,079 Charges 13,688 Cash payments (4,956) Adjustments to accruals 166 Currency translation 718 Accrual at December 2022 $ 10,695 Charges 7,223 Cash payments (17,338) Adjustments to accruals 6 Currency translation 241 Accrual at December 2023 $ 827 |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 12 Months Ended |
Dec. 30, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | SUBSEQUENT EVENT Dividend On February 15, 2024, the Board of Directors declared a regular quarterly cash dividend of $0.50 per share of the Company's Common Stock. The cash dividend will be payable on March 18, 2024, to shareholders of record at the close of business on March 8, 2024. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 30, 2023 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | Schedule II — Valuation and Qualifying Accounts ADDITIONS Description Balance at Beginning of Period Charged to Costs and Expenses Charged to Other Accounts Deductions Balance at End of Period (In thousands) Year ended December 2021 Allowance for doubtful accounts (a) $ 19,143 330 — 7,768 $ 11,705 Valuation allowance for deferred income tax assets (b) $ 23,118 2,010 (3,339) — $ 21,789 Year ended December 2022 Allowance for doubtful accounts (a) $ 11,705 (44) — 1,743 $ 9,918 Valuation allowance for deferred income tax assets (b) $ 21,789 4,881 (871) — $ 25,799 Year ended December 2023 Allowance for doubtful accounts (a) $ 9,918 (807) — 1,896 $ 7,215 Valuation allowance for deferred income tax assets (b) $ 25,799 (5,089) 65,503 — $ 86,213 (a) Deductions include accounts written off, net of recoveries, and the effects of foreign currency translation. (b) Amounts charged to costs and expenses relate to circumstances where it is more likely than not that deferred income tax assets will not be realized as well as the effects of foreign currency translation. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Pay vs Performance Disclosure | |||
Net income | $ 230,994 | $ 245,493 | $ 195,423 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
BASIS OF PRESENTATION AND SUM_2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 30, 2023 | |
Accounting Policies [Abstract] | |
Fiscal Year | Fiscal Year |
Basis of Presentation | Basis of Presentation - Consolidated Financial Statements The consolidated financial statements and related disclosures are presented in accordance with generally accepted accounting principles in the U.S. ("GAAP"). The Company’s consolidated financial statements are referred to throughout this Annual Report on Form 10-K as “financial statements." |
Use of Estimates | Use of Estimates In preparing the financial statements in accordance with GAAP, management makes estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. |
Foreign Currency Translation and Transactions | Foreign Currency Translation and Transactions The financial statements of most foreign subsidiaries are measured using the foreign currency as their functional currency. Assets and liabilities denominated in a foreign currency are translated into U.S. dollars using exchange rates in effect at the balance sheet dates, and revenues and expenses are translated at average exchange rates during the period. Resulting translation gains and losses are reported in other comprehensive income (“OCI”). Note 1 5 |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Accounts Receivable, Net of Allowance for Doubtful Accounts | Accounts Receivable, Net of Allowance for Doubtful Accounts Trade accounts receivable are recorded at invoiced amounts, less contractual allowances for trade terms and discounts. Royalty receivables are recorded at invoiced amounts based on the licensees’ sales of licensed products. The Company is exposed to credit losses primarily through trade accounts receivable from customers and licensees which are generally short-term in nature. The Company maintains an allowance for doubtful accounts that will result from the inability of customers to make required payments of outstanding balances. In estimating this allowance, accounts receivable are evaluated on a pooled basis at each reporting date and aggregated on the basis of similar risk characteristics, including current and forecasted industry trends and economic conditions, aging status of accounts, geographical location, and the financial strength and credit standing of customers, including payment and default history. Additionally, specific allowance amounts are established for customer balances that have a higher probability of default. Receivables are written off against the allowance when all collection efforts have been exhausted and the likelihood of collection is remote. |
Inventories | Inventories |
Property, Plant and Equipment and Capitalized Computer Software and Cloud Computing Arrangements | Property, Plant and Equipment Property, plant and equipment is initially recorded at cost. The Company capitalizes improvements to property, plant and equipment that substantially extend the useful life of an asset, and interest costs incurred during construction of major assets. Depreciation is computed using the straight-line method over each asset's estimated useful life, ranging from three Repair and maintenance costs are expensed as incurred. Capitalized Computer Software and Cloud Computing Arrangements five |
Intangible Assets | Intangible Assets Intangible assets include acquired trademarks and trade names, some of which are registered in multiple countries. Amortization of finite-lived trademarks and trade names is computed on a straight-line basis over a 16 year estimated useful life. Trademarks and trade names determined to have indefinite lives are not amortized. |
Depreciation and Amortization Expense | Depreciation and Amortization Expense Depreciation and amortization expense related to producing or otherwise obtaining finished goods inventories is reflected in the Company's statements of operations within "cost of goods sold" and all other depreciation and amortization expense is reflected within "selling, general and administrative expenses." |
Impairment of Long-lived Assets | Impairment of Long-lived Assets Property, Plant and Equipment, Operating Lease Assets and Finite-lived Intangible Assets — The Company’s policy is to review property, plant and equipment, right-of-use operating lease assets and amortizable intangible assets for possible impairment whenever events or changes in circumstances indicate that the carrying value of an asset or asset group may not be recoverable. If the forecasted undiscounted cash flows to be generated by an asset are not expected to recover the asset’s carrying value, the estimated fair value is calculated, and an impairment charge is recorded to the extent that an asset’s carrying value exceeds its estimated fair value. Goodwill and Indefinite-lived Intangible Assets — The Company’s policy is to evaluate goodwill and indefinite-lived intangible assets for possible impairment as of the beginning of the fourth quarter of each year, or whenever events or changes in circumstances indicate that the fair value of such assets may be below their carrying value. The Company may first assess qualitative factors as a basis for determining whether it is necessary to perform quantitative impairment testing. If the Company performs a qualitative analysis and determines that it is not more likely than not that the fair value of an asset or reporting unit is less than its carrying value, then no further testing is required. Otherwise, the assets must be quantitatively tested for possible impairment. Alternatively, the Company may elect to bypass a qualitative analysis and perform a quantitative analysis. If goodwill is quantitatively tested for possible impairment, the estimated fair value of a reporting unit is compared with its carrying value, including the goodwill assigned to that reporting unit. An impairment charge is recorded to the extent that the carrying value of the reporting unit exceeds its estimated fair value. An indefinite-lived intangible asset is quantitatively tested for possible impairment by comparing the estimated fair value of the asset with its carrying value. An impairment charge is recorded to the extent that the carrying value of the asset exceeds its estimated fair value. |
Leases and Rent Expense | Leases and Rent Expense The Company enters into operating leases for retail stores, operational facilities, vehicles and equipment, with terms expiring at various dates through 2033. Leases for real estate typically have initial terms ranging from one one The Company determines whether an arrangement is a lease at inception and combines lease and non-lease components as a single component for all asset classes. For leases with a term of 12 months or less, the Company does not recognize a right-of-use asset and related lease liability. Most leases have fixed rentals, with many of the real estate leases requiring additional payments for real estate taxes and occupancy-related costs. Certain of the Company’s leases contain fixed, indexed, or market-based escalation clauses which impact future payments. Variable payment provisions, such as contingent rent based on percent of sales or excess mileage over specified levels, are recognized when the liability is probable. The Company's leases typically contain customary covenants and restrictions. Rent expense for leases is recorded on a straight-line basis over the lease term beginning on the lease commencement date, which is the date the underlying asset is made available to the Company, and incorporates the effects of any associated landlord incentives or scheduled rent fluctuations. Lease agreements may include optional renewals, terminations or purchases, which are considered in the Company’s assessments of lease terms when such options are reasonably certain to be exercised. For retail real estate leases, the Company does not typically include renewal options in the underlying lease term. For non-retail real estate leases, the Company includes the renewal options in the underlying lease term if renewal options are reasonably certain to be exercised. Renewals for all other leases are determined on a lease-by-lease basis. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue when performance obligations under the terms of a contract with the customer are satisfied based on the transfer of control of promised goods or services. The transfer of control typically occurs at a point in time based on consideration of when the customer has i) an obligation to pay for, ii) physical possession of, iii) legal title to, iv) risks and rewards of ownership of and v) accepted the goods or services. Revenue recognition within the wholesale channels occurs either upon shipment or delivery of goods based on contractual terms with the customer. Revenue recognition in the direct-to-consumer channels typically occurs at the point of sale for Company-operated or concession retail stores and either upon shipment or delivery of goods for e-commerce transactions based on contractual terms with the customer. For finished products shipped directly to customers from our suppliers or other third parties, the Company’s promise to the customer is a performance obligation to provide the specified goods and the Company has discretion in establishing pricing. For each of these arrangements, the Company is the principal and revenue is recognized on a gross basis at the transaction price. Contractual arrangements with customers in our wholesale channels are typically on a purchase order basis with terms of less than one year. Payment terms with customers are typically between 30 and 60 days. The Company does not adjust the promised amount of consideration for the effects of a significant financing component as it is expected, at contract inception, that the period between the transfer of the promised good or service to the customer and the customer payment for the good or service will be one year or less. The amount of revenue recognized reflects the expected consideration to be received for providing the goods or services to the customer, net of estimates for variable consideration which includes allowances for trade terms, sales incentive programs, discounts, markdowns, chargebacks and product returns. Estimates of variable consideration are determined at contract inception and reassessed at each reporting date, at a minimum, to reflect any changes in facts and circumstances. The Company utilizes the expected value method in determining its estimates of variable consideration, based on evaluations of specific product and customer circumstances, historical and anticipated trends and current economic conditions. Estimates for variable consideration are recorded as "accrued liabilities" in the Company's balance sheets. Revenue from the sale of gift cards is deferred and recorded as a contract liability until the gift card is redeemed by the customer, factoring in breakage as appropriate, which considers whether the Company has a legal obligation to remit the value of the unredeemed gift card to any jurisdiction under unclaimed property regulations. The Company sponsors a customer loyalty program in certain regions which allows its direct-to-consumer customers to earn rewards that are redeemable for discounts on future purchases. Under the program, the Company estimates the standalone selling price of the loyalty rewards and allocates a portion of the consideration for the sale of products to the loyalty points earned. The deferred amount is recorded as a contract liability, and recognized as revenue when the points are redeemed or when the likelihood of redemption is remote. The Company has elected to treat all shipping and handling activities as fulfillment costs and recognize the costs as selling, general and administrative expenses at the time the related revenue is recognized. Shipping and handling costs billed to customers are included in net revenues. Sales taxes and value added taxes collected from customers and remitted directly to governmental authorities are excluded from the transaction price. The Company has licensing agreements for its symbolic intellectual property, most of which include minimum guarantees for sales-based royalties. Royalty income is recognized as earned over the respective license term based on the greater of minimum guarantees or the licensees’ sales of licensed products at rates specified in the licensing contracts. Royalty income related to the minimum guarantees is recognized using a measure of progress with variable amounts recognized only when the cumulative earned royalty exceeds the minimum guarantees and collection is probable. As of December 2023, the Company has contractual rights under its licensing agreements to receive $90.8 million of fixed consideration related to the future minimum guarantees through December 2029. The variable consideration is not disclosed as a remaining performance obligation as the licensing arrangements qualify for the sales-based royalty exemption. Royalty income was included within "net revenues" in the Company's statements of operations and was $37.1 million, $32.5 million and $26.6 million in 2023, 2022 and 2021, respectively. Disclosure is required for the aggregate transaction price allocated to performance obligations that are unsatisfied at the end of a reporting period, unless the optional practical expedients are applicable. The Company elected the practical expedients that do not require disclosure of the transaction price allocated to remaining performance obligations for (i) variable consideration related to sales-based royalty arrangements and (ii) contracts with an original expected duration of one year or less. The Company has applied the practical expedient to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that otherwise would have been recognized is one year or less. |
Cost of Goods Sold | Cost of Goods Sold |
Selling, General and Administrative Expenses | Selling, General and Administrative Expenses |
Derivative Financial Instruments | Derivative Financial Instruments Derivative financial instruments are measured at fair value in the Company's balance sheets. Unrealized gains and losses are recognized as assets and liabilities, respectively, and classified as current or noncurrent based on the derivatives’ maturity dates. The accounting for changes in the fair value of derivative instruments (i.e., gains and losses) depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. To qualify for hedge accounting treatment, all hedging relationships must be formally documented at the inception of the hedges and must be highly effective in offsetting changes in future cash flows of hedged transactions. Further, at the inception of a contract and on an ongoing basis, the Company assesses whether the hedging instruments are effective in offsetting the risk of the hedged transactions. Occasionally, a portion of a derivative instrument will be considered ineffective in hedging the originally identified exposure due to a decline in amount or a change in timing of the hedged exposure. In such cases, hedge accounting treatment is discontinued for the ineffective portion of that hedging instrument, and any change in fair value for the ineffective portion is recognized in net income. The Company does not use derivative instruments for trading or speculative purposes. Hedging cash flows are classified in the Company's statements of cash flows in the same category as the items being hedged. Hedging contracts are further described in Note 1 5 Cash Flow Hedges — The Company uses foreign currency exchange contracts primarily to hedge a portion of the exchange risk for its forecasted sales, purchases, intercompany service fees and royalties. The Company uses interest rate swap agreements to partially hedge the interest rate risk associated with the volatility of the applicable monthly interest rate benchmark in our debt agreement. Derivative Contracts Not Designated as Hedges — Any contracts that are not designated as hedges, primarily related to foreign currency exchange risk on certain accounts receivable and accounts payable, are recorded at fair value in the Company's balance sheets. Changes in the fair values of derivative contracts not designated as hedges are recognized directly in earnings. The counterparties to our derivative contracts are financial institutions with investment grade credit ratings, but this does not eliminate the Company's exposure to credit risk with these institutions. To manage its credit risk, the Company monitors the credit risks of its counterparties, limits its exposure in the aggregate and to any single counterparty, and adjusts its hedging positions as appropriate. The impact of the Company's credit risk and the credit risk of its counterparties, as well as the ability of each party to fulfill its obligations under the contracts, is considered in determining the fair value of the derivative contracts. Credit risk has not had a significant effect on the fair value of our derivative contracts. The counterparties to our derivative contracts are also lenders under our Credit Facilities (as defined in Not e 1 1 |
Self-insurance | Self-insurance The Company is self-insured for a significant portion of its employee medical, workers’ compensation, property and general liability exposures. Liabilities for self-insured exposures are accrued at the present value of amounts expected to be paid based on historical claims experience and actuarial data for forecasted settlements of claims filed and for incurred but not yet reported claims. Accruals for self-insured exposures are included in current and noncurrent liabilities based on the expected periods of payment. Excess liability insurance has been purchased to limit the amount of self-insured risk on claims. |
Income Taxes | Income Taxes Income taxes are provided on pre-tax income for financial reporting purposes. "Deferred income tax assets" and "deferred income tax liabilities," as presented in the Company's balance sheets, reflect the net future tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Net temporary differences and net operating losses are recorded utilizing tax rates currently enacted for the years in which the differences are expected to be settled or realized. We periodically assess the realizability of deferred tax assets and the adequacy of deferred tax liabilities, including the results of local, state, federal or foreign statutory tax audits and changes in estimates and judgments used. A valuation allowance is recognized if, based on the weight of available evidence, it is more likely than not (likelihood of more than 50%) that some portion, or all, of a deferred tax asset will not be realized. Accrued income taxes in the Company's balance sheets include unrecognized income tax benefits along with related interest and penalties, which are appropriately classified as current or noncurrent. All deferred tax assets and liabilities are classified as noncurrent in the Company's balance sheets. The provision for income taxes as presented in the Company's statements of income also includes estimated interest and penalties related to uncertain tax position s . |
Concentration of Risks | Concentration of Risks The Company markets products to a broad customer base throughout the world. Products are sold at a range of price points through our wholesale and direct-to-consumer channels. The Company’s two largest customers, both U.S.-based retailers, accounted for 36% and 11% of 2023 net revenues, and the top ten customers accounted for 62% of 2023 net revenues. Sales are typically made on an unsecured basis under customary terms that vary by product, channel of distribution or geographic region. The Company continuously monitors the creditworthiness of its customers and has established internal policies regarding customer credit limits. The Company is not aware of any issues with respect to relationships with any of its top customers. |
Legal and Other Contingencies | Legal and Other Contingencies Management periodically assesses liabilities and contingencies in connection with legal proceedings and other claims that may arise from time to time. When it is probable that a loss has been or will be incurred, an estimate of the loss is recorded in the financial statements. Estimates of losses are adjusted when additional information becomes available or circumstances change. A contingent liability is disclosed when there is at least a reasonable possibility that a material loss may have been incurred. Management believes that the outcome of any outstanding or pending matters, individually and in the aggregate, will not have a material adverse effect on the financial statements. |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share assumes conversion of potentially dilutive securities such as stock options, restricted stock and restricted stock units. |
Reclassifications | Reclassifications |
Recently Adopted and Issued Accounting Standards | Recently Adopted Accounting Standards In September 2022, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2022-04, "Disclosure of Supplier Finance Program Obligations," which requires entities that provide supplier finance programs in connection with the purchase of goods and services to disclose key terms of the programs, outstanding confirmed amounts as of period end, a description of where those obligations are presented in the balance sheets and an annual rollforward of obligations. This guidance was adopted by the Company during the first quarter of 2023, except for the requirement to include a rollforward of obligations which is effective beginning in 2024 with early adoption permitted. Refer to Note 10 Recently Issued Accounting Standards In November 2023, the FASB issued ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures," which requires enhanced disclosures about significant segment expenses. This guidance is effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. This guidance requires retrospective application to all prior periods presented in the financial statements. The Company is currently evaluating the impact that adoption of this guidance will have on its financial statements and disclosures. In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures," which requires disclosure of specific categories and greater disaggregation within the income tax rate reconciliation, and disclosure of disaggregated income taxes paid. This guidance is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact that adoption of this guidance will have on its financial statements and disclosures. |
Fair Value Measurement | Certain assets and liabilities measured and reported at fair value are classified in a three-level hierarchy that prioritizes the inputs used in the valuation process. Categorization within the valuation hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The hierarchy is based on the observability and objectivity of the pricing inputs, as follows: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Significant directly observable data (other than Level 1 quoted prices) or significant indirectly observable data through corroboration with observable market data. Inputs would normally be (i) quoted prices in active markets for similar assets or liabilities, (ii) quoted prices in inactive markets for identical or similar assets or liabilities or (iii) information derived from or corroborated by observable market data. • Level 3 — Prices or valuation techniques that require significant unobservable data inputs. These inputs would normally be the Company's own data and judgments about assumptions that market participants would use in pricing the asset or liability. |
REVENUES (Tables)
REVENUES (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables present revenues disaggregated by channel and geography. Revenues from licensing arrangements are included within the U.S. or Non-U.S. Wholesale channels, based on the respective region where the licensee sells the product. Direct-to-Consumer revenues include sales from company-operated Wrangler ® and Lee ® branded full-price and outlet stores, online and international concession arrangements. Other includes sales and licensing of Rock & Republic ® , other company-owned brands and private label apparel. Other also included sales of third-party branded merchandise at company-owned outlet stores through the first quarter of 2021, after which they were discontinued. Year Ended December 2023 (In thousands) Wrangler Lee Other Total Channel revenues U.S. Wholesale $ 1,418,102 $ 440,690 $ 10,149 $ 1,868,941 Non-U.S. Wholesale 181,766 246,873 10 428,649 Direct-to-Consumer 154,262 154,957 663 309,882 Total $ 1,754,130 $ 842,520 $ 10,822 $ 2,607,472 Geographic revenues U.S. $ 1,549,051 $ 500,816 $ 10,812 $ 2,060,679 International 205,079 341,704 10 546,793 Total $ 1,754,130 $ 842,520 $ 10,822 $ 2,607,472 Year Ended December 2022 (In thousands) Wrangler Lee Other Total Channel revenues U.S. Wholesale $ 1,423,757 $ 460,799 $ 9,903 $ 1,894,459 Non-U.S. Wholesale 183,714 266,201 903 450,818 Direct-to-Consumer 138,334 147,366 467 286,167 Total $ 1,745,805 $ 874,366 $ 11,273 $ 2,631,444 Geographic revenues U.S. $ 1,542,593 $ 521,636 $ 10,370 $ 2,074,599 International 203,212 352,730 903 556,845 Total $ 1,745,805 $ 874,366 $ 11,273 $ 2,631,444 Year Ended December 2021 (In thousands) Wrangler Lee Other Total Channel revenues U.S. Wholesale $ 1,269,718 $ 420,720 $ 9,979 $ 1,700,417 Non-U.S. Wholesale 186,355 301,332 2,854 490,541 Direct-to-Consumer 119,158 165,000 21 284,179 Other — — 779 779 Total $ 1,575,231 $ 887,052 $ 13,633 $ 2,475,916 Geographic revenues U.S. $ 1,370,916 $ 487,214 $ 10,779 $ 1,868,909 International 204,315 399,838 2,854 607,007 Total $ 1,575,231 $ 887,052 $ 13,633 $ 2,475,916 |
Contract with Customer, Asset and Liability | The following table presents information about contract balances recorded in the Company's balance sheets: (In thousands) December 2023 December 2022 Accounts receivable, net $ 217,673 $ 225,858 Contract assets (a) $ 10,929 $ 5,050 Contract liabilities (b) $ 1,713 $ 1,057 (a) Included within "prepaid expenses and other current assets" in the Company's balance sheets. (b) Included within "accrued liabilities" in the Company's balance sheets. |
BUSINESS SEGMENT INFORMATION (T
BUSINESS SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Segment Reporting [Abstract] | |
Financial Information for Reportable Segments | The following table presents financial information for the Company's reportable segments and income before income taxes: Year Ended December (In thousands) 2023 2022 2021 Segment revenues: Wrangler $ 1,754,130 $ 1,745,805 $ 1,575,231 Lee 842,520 874,366 887,052 Total reportable segment revenues 2,596,650 2,620,171 2,462,283 Other revenues 10,822 11,273 13,633 Total net revenues $ 2,607,472 $ 2,631,444 $ 2,475,916 Segment profit: Wrangler $ 307,521 $ 321,173 $ 294,153 Lee 98,148 121,056 128,305 Total reportable segment profit $ 405,669 $ 442,229 $ 422,458 Corporate and other expenses (96,075) (88,932) (140,960) Interest expense (40,408) (34,919) (38,900) Interest income 3,791 1,352 1,480 (Loss) profit related to other revenues (1,078) (594) 522 Income before income taxes $ 271,899 $ 319,136 $ 244,600 |
Reconciliation Assets | The following table presents assets for the Company's reportable segments and a reconciliation to total asset balances: (In thousands) December 2023 December 2022 Segment assets: Wrangler $ 335,629 $ 402,826 Lee 160,139 187,929 Total reportable segment assets 495,768 590,755 Other inventories 4,585 6,081 Total inventories $ 500,353 $ 596,836 All other assets 1,145,086 985,425 Total assets $ 1,645,439 $ 1,582,261 |
Revenue from External Customers and Property, Plant, and Equipment by Geographic Area | The following table presents supplemental information of net revenues by geographic area based on the location of the customer: Year Ended December (In thousands) 2023 2022 2021 Revenues: U.S. $ 2,060,679 $ 2,074,599 $ 1,868,909 International 546,793 556,845 607,007 Total $ 2,607,472 $ 2,631,444 $ 2,475,916 The following table presents "property, plant and equipment, net" recorded in the Company's balance sheets by geographic area based on physical location: (In thousands) December 2023 December 2022 Property, plant and equipment, net: U.S. $ 66,803 $ 63,704 International 45,242 40,761 Total $ 112,045 $ 104,465 |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Receivables [Abstract] | |
Components of Accounts Receivable | The following table presents components of "accounts receivable, net" recorded in the Company's balance sheets: (In thousands) December 2023 December 2022 Trade $ 200,911 $ 221,601 Royalty and other 23,977 14,175 Total accounts receivable 224,888 235,776 Less: allowance for doubtful accounts (7,215) (9,918) Accounts receivable, net $ 217,673 $ 225,858 |
Roll-Forward of the Allowance for Doubtful Accounts | The following table presents a rollforward of the allowance for doubtful accounts: (In thousands) Year Ended December Balance, December 2021 $ 11,705 Decrease in provision for expected credit losses (44) Accounts receivable balances written off (1,375) Other (1) (368) Balance, December 2022 $ 9,918 Decrease in provision for expected credit losses (807) Accounts receivable balances written off (2,388) Other (1) 492 Balance, December 2023 $ 7,215 (1) Other primarily includes the impact of foreign currency translation and recoveries of amounts previously written off, none of which were individually significant. |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | The following table presents components of "inventories" recorded in the Company's balance sheets: (In thousands) December 2023 December 2022 Finished products $ 421,051 $ 509,554 Work-in-process 35,722 34,316 Raw materials 43,580 52,966 Total inventories $ 500,353 $ 596,836 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Components of Property, Plant and Equipment | The following table presents components of "property, plant and equipment, net" recorded in the Company's balance sheets: (In thousands) December 2023 December 2022 Land and improvements $ 10,795 $ 10,770 Buildings and improvements 184,173 177,275 Machinery and equipment 335,574 329,415 Property, plant and equipment, at cost 530,542 517,460 Less: accumulated depreciation and amortization (418,497) (412,995) Property, plant and equipment, net $ 112,045 $ 104,465 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Indefinite-Lived Intangible Assets | The following tables present components of "intangible assets, net" recorded in the Company's balance sheets: (In thousands) Amortization Period Amortization Method Cost Accumulated Amortization Net Carrying Amount December 2023 Finite-lived intangible assets: Trademarks 16 years Straight-line $ 58,132 $ 50,083 $ 8,049 Indefinite-lived intangible assets: Trademarks and trade names 4,448 Intangible assets, net $ 12,497 (In thousands) Amortization Period Amortization Method Cost Accumulated Amortization Net Carrying Amount December 2022 Finite-lived intangible assets: Trademarks 16 years Straight-line $ 58,132 $ 49,077 $ 9,055 Indefinite-lived intangible assets: Trademarks and trade names 4,306 Intangible assets, net $ 13,361 |
Schedule of Finite-Lived Intangible Assets | The following tables present components of "intangible assets, net" recorded in the Company's balance sheets: (In thousands) Amortization Period Amortization Method Cost Accumulated Amortization Net Carrying Amount December 2023 Finite-lived intangible assets: Trademarks 16 years Straight-line $ 58,132 $ 50,083 $ 8,049 Indefinite-lived intangible assets: Trademarks and trade names 4,448 Intangible assets, net $ 12,497 (In thousands) Amortization Period Amortization Method Cost Accumulated Amortization Net Carrying Amount December 2022 Finite-lived intangible assets: Trademarks 16 years Straight-line $ 58,132 $ 49,077 $ 9,055 Indefinite-lived intangible assets: Trademarks and trade names 4,306 Intangible assets, net $ 13,361 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Goodwill | The following table presents changes in "goodwill" recorded in the Company's balance sheets, summarized by reportable segment: (In thousands) Wrangler Lee Total Balance, December 2021 $ 130,923 $ 81,290 $ 212,213 Currency translation (1,596) (990) (2,586) Balance, December 2022 129,327 80,300 209,627 Currency translation 145 90 235 Balance, December 2023 $ 129,472 $ 80,390 $ 209,862 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Other Assets [Abstract] | |
Components of Other Assets | The following table presents components of "other assets" recorded in the Company's balance sheets: (In thousands) December 2023 December 2022 Investments held for deferred compensation plans (Note 13) $ 39,966 $ 37,740 Capitalized computer software, net of accumulated amortization of $43,108 in 2023 and $28,855 in 2022 74,481 82,419 Deposits 3,475 3,372 Partnership stores and shop-in-shop costs, net of accumulated amortization of $16,380 in 2023 and $15,833 in 2022 3,888 3,255 Derivative assets (Note 15) 1,438 12,739 Other 14,010 14,703 Total other assets $ 137,258 $ 154,228 |
SHORT-TERM BORROWINGS AND LON_2
SHORT-TERM BORROWINGS AND LONG-TERM DEBT (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Debt Disclosure [Abstract] | |
Components of Long-term Debt | The following table presents the components of "long-term debt" as recorded in the Company's balance sheets: (In thousands) December 2023 December 2022 Revolving Credit Facility $ — $ — Term Loan A 388,481 397,954 4.125% Notes, due 2029 395,440 394,665 Total long-term debt 783,921 792,619 Less: current portion (20,000) (10,000) Long-term debt, due beyond one year $ 763,921 $ 782,619 |
Schedule of Payments of Long-Term Debt | The following table presents scheduled payments of long-term debt as of December 2023 for the next five years and thereafter: (In thousands) Future Principal Payments 2024 $ 20,000 2025 20,000 2026 350,000 2027 — 2028 — Thereafter 400,000 790,000 Less: unamortized deferred financing costs (6,079) Total long-term debt 783,921 Less: current portion (20,000) Long-term debt, due beyond one year $ 763,921 |
ACCRUED LIABILITIES AND OTHER_2
ACCRUED LIABILITIES AND OTHER LIABILITIES (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Payables and Accruals [Abstract] | |
Components of Accrued Liabilities and Other Liabilities | The following table presents components of "accrued liabilities" recorded as current liabilities in the Company's balance sheets: (In thousands) December 2023 December 2022 Customer discounts, allowances and incentives $ 42,159 $ 44,710 Compensation 37,501 35,483 Other taxes 21,580 14,628 Advertising 7,826 7,799 Derivative liabilities (Note 15) 4,009 1,218 Deferred compensation (Note 13) 6,284 5,392 Restructuring (Note 22) 827 10,695 Professional services 8,598 13,460 Income taxes payable 11,552 29,859 Customer deposits 5,833 6,715 Insurance 3,138 3,048 Contract liabilities (Note 2) 1,713 1,057 Other 20,394 22,925 Accrued liabilities $ 171,414 $ 196,989 The following table presents components of "other liabilities" recorded as noncurrent liabilities in the Company's balance sheets: (In thousands) December 2023 December 2022 Deferred compensation (Note 13) $ 42,855 $ 39,197 Derivative liabilities (Note 15) 1,112 1,089 Income taxes payable 13,949 15,359 Pension liabilities (Note 13) 3,491 4,334 Insurance 1,253 1,242 Other 11,944 8,810 Other liabilities $ 74,604 $ 70,031 |
RETIREMENT AND SAVINGS BENEFI_2
RETIREMENT AND SAVINGS BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Retirement Benefits [Abstract] | |
Components of Pension Cost | The following tables present key components of pension costs, amounts recorded in the balance sheets and related key assumptions: Year Ended December (In thousands) 2023 2022 2021 Amounts included in the statements of operations: Net pension costs $ 322 $ 811 $ 866 Curtailments $ — $ (2,581) $ — Actuarial assumptions used to determine pension expense: Discount rate in effect for determining service cost 0.91 % 0.64 % 0.64 % Rate of inflation 1.90 % 1.70 % 1.70 % Expected long-term return on plan assets 3.00 % 3.00 % 3.00 % Rate of compensation increase 3.10 % 2.90 % 2.90 % (In thousands) December 2023 December 2022 Amounts included in the balance sheets: Projected benefit obligations $ 14,348 $ 14,206 Fair value of plan assets 10,857 9,872 Funded status - recorded in other liabilities (Note 12) $ 3,491 $ 4,334 Accumulated other comprehensive gain, pretax - net deferred amounts 3,875 2,985 Actuarial assumptions used to determine pension obligations: Discount rate 3.18 % 0.91 % Rate of compensation increase 3.40 % 3.10 % Accumulated benefit obligations $ 11,808 $ 11,694 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Classes of Financial Assets and Financial Liabilities Measured and Recorded at Fair Value on Recurring Basis | The following tables present financial assets and financial liabilities that are measured and recorded in the Company's financial statements at fair value on a recurring basis: Fair Value Measurement Using (In thousands) Total Fair Value Level 1 Level 2 Level 3 December 2023 Financial assets: Cash equivalents: Money market funds $ 145,554 $ 145,554 $ — $ — Time deposits 2,283 2,283 — — Foreign currency exchange contracts 16,504 — 16,504 — Interest rate swap agreements 3,253 — 3,253 — Investment securities 46,250 46,250 — — Financial liabilities: Foreign currency exchange contracts 5,121 — 5,121 — Deferred compensation 49,139 — 49,139 — Fair Value Measurement Using (In thousands) Total Fair Value Level 1 Level 2 Level 3 December 2022 Financial assets: Cash equivalents: Money market funds $ 20,097 $ 20,097 $ — $ — Time deposits 2,194 2,194 — — Foreign currency exchange contracts 15,565 — 15,565 — Interest rate swap agreements 11,357 — 11,357 — Investment securities 43,131 43,131 — — Financial liabilities: Foreign currency exchange contracts 2,307 — 2,307 — Deferred compensation 44,589 — 44,589 — |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Outstanding Derivatives on Individual Contract Basis | The following table presents the fair value of outstanding derivatives on an individual contract basis: Fair Value of Derivatives with Unrealized Gains Fair Value of Derivatives with Unrealized Losses (In thousands) December 2023 December 2022 December 2023 December 2022 Derivatives designated as hedging instruments: Foreign currency exchange contracts $ 16,490 $ 15,565 $ (5,098) $ (2,307) Interest rate swap agreements 3,253 11,357 — — Derivatives not designated as hedging instruments: Foreign currency exchange contracts 14 — (23) — Total derivatives $ 19,757 $ 26,922 $ (5,121) $ (2,307) |
Fair Value of Derivative Assets and Liabilities in Balance Sheet | The following table presents a reconciliation of gross to net amounts for derivative asset and liability balances: December 2023 December 2022 (In thousands) Derivative Asset Derivative Liability Derivative Asset Derivative Liability Gross amounts presented in the balance sheet $ 19,757 $ (5,121) $ 26,922 $ (2,307) Gross amounts not offset in the balance sheet (894) 894 (1,629) 1,629 Net amounts $ 18,863 $ (4,227) $ 25,293 $ (678) |
Derivatives Classified as Current or Noncurrent Based on Maturity Dates | The following table presents the location of derivatives in the Company's balance sheets, with current or noncurrent classification based on maturity dates: (In thousands) December 2023 December 2022 Prepaid expenses and other current assets $ 18,319 $ 14,183 Accrued liabilities (4,009) (1,218) Other assets 1,438 12,739 Other liabilities (1,112) (1,089) |
Effects of Cash Flow Hedging Included in Consolidated Statements of Income and Consolidated Statements of Comprehensive Income | The following tables present the pre-tax effects of cash flow hedges included in the Company's statements of operations and statements of comprehensive income: Gain (Loss) on Derivatives Recognized in AOCL (In thousands) Year Ended December Cash Flow Hedging Relationships 2023 2022 2021 Foreign currency exchange contracts $ 22,590 $ 23,480 $ 6,900 Interest rate swap agreements 1,829 17,148 4,238 Total $ 24,419 $ 40,628 $ 11,138 Gain (Loss) Reclassified from AOCL into Income (In thousands) Year Ended December Location of Gain (Loss) 2023 2022 2021 Net revenues $ (219) $ (1,093) $ 204 Cost of goods sold 23,588 13,531 (2,271) Other expense, net 527 245 (749) Interest expense 9,933 (261) (6,019) Total $ 33,829 $ 12,422 $ (8,835) |
Derivatives Included in Consolidated Statements of Income | The following table presents a summary of the gain (loss) for derivative contracts not designated as hedges included in the Company's statements of operations: Gain (Loss) on Derivatives Recognized in Income (In thousands) Year Ended December Derivatives Not Designated as Hedges Location of Gain (Loss) on Derivatives Recognized in Income 2023 2022 2021 Foreign currency exchange contracts Net revenues $ — $ — $ (104) Cost of goods sold (226) 91 7 Other expense, net — — 385 Total $ (226) $ 91 $ 288 |
CAPITAL AND ACCUMULATED OTHER_2
CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Equity [Abstract] | |
Deferred Components of AOCL in Equity, Net of Related Taxes and Changes in AOCL and Related Tax Impact | The following table presents deferred components of AOCL in equity, net of related taxes: (In thousands) December 2023 December 2022 December 2021 Foreign currency translation $ (91,057) $ (107,462) $ (93,125) Defined benefit pension plans 2,913 2,243 (2,177) Derivative financial instruments 20,293 25,554 2,546 Accumulated other comprehensive loss $ (67,851) $ (79,665) $ (92,756) The following table presents changes in AOCL and related tax impact: (In thousands) Foreign Currency Translation Defined Benefit Pension Plans Derivative Financial Instruments Total Balance, December 2020 $ (80,178) $ (1,889) $ (12,740) $ (94,807) Other comprehensive income (loss) due to gains (losses) arising before reclassifications (12,947) (399) 11,138 (2,208) Reclassifications to net income of previously deferred (gains) losses — 15 8,835 8,850 Net other comprehensive income (loss) (12,947) (384) 19,973 6,642 Income taxes — 96 (4,687) (4,591) Balance, December 2021 $ (93,125) $ (2,177) $ 2,546 $ (92,756) Other comprehensive income (loss) due to gains (losses) arising before reclassifications (14,337) 8,438 40,628 34,729 Reclassifications to net income of previously deferred (gains) losses — (2,549) (12,422) (14,971) Net other comprehensive income (loss) (14,337) 5,889 28,206 19,758 Income taxes — (1,469) (5,198) (6,667) Balance, December 2022 $ (107,462) $ 2,243 $ 25,554 $ (79,665) Other comprehensive income (loss) due to gains (losses) arising before reclassifications 16,405 1,077 24,419 41,901 Reclassifications to net income of previously deferred (gains) losses — (187) (33,829) (34,016) Net other comprehensive income (loss) 16,405 890 (9,410) 7,885 Income taxes — (220) 4,149 3,929 Balance, December 2023 $ (91,057) $ 2,913 $ 20,293 $ (67,851) |
Reclassifications Out of AOCL | The following table presents reclassifications out of AOCL: (In thousands) Year Ended December Details About Accumulated Other Comprehensive Loss Reclassifications Affected Line Item in the Financial Statements 2023 2022 2021 Defined benefit pension plans: Net change in deferred losses during the period Selling, general and administrative expenses $ 187 $ (32) $ (15) Pension curtailment gains Other expense, net $ — $ 2,581 $ — Total before tax 187 2,549 (15) Income taxes Income taxes (47) (637) 3 Net of tax 140 1,912 (12) Gains (losses) on derivative financial instruments: Foreign currency exchange contracts Net revenues $ (219) $ (1,093) $ 204 Foreign currency exchange contracts Cost of goods sold 23,588 13,531 (2,271) Foreign currency exchange contracts Other expense, net 527 245 (749) Interest rate swap agreements Interest expense 9,933 (261) (6,019) Total before tax 33,829 12,422 (8,835) Income taxes Income taxes (3,541) (924) 2,724 Net of tax 30,288 11,498 (6,111) Total reclassifications for the period, net of tax $ 30,428 $ 13,410 $ (6,123) |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Total Stock-Based Compensation Cost and Associated Income Tax Benefits Recognized | The following table presents total stock-based compensation expense and the associated income tax benefits recognized in the statements of operations for all awards: Year Ended December (In thousands) 2023 2022 2021 Stock-based compensation expense $ 16,725 $ 21,891 $ 38,516 Income tax benefits 1,960 2,571 5,201 |
PRSU and RSU Activity | The following table presents PRSU and RSU activity from December 2022 to December 2023: Performance-based Nonperformance-based Number Outstanding Weighted Average Number Outstanding Weighted Average Outstanding at December 2022 799,351 $ 43.00 518,466 $ 38.21 Granted (1) 338,519 47.50 289,186 48.45 Issued as Common Stock (337,084) 45.60 (275,857) 34.49 Forfeited/canceled (22,694) 43.80 (18,460) 44.66 Outstanding at December 2023 778,092 $ 43.80 513,335 $ 45.75 Vested at December 2023 257,200 $ 46.00 20,838 $ — (1) Granted activity includes new awards granted during the year and dividend equivalents for both PRSUs and RSUs, as well as changes due to performance and market condition achievement for PRSUs. |
Stock Option Activity | The following table presents stock option activity for the year ended December 2023: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at December 2022 1,212,908 $ 26.70 3.7 $ 16,121 Exercised (391,687) 26.78 Outstanding at December 2023 821,221 $ 26.66 2.8 $ 29,368 Exercisable at December 2023 821,221 $ 26.66 2.8 $ 29,368 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Before Income Taxes for Which the Provision for Income Taxes was Computed | The following table presents income before income taxes used to calculate the provision for income taxes: Year Ended December (In thousands) 2023 2022 2021 Domestic $ 128,026 $ 153,936 $ 118,142 Foreign 143,873 165,200 126,458 Income before income taxes $ 271,899 $ 319,136 $ 244,600 |
Provision for Income Taxes | The following table presents components of the provision for income taxes: Year Ended December (In thousands) 2023 2022 2021 Current: Federal $ 26,290 $ 53,990 $ 24,514 Foreign 16,950 12,397 15,877 State 1,415 7,129 5,149 Total current income taxes 44,655 73,516 45,540 Deferred: Federal and state 6,848 (9,828) 2,951 Foreign (10,598) 9,955 686 Total deferred income taxes (3,750) 127 3,637 Total provision for income taxes $ 40,905 $ 73,643 $ 49,177 |
Differences Between Income Taxes Computed by Applying Statutory Federal Income Tax Rate and Income Tax Expense reported in Consolidated Financial Statements | The following table presents a reconciliation of the differences between income taxes computed by applying the statutory federal income tax rate and "income taxes" recorded in the Company's statements of operations: Year Ended December (In thousands) 2023 2022 2021 Tax at federal statutory rate $ 57,099 $ 67,019 $ 51,366 State income tax, net of federal tax benefit 2,614 4,542 5,167 Foreign rate differences (20,354) (9,849) (13,698) Employee compensation 1,216 2,121 940 Change in valuation allowance (5,089) 4,881 2,010 Global intangible low-tax income ("GILTI") 5,518 3,586 2,852 Other (99) 1,343 540 Income taxes $ 40,905 $ 73,643 $ 49,177 |
Deferred Income Tax Assets and Liabilities | The following table presents the components of "deferred income tax assets" and "deferred income tax liabilities" recorded in the Company's balance sheets: (In thousands) December 2023 December 2022 Deferred income tax assets: Inventories $ 11,592 $ 15,448 Deferred compensation 10,290 10,454 Other employee benefits 7,989 6,903 Stock-based compensation 4,139 5,286 Other accrued expenses 16,741 12,887 Intangible assets 29,232 31,589 Leases 12,055 11,161 Operating loss carryforwards 30,871 25,817 Tax credit carryforwards 69,221 2,645 Gross deferred income tax assets 192,130 122,190 Less: valuation allowance (86,213) (25,799) Net deferred income tax assets 105,917 96,391 Deferred income tax liabilities: Leases 11,595 10,373 Depreciation 20,929 22,152 Taxes on unremitted earnings 3,923 3,503 Deferred income tax liabilities 36,447 36,028 Total net deferred income tax assets $ 69,470 $ 60,363 Amounts included in the balance sheets: Deferred income tax assets $ 75,081 $ 67,282 Deferred income tax liabilities (5,611) (6,919) $ 69,470 $ 60,363 |
Reconciliation of Change in Accrual for Unrecognized Income Tax Benefits | The following table presents a reconciliation of the change in the accrual for unrecognized income tax benefits: (In thousands) Unrecognized Income Tax Benefits Accrued Interest and Penalties Unrecognized Income Tax Benefits Balance, December 2020 $ 11,893 $ 4,864 $ 16,757 Additions for current year tax positions 154 — 154 Additions for prior year tax positions 18 525 543 Reductions for prior year tax positions (348) (340) (688) Balance, December 2021 11,717 5,049 16,766 Additions for current year tax positions 169 — 169 Additions for prior year tax positions 853 857 1,710 Reductions for prior year tax positions — (30) (30) Reductions due to statute expirations (137) (58) (195) Balance, December 2022 12,602 5,818 18,420 Additions for current year tax positions 248 — 248 Additions for prior year tax positions 79 931 1,010 Reductions for prior year tax positions (345) (140) (485) Reductions due to statute expirations (2,249) (296) (2,545) Balance, December 2023 $ 10,335 $ 6,313 $ 16,648 |
Amounts Included in Consolidated Balance Sheets | (In thousands) December 2023 December 2022 Amounts included in the balance sheets: Unrecognized income tax benefits, including interest and penalties $ 16,648 $ 18,420 Less: deferred tax benefits (3,035) (3,445) Total unrecognized tax benefits $ 13,613 $ 14,975 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share Basic and Diluted | The following table presents the calculations of basic and diluted EPS: Year Ended December (In thousands, except per share amounts) 2023 2022 2021 Net income $ 230,994 $ 245,493 $ 195,423 Basic weighted average shares outstanding 55,961 55,744 57,394 Dilutive effect of stock-based awards 970 1,218 1,692 Diluted weighted average shares outstanding 56,931 56,962 59,086 Earnings per share: Basic earnings per share $ 4.13 $ 4.40 $ 3.40 Diluted earnings per share $ 4.06 $ 4.31 $ 3.31 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Leases [Abstract] | |
Schedule of Supplemental Balance Sheet Information | The following table presents lease-related assets and liabilities recorded in the Company's balance sheets: (In thousands) December 2023 December 2022 Assets Operating lease assets, noncurrent $ 54,812 $ 51,029 Total lease assets $ 54,812 $ 51,029 Liabilities Operating lease liabilities, current $ 21,003 $ 19,898 Operating lease liabilities, noncurrent 36,753 31,506 Total lease liabilities $ 57,756 $ 51,404 Weighted-average remaining lease term (in years) Operating leases 4.19 3.99 Weighted-average discount rate Operating leases 5.67 % 4.39 % |
Schedule of Lease Costs | The following table presents certain information related to lease costs for operating leases: Year Ended December (In thousands) 2023 2022 2021 Operating lease costs $ 31,543 $ 26,634 $ 30,394 Short-term lease costs (excluding leases of one month or less) 603 279 272 Variable lease costs 4,070 3,145 3,505 Total lease costs $ 36,216 $ 30,058 $ 34,171 The following table presents supplemental cash flow and non-cash information related to operating leases: Year Ended December (In thousands) 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities - operating cash flows $ 31,457 $ 29,977 $ 37,474 Right-of-use operating lease assets obtained in exchange for new operating leases - non-cash activity $ 14,964 $ 17,684 $ 4,323 |
Schedule of Maturities of Operating Leases | The following table presents future maturities of operating lease liabilities as of December 2023: (In thousands) Lease Obligations 2024 $ 23,353 2025 15,923 2026 8,372 2027 6,334 2028 3,556 Thereafter 7,010 Total future minimum lease payments 64,548 Less: amounts related to imputed interest (6,792) Present value of future minimum lease payments 57,756 Less: operating lease liabilities, current (21,003) Operating lease liabilities, noncurrent $ 36,753 |
RESTRUCTURING (Tables)
RESTRUCTURING (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Components of Restructuring Charges | The following table presents the components of restructuring charges: Year Ended December (In thousands) 2023 2022 2021 Severance and employee-related benefits $ 7,223 $ 13,688 $ 992 Asset impairments 3,064 — — Pension curtailment gain — (2,581) — Other 1,182 — — Total restructuring charges $ 11,469 $ 11,107 $ 992 The following table presents the restructuring costs by business segment: Year Ended December (In thousands) 2023 2022 2021 Wrangler $ 4,564 $ — $ 305 Lee 43 — 331 Corporate and other 6,862 11,107 356 Total $ 11,469 $ 11,107 $ 992 |
Schedule of Activity in Restructuring Accrual | The following table presents activity in the restructuring accrual for the years ended December 2023 and December 2022: (In thousands) Severance Accrual at December 2021 $ 1,079 Charges 13,688 Cash payments (4,956) Adjustments to accruals 166 Currency translation 718 Accrual at December 2022 $ 10,695 Charges 7,223 Cash payments (17,338) Adjustments to accruals 6 Currency translation 241 Accrual at December 2023 $ 827 |
BASIS OF PRESENTATION AND SUM_3
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Property, Plant and Equipment [Line Items] | |||
Foreign currency transaction gains (losses), net of related hedging impact | $ 12,500 | $ 7,900 | $ (3,100) |
Cash equivalents | 147,800 | 22,300 | |
Net revenues | 2,607,472 | 2,631,444 | 2,475,916 |
Advertising expense | 133,000 | 137,800 | 142,000 |
Cooperate advertising expense | 2,800 | 4,300 | 3,300 |
Shipping and handling expense | 93,500 | 89,000 | 84,400 |
Cost of goods sold | 1,519,635 | 1,497,076 | 1,368,190 |
Revision of Prior Period, Adjustment | |||
Property, Plant and Equipment [Line Items] | |||
Cost of goods sold | 14,500 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |||
Property, Plant and Equipment [Line Items] | |||
Remaining performance obligation | $ 90,800 | ||
Net revenues | Customer Concentration Risk | Large Customer 1 | |||
Property, Plant and Equipment [Line Items] | |||
Concentration risk, percentage | 36% | ||
Net revenues | Customer Concentration Risk | Large Customer 2 | |||
Property, Plant and Equipment [Line Items] | |||
Concentration risk, percentage | 11% | ||
Net revenues | Customer Concentration Risk | Top Ten Customers | |||
Property, Plant and Equipment [Line Items] | |||
Concentration risk, percentage | 62% | ||
Royalty | |||
Property, Plant and Equipment [Line Items] | |||
Net revenues | $ 37,100 | $ 32,500 | $ 26,600 |
Trademarks | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives of intangible assets | 16 years | 16 years | |
Machinery and equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives of assets | 3 years | ||
Machinery and equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives of assets | 10 years | ||
Building | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives of assets | 40 years | ||
Software Development | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives of assets | 5 years | ||
Software Development | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives of assets | 10 years | ||
Real Estate | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Term of contract | 1 year | ||
Real Estate | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Term of contract | 10 years | ||
Equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Term of contract | 1 year | ||
Equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Term of contract | 7 years |
BASIS OF PRESENTATION AND SUM_4
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Performance Obligations (Details) | Dec. 30, 2023 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation (in years) | 6 years |
REVENUES - Disaggregation of Re
REVENUES - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 2,607,472 | $ 2,631,444 | $ 2,475,916 |
U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 2,060,679 | 2,074,599 | 1,868,909 |
International | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 546,793 | 556,845 | 607,007 |
Wholesale | U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,868,941 | 1,894,459 | 1,700,417 |
Wholesale | International | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 428,649 | 450,818 | 490,541 |
Direct-to-Consumer | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 309,882 | 286,167 | 284,179 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 779 | ||
Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 2,596,650 | 2,620,171 | 2,462,283 |
Operating Segments | Wrangler | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,754,130 | 1,745,805 | 1,575,231 |
Operating Segments | Wrangler | U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,549,051 | 1,542,593 | 1,370,916 |
Operating Segments | Wrangler | International | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 205,079 | 203,212 | 204,315 |
Operating Segments | Wrangler | Wholesale | U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,418,102 | 1,423,757 | 1,269,718 |
Operating Segments | Wrangler | Wholesale | International | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 181,766 | 183,714 | 186,355 |
Operating Segments | Wrangler | Direct-to-Consumer | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 154,262 | 138,334 | 119,158 |
Operating Segments | Wrangler | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | ||
Operating Segments | Lee | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 842,520 | 874,366 | 887,052 |
Operating Segments | Lee | U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 500,816 | 521,636 | 487,214 |
Operating Segments | Lee | International | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 341,704 | 352,730 | 399,838 |
Operating Segments | Lee | Wholesale | U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 440,690 | 460,799 | 420,720 |
Operating Segments | Lee | Wholesale | International | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 246,873 | 266,201 | 301,332 |
Operating Segments | Lee | Direct-to-Consumer | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 154,957 | 147,366 | 165,000 |
Operating Segments | Lee | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | ||
Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 10,822 | 11,273 | 13,633 |
Other | U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 10,812 | 10,370 | 10,779 |
Other | International | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 10 | 903 | 2,854 |
Other | Wholesale | U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 10,149 | 9,903 | 9,979 |
Other | Wholesale | International | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 10 | 903 | 2,854 |
Other | Direct-to-Consumer | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 663 | $ 467 | 21 |
Other | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 779 |
REVENUES - Contract Assets and
REVENUES - Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable, net | $ 217,673 | $ 225,858 |
Contract assets | 10,929 | 5,050 |
Contract liabilities | $ 1,713 | $ 1,057 |
REVENUES - Narrative (Details)
REVENUES - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
Contract with customer, liability, revenue recognized | $ 0.4 | $ 1.5 |
BUSINESS SEGMENT INFORMATION -
BUSINESS SEGMENT INFORMATION - Narrative (Details) - segment | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | 2 | ||
Largest Customer | Net revenues | Customer Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 36% | 36% | 34% |
Customer Two | Net revenues | Customer Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 11% | 11% | 9% |
BUSINESS SEGMENT INFORMATION _2
BUSINESS SEGMENT INFORMATION - Financial Information for Reportable Segments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Segment Reporting Information [Line Items] | |||
Total net revenues | $ 2,607,472 | $ 2,631,444 | $ 2,475,916 |
Operating income | 319,269 | 356,665 | 282,979 |
Interest expense | (40,408) | (34,919) | (38,900) |
Interest income | 3,791 | 1,352 | 1,480 |
Income before income taxes | 271,899 | 319,136 | 244,600 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total net revenues | 2,596,650 | 2,620,171 | 2,462,283 |
Operating income | 405,669 | 442,229 | 422,458 |
Operating Segments | Wrangler | |||
Segment Reporting Information [Line Items] | |||
Total net revenues | 1,754,130 | 1,745,805 | 1,575,231 |
Operating income | 307,521 | 321,173 | 294,153 |
Operating Segments | Lee | |||
Segment Reporting Information [Line Items] | |||
Total net revenues | 842,520 | 874,366 | 887,052 |
Operating income | 98,148 | 121,056 | 128,305 |
Corporate and other expenses | |||
Segment Reporting Information [Line Items] | |||
Corporate and other expenses | (96,075) | (88,932) | (140,960) |
Other | |||
Segment Reporting Information [Line Items] | |||
Total net revenues | 10,822 | 11,273 | 13,633 |
Operating income | $ (1,078) | $ (594) | $ 522 |
BUSINESS SEGMENT INFORMATION _3
BUSINESS SEGMENT INFORMATION - Reconciliation Assets (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 1,645,439 | $ 1,582,261 |
Total inventories | 500,353 | 596,836 |
All other assets | 1,145,086 | 985,425 |
Operating Segments | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 495,768 | 590,755 |
Operating Segments | Wrangler | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 335,629 | 402,826 |
Operating Segments | Lee | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 160,139 | 187,929 |
Other | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total inventories | $ 4,585 | $ 6,081 |
BUSINESS SEGMENT INFORMATION _4
BUSINESS SEGMENT INFORMATION - Supplemental Information (with Revenues by Geographic Area Based on Location of Customer) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Segment Reporting Information [Line Items] | |||
Net revenues | $ 2,607,472 | $ 2,631,444 | $ 2,475,916 |
Property, plant and equipment, net | 112,045 | 104,465 | |
U.S. | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 2,060,679 | 2,074,599 | 1,868,909 |
Property, plant and equipment, net | 66,803 | 63,704 | |
International | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 546,793 | 556,845 | $ 607,007 |
Property, plant and equipment, net | $ 45,242 | $ 40,761 |
ACCOUNTS RECEIVABLE - Component
ACCOUNTS RECEIVABLE - Components of Accounts Receivable (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable | $ 224,888 | $ 235,776 |
Less: allowance for doubtful accounts | (7,215) | (9,918) |
Accounts receivable, net | 217,673 | 225,858 |
Trade | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable | 200,911 | 221,601 |
Royalty and other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable | $ 23,977 | $ 14,175 |
ACCOUNTS RECEIVABLE - Roll-Forw
ACCOUNTS RECEIVABLE - Roll-Forward of the Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 9,918 | $ 11,705 | |
Provision for doubtful accounts | (807) | (44) | $ 330 |
Accounts receivable balances written off | (2,388) | (1,375) | |
Other | 492 | (368) | |
Ending balance | $ 7,215 | $ 9,918 | $ 11,705 |
ACCOUNTS RECEIVABLE - Narrative
ACCOUNTS RECEIVABLE - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Receivables [Abstract] | |||
Maximum amount of accounts receivable sold at any point in time | $ 377.5 | ||
Sale of accounts receivable | 1,400 | $ 1,400 | $ 1,200 |
Decrease in receivables related to balances sold | 197.7 | 246 | |
Funding fee | $ 12 | $ 5.6 | $ 1.8 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 421,051 | $ 509,554 |
Work-in-process | 35,722 | 34,316 |
Raw materials | 43,580 | 52,966 |
Total inventories | $ 500,353 | $ 596,836 |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - Components of Property, Plant, and Equipment (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | $ 530,542 | $ 517,460 |
Less: accumulated depreciation and amortization | (418,497) | (412,995) |
Property, plant and equipment, net | 112,045 | 104,465 |
Land and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 10,795 | 10,770 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 184,173 | 177,275 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | $ 335,574 | $ 329,415 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 20.2 | $ 21.4 | $ 22.4 |
INTANGIBLE ASSETS - Schedule of
INTANGIBLE ASSETS - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Trademarks and trade names | $ 4,448 | $ 4,306 |
Intangible assets, net | $ 12,497 | $ 13,361 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 16 years | 16 years |
Cost | $ 58,132 | $ 58,132 |
Accumulated Amortization | 50,083 | 49,077 |
Amortizable intangible assets, net carrying amount | $ 8,049 | $ 9,055 |
INTANGIBLE ASSETS - Narrative (
INTANGIBLE ASSETS - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of intangible assets | $ 1 | $ 1 | $ 1 |
Estimated amortization expense, 2023 | 1 | ||
Estimated amortization expense, 2024 | 1 | ||
Estimated amortization expense, 2025 | 1 | ||
Estimated amortization expense, 2026 | 1 | ||
Estimated amortization expense, 2027 | $ 1 |
GOODWILL - Changes in Goodwill
GOODWILL - Changes in Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 209,627 | $ 212,213 |
Currency translation | 235 | (2,586) |
Goodwill, ending balance | 209,862 | 209,627 |
Wrangler | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 129,327 | 130,923 |
Currency translation | 145 | (1,596) |
Goodwill, ending balance | 129,472 | 129,327 |
Lee | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 80,300 | 81,290 |
Currency translation | 90 | (990) |
Goodwill, ending balance | $ 80,390 | $ 80,300 |
OTHER ASSETS (Details)
OTHER ASSETS (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Other Assets [Abstract] | ||
Investments held for deferred compensation plans (Note 13) | $ 39,966 | $ 37,740 |
Capitalized computer software, net of accumulated amortization | 43,108 | 28,855 |
Capitalized computer software, net of accumulated amortization of $43,108 in 2023 and $28,855 in 2022 | 74,481 | 82,419 |
Deposits | 3,475 | 3,372 |
Partnership stores and shop-in shop costs, net of accumulated amortization | 16,380 | 15,833 |
Partnership stores and shop-in-shop costs, net of accumulated amortization of $16,380 in 2023 and $15,833 in 2022 | 3,888 | 3,255 |
Derivative assets (Note 15) | 1,438 | 12,739 |
Other | 14,010 | 14,703 |
Total other assets | $ 137,258 | $ 154,228 |
Supply Chain Financing (Details
Supply Chain Financing (Details) - USD ($) $ in Millions | Dec. 30, 2023 | Dec. 31, 2022 |
Supply Chain Financing [Abstract] | ||
Accounts payable, trade | $ 19.7 | $ 24.7 |
SHORT-TERM BORROWINGS AND LON_3
SHORT-TERM BORROWINGS AND LONG-TERM DEBT - Short-term Borrowings (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Short-term Debt [Line Items] | ||
Short-term borrowings | $ 0 | $ 7,280 |
Other short-term borrowings | 0 | 200 |
International borrowing arrangements | ||
Short-term Debt [Line Items] | ||
Debt capacity | 24,100 | 24,800 |
Short-term borrowings | $ 0 | $ 7,100 |
SHORT-TERM BORROWINGS AND LON_4
SHORT-TERM BORROWINGS AND LONG-TERM DEBT - Components of Long-term Debt (Details) - USD ($) | Dec. 30, 2023 | Dec. 31, 2022 | Nov. 18, 2021 |
Debt Instrument [Line Items] | |||
Total long-term debt | $ 783,921,000 | $ 792,619,000 | |
Less: current portion | (20,000,000) | (10,000,000) | |
Long-term debt, due beyond one year | 763,921,000 | 782,619,000 | |
Term Loan A | Term Loan A | |||
Debt Instrument [Line Items] | |||
Total long-term debt | 388,481,000 | 397,954,000 | |
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Total long-term debt | 0 | 0 | |
Senior Notes | 4.125% Notes, due 2029 | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 395,440,000 | $ 394,665,000 | |
Debt instrument, interest rate, stated percentage | 4.125% |
SHORT-TERM BORROWINGS AND LON_5
SHORT-TERM BORROWINGS AND LONG-TERM DEBT - Credit Facilities (Details) | 12 Months Ended | ||
Nov. 18, 2021 USD ($) | Dec. 30, 2023 USD ($) election | Dec. 31, 2022 USD ($) | |
Debt Instrument [Line Items] | |||
Long-term debt | $ 790,000,000 | ||
Total long-term debt | $ 783,921,000 | $ 792,619,000 | |
Debt instrument, leverage ratio, number of elections to increase the limit (up to) | election | 2 | ||
Maximum | |||
Debt Instrument [Line Items] | |||
Leverage ratio | 4.50 | ||
Debt instrument, leverage ratio, limit increase | 5 | ||
Minimum | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest coverage ratio | 3 | ||
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Debt instrument, term | 5 years | ||
Debt capacity | $ 500,000,000 | ||
Total long-term debt | $ 0 | 0 | |
Remaining borrowing capacity | 493,300,000 | ||
Letter of Credit | |||
Debt Instrument [Line Items] | |||
Debt capacity | 75,000,000 | ||
Long-term line of credit | $ 6,700,000 | ||
4.125% Notes, due 2029 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Effective annual interest rate | 4.30% | ||
Total long-term debt | $ 395,440,000 | 394,665,000 | |
Term Loan A | Term Loan A | |||
Debt Instrument [Line Items] | |||
Debt instrument, term | 5 years | ||
Debt capacity | $ 400,000,000 | ||
Long-term debt | $ 390,000,000 | 400,000,000 | |
Effective annual interest rate | 4.40% | ||
Total long-term debt | $ 388,481,000 | $ 397,954,000 |
SHORT-TERM BORROWINGS AND LON_6
SHORT-TERM BORROWINGS AND LONG-TERM DEBT - Senior Notes (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Nov. 18, 2021 | Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Debt Instrument [Line Items] | ||||
Total long-term debt | $ 783,921 | $ 792,619 | ||
Interest expense | 40,408 | 34,919 | $ 38,900 | |
4.125% Notes, due 2029 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 400,000 | 400,000 | 400,000 | |
Debt instrument, interest rate, stated percentage | 4.125% | |||
Total long-term debt | $ 395,440 | $ 394,665 | ||
Effective annual interest rate | 4.30% | |||
Debt issuance costs | $ 6,200 | |||
4.125% Notes, due 2029 | Senior Notes | Debt Instrument, Redemption, Period One | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, redemption price, percentage | 100% | |||
4.125% Notes, due 2029 | Senior Notes | Debt Instrument, Redemption, Period Two | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, redemption price, percentage | 104.125% | |||
Debt instrument, redemption price, percentage of principal amount redeemed | 40% | |||
Debt instrument, redemption price, percentage of principal maximum amount | 90% | |||
Term Loan A | ||||
Debt Instrument [Line Items] | ||||
Interest expense | $ 6,600 | |||
Amendment Credit Agreement | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Debt issuance costs | $ 2,100 |
SHORT-TERM BORROWINGS AND LON_7
SHORT-TERM BORROWINGS AND LONG-TERM DEBT - Schedule of Payments of Long-Term Debt (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Debt Disclosure [Abstract] | ||
2024 | $ 20,000 | |
2025 | 20,000 | |
2026 | 350,000 | |
2027 | 0 | |
2028 | 0 | |
Thereafter | 400,000 | |
Long-term debt | 790,000 | |
Less: unamortized deferred financing costs | (6,079) | |
Total long-term debt | 783,921 | $ 792,619 |
Less: current portion | (20,000) | (10,000) |
Long-term debt, due beyond one year | $ 763,921 | $ 782,619 |
ACCRUED LIABILITIES AND OTHER_3
ACCRUED LIABILITIES AND OTHER LIABILITIES - Components of Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Customer discounts, allowances and incentives | $ 42,159 | $ 44,710 |
Compensation | 37,501 | 35,483 |
Other taxes | 21,580 | 14,628 |
Advertising | 7,826 | 7,799 |
Derivative liabilities (Note 15) | 4,009 | 1,218 |
Deferred compensation (Note 13) | 6,284 | 5,392 |
Restructuring (Note 22) | 827 | 10,695 |
Professional services | 8,598 | 13,460 |
Income taxes payable | 11,552 | 29,859 |
Customer deposits | 5,833 | 6,715 |
Insurance | 3,138 | 3,048 |
Contract liabilities (Note 2) | 1,713 | 1,057 |
Other | 20,394 | 22,925 |
Accrued liabilities | $ 171,414 | $ 196,989 |
ACCRUED LIABILITIES AND OTHER_4
ACCRUED LIABILITIES AND OTHER LIABILITIES - Components of Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Deferred compensation (Note 13) | $ 42,855 | $ 39,197 |
Derivative liabilities (Note 15) | 1,112 | 1,089 |
Income taxes payable | 13,949 | 15,359 |
Pension liabilities (Note 13) | 3,491 | 4,334 |
Insurance | 1,253 | 1,242 |
Other | 11,944 | 8,810 |
Other liabilities | $ 74,604 | $ 70,031 |
RETIREMENT AND SAVINGS BENEFI_3
RETIREMENT AND SAVINGS BENEFIT PLANS - Reconciliation of Changes in Fair Value of Defined Benefit Plan Assets and Projected Benefit Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Amounts included in the statements of operations: | |||
Net pension costs | $ 322 | $ 811 | $ 866 |
Curtailments | $ 0 | $ (2,581) | $ 0 |
Actuarial assumptions used to determine pension expense: | |||
Discount rate in effect for determining service cost | 0.91% | 0.64% | 0.64% |
Rate of inflation | 1.90% | 1.70% | 1.70% |
Expected long-term return on plan assets | 3% | 3% | 3% |
Rate of compensation increase | 3.10% | 2.90% | 2.90% |
Amounts included in the balance sheets: | |||
Projected benefit obligations | $ 14,348 | $ 14,206 | |
Fair value of plan assets | 10,857 | 9,872 | |
Funded status - recorded in other liabilities (Note 12) | 3,491 | 4,334 | |
Accumulated other comprehensive gain, pretax - net deferred amounts | $ 3,875 | $ 2,985 | |
Actuarial assumptions used to determine pension obligations: | |||
Discount rate | 3.18% | 0.91% | |
Rate of compensation increase | 3.40% | 3.10% | |
Accumulated benefit obligations | $ 11,808 | $ 11,694 |
RETIREMENT AND SAVINGS BENEFI_4
RETIREMENT AND SAVINGS BENEFIT PLANS - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic benefit cost (credit), gain (loss) due to curtailment | $ 0 | $ 2,581 | $ 0 |
Current liability to participants of the deferred compensation plans | 6,284 | 5,392 | |
Deferred compensation | 42,855 | 39,197 | |
Other Postretirement Benefit Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Deferred compensation liability, current and noncurrent | 46,300 | 43,100 | |
Current liability to participants of the deferred compensation plans | 6,300 | 5,400 | |
Deferred compensation | 40,000 | 37,700 | |
Fair value of investments | 46,300 | 43,100 | |
Deferred compensation plans expense | 9,800 | 9,300 | $ 8,600 |
Other Postretirement Benefit Plans | Other current assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of investments | 6,300 | 5,400 | |
Other Postretirement Benefit Plans | Other assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of investments | 40,000 | 37,700 | |
Other Postretirement Benefit Plans | Director | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Deferred compensation liability, current and noncurrent | $ 2,900 | $ 1,500 |
FAIR VALUE MEASUREMENTS - Class
FAIR VALUE MEASUREMENTS - Classes of Financial Assets and Financial Liabilities Measured and Recorded at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Cash equivalents: | ||
Derivative asset | $ 18,863 | $ 25,293 |
Investment securities | 46,250 | 43,131 |
Financial liabilities: | ||
Derivative liabilities (Note 15) | 5,121 | 2,307 |
Deferred compensation | 49,139 | 44,589 |
Money market funds | ||
Cash equivalents: | ||
Cash equivalent | 145,554 | 20,097 |
Time deposits | ||
Cash equivalents: | ||
Cash equivalent | 2,283 | 2,194 |
Level 1 | ||
Cash equivalents: | ||
Investment securities | 46,250 | 43,131 |
Financial liabilities: | ||
Deferred compensation | 0 | 0 |
Level 1 | Money market funds | ||
Cash equivalents: | ||
Cash equivalent | 145,554 | 20,097 |
Level 1 | Time deposits | ||
Cash equivalents: | ||
Cash equivalent | 2,283 | 2,194 |
Level 2 | ||
Cash equivalents: | ||
Investment securities | 0 | 0 |
Financial liabilities: | ||
Deferred compensation | 49,139 | 44,589 |
Level 2 | Money market funds | ||
Cash equivalents: | ||
Cash equivalent | 0 | 0 |
Level 2 | Time deposits | ||
Cash equivalents: | ||
Cash equivalent | 0 | 0 |
Level 3 | ||
Cash equivalents: | ||
Investment securities | 0 | 0 |
Financial liabilities: | ||
Deferred compensation | 0 | 0 |
Level 3 | Money market funds | ||
Cash equivalents: | ||
Cash equivalent | 0 | 0 |
Level 3 | Time deposits | ||
Cash equivalents: | ||
Cash equivalent | 0 | 0 |
Foreign currency exchange contracts | ||
Cash equivalents: | ||
Derivative asset | 16,504 | 15,565 |
Financial liabilities: | ||
Derivative liabilities (Note 15) | 5,121 | 2,307 |
Foreign currency exchange contracts | Level 1 | ||
Cash equivalents: | ||
Derivative asset | 0 | 0 |
Financial liabilities: | ||
Derivative liabilities (Note 15) | 0 | 0 |
Foreign currency exchange contracts | Level 2 | ||
Cash equivalents: | ||
Derivative asset | 16,504 | 15,565 |
Financial liabilities: | ||
Derivative liabilities (Note 15) | 5,121 | 2,307 |
Foreign currency exchange contracts | Level 3 | ||
Cash equivalents: | ||
Derivative asset | 0 | 0 |
Financial liabilities: | ||
Derivative liabilities (Note 15) | 0 | 0 |
Interest rate swap agreements | ||
Cash equivalents: | ||
Derivative asset | 3,253 | 11,357 |
Interest rate swap agreements | Level 1 | ||
Cash equivalents: | ||
Derivative asset | 0 | 0 |
Interest rate swap agreements | Level 2 | ||
Cash equivalents: | ||
Derivative asset | 3,253 | 11,357 |
Interest rate swap agreements | Level 3 | ||
Cash equivalents: | ||
Derivative asset | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term debt, carrying value | $ 783,921,000 | $ 792,619,000 | |
Impairment of operating lease assets | 1,100,000 | ||
Impairment of property, plant and equipment | $ 300,000 | ||
Impairment, Long-Lived Asset, Held-for-Use, Statement of Income or Comprehensive Income [Extensible Enumeration] | Selling, general and administrative expenses | ||
Goodwill impairment charges | $ 0 | 0 | $ 0 |
Impairment of indefinite lived intangible assets | 0 | 0 | $ 0 |
Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term debt, fair value | $ 747,100,000 | $ 718,000,000 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Reclassified from AOCL into earnings | $ 0 | $ 0 | $ 0 |
Cash flow hedge gain to be reclassified during next 12 months | 18,700,000 | ||
Foreign currency exchange contracts | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional amount | $ 348,800,000 | 322,300,000 | |
Term of contract | 20 months | ||
Interest rate swap agreements | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional amount | $ 300,000,000 | $ 300,000,000 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Outstanding Derivatives on Individual Contract Basis (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Fair Value of Derivatives with Unrealized Gains | ||
Total derivatives | $ 19,757 | $ 26,922 |
Fair Value of Derivatives with Unrealized Losses | ||
Total derivatives | (5,121) | (2,307) |
Foreign currency exchange contracts | Derivatives designated as hedging instruments: | ||
Fair Value of Derivatives with Unrealized Gains | ||
Derivatives designated as hedging instruments: | 16,490 | 15,565 |
Fair Value of Derivatives with Unrealized Losses | ||
Derivatives designated as hedging instruments: | (5,098) | (2,307) |
Foreign currency exchange contracts | Derivatives not designated as hedging instruments: | ||
Fair Value of Derivatives with Unrealized Gains | ||
Derivatives not designated as hedging instruments: | 14 | 0 |
Fair Value of Derivatives with Unrealized Losses | ||
Derivatives not designated as hedging instruments: | (23) | 0 |
Interest rate swap agreements | Derivatives designated as hedging instruments: | ||
Fair Value of Derivatives with Unrealized Gains | ||
Derivatives designated as hedging instruments: | 3,253 | 11,357 |
Fair Value of Derivatives with Unrealized Losses | ||
Derivatives designated as hedging instruments: | $ 0 | $ 0 |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Fair Value of Derivative Assets and Liabilities in Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Derivative Asset | ||
Gross amounts presented in the balance sheet | $ 19,757 | $ 26,922 |
Gross amounts not offset in the balance sheet | (894) | (1,629) |
Net amounts | 18,863 | 25,293 |
Derivative Liability | ||
Derivative liabilities (Note 15) | (5,121) | (2,307) |
Gross amounts not offset in the balance sheet | 894 | 1,629 |
Net amounts | $ (4,227) | $ (678) |
DERIVATIVE FINANCIAL INSTRUME_6
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Derivatives Classified as Current or Noncurrent Based on Maturity Dates (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts | $ 19,757 | $ 26,922 |
Foreign currency exchange contracts, liabilities | (5,121) | (2,307) |
Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts | 18,319 | 14,183 |
Accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts, liabilities | (4,009) | (1,218) |
Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts | 1,438 | 12,739 |
Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts, liabilities | $ (1,112) | $ (1,089) |
DERIVATIVE FINANCIAL INSTRUME_7
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Cash Flow Hedging Relationships (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Derivative [Line Items] | |||
Gain (Loss) on Derivatives Recognized in AOCL | $ 24,419 | $ 40,628 | $ 11,138 |
Foreign currency exchange contracts | |||
Derivative [Line Items] | |||
Gain (Loss) on Derivatives Recognized in AOCL | 22,590 | 23,480 | 6,900 |
Interest rate swap agreements | |||
Derivative [Line Items] | |||
Gain (Loss) on Derivatives Recognized in AOCL | $ 1,829 | $ 17,148 | $ 4,238 |
DERIVATIVE FINANCIAL INSTRUME_8
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Location of Gain (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Derivative [Line Items] | |||
Gain (Loss) Reclassified from AOCL into Income | $ 33,829 | $ 12,422 | $ (8,835) |
Net revenues | |||
Derivative [Line Items] | |||
Gain (Loss) Reclassified from AOCL into Income | (219) | (1,093) | 204 |
Cost of goods sold | |||
Derivative [Line Items] | |||
Gain (Loss) Reclassified from AOCL into Income | 23,588 | 13,531 | (2,271) |
Other expense, net | |||
Derivative [Line Items] | |||
Gain (Loss) Reclassified from AOCL into Income | 527 | 245 | (749) |
Interest expense | |||
Derivative [Line Items] | |||
Gain (Loss) Reclassified from AOCL into Income | $ 9,933 | $ (261) | $ (6,019) |
DERIVATIVE FINANCIAL INSTRUME_9
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Derivatives Included in Consolidated Statements of Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) on Derivatives Recognized in Income | $ (226) | $ 91 | $ 288 |
Net revenues | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) on Derivatives Recognized in Income | 0 | 0 | (104) |
Cost of goods sold | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) on Derivatives Recognized in Income | (226) | 91 | 7 |
Other expense, net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) on Derivatives Recognized in Income | $ 0 | $ 0 | $ 385 |
CAPITAL AND ACCUMULATED OTHER_3
CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE LOSS - Narrative (Details) - USD ($) | 12 Months Ended | ||||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | Dec. 11, 2023 | Aug. 05, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Stock repurchase program | $ 300,000,000 | $ 200,000,000 | |||
Repurchase of common stock | $ 30,111,000 | $ 62,494,000 | $ 75,462,000 | ||
Common Stock | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Repurchase of common stock (in shares) | 579,000 | 1,495,000 | 1,378,000 | ||
Repurchase of common stock | $ 30,100,000 | $ 62,500,000 | $ 75,500,000 |
CAPITAL AND ACCUMULATED OTHER_4
CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE LOSS - Deferred Components of AOCL in Equity, Net of Related Taxes (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive loss | $ 371,913 | $ 250,757 | $ 148,138 | $ 84,641 |
Accumulated Other Comprehensive Loss | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive loss | (67,851) | (79,665) | (92,756) | (94,807) |
Foreign Currency Translation | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive loss | (91,057) | (107,462) | (93,125) | (80,178) |
Defined Benefit Pension Plans | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive loss | 2,913 | 2,243 | (2,177) | (1,889) |
Derivative Financial Instruments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive loss | $ 20,293 | $ 25,554 | $ 2,546 | $ (12,740) |
CAPITAL AND ACCUMULATED OTHER_5
CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE LOSS - Changes in AOCL and Related Tax Impact (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ 250,757 | $ 148,138 | $ 84,641 |
Other comprehensive income (loss) due to gains (losses) arising before reclassifications | 41,901 | 34,729 | (2,208) |
Reclassifications to net income of previously deferred (gains) losses | (34,016) | (14,971) | 8,850 |
Net other comprehensive income (loss) | 7,885 | 19,758 | 6,642 |
Income taxes | 3,929 | (6,667) | (4,591) |
Ending balance | 371,913 | 250,757 | 148,138 |
Accumulated other comprehensive loss | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (79,665) | (92,756) | (94,807) |
Ending balance | (67,851) | (79,665) | (92,756) |
Foreign Currency Translation | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (107,462) | (93,125) | (80,178) |
Other comprehensive income (loss) due to gains (losses) arising before reclassifications | 16,405 | (14,337) | (12,947) |
Reclassifications to net income of previously deferred (gains) losses | 0 | 0 | 0 |
Net other comprehensive income (loss) | 16,405 | (14,337) | (12,947) |
Income taxes | 0 | 0 | 0 |
Ending balance | (91,057) | (107,462) | (93,125) |
Defined Benefit Pension Plans | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 2,243 | (2,177) | (1,889) |
Other comprehensive income (loss) due to gains (losses) arising before reclassifications | 1,077 | 8,438 | (399) |
Reclassifications to net income of previously deferred (gains) losses | (187) | (2,549) | 15 |
Net other comprehensive income (loss) | 890 | 5,889 | (384) |
Income taxes | (220) | (1,469) | 96 |
Ending balance | 2,913 | 2,243 | (2,177) |
Derivative Financial Instruments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 25,554 | 2,546 | (12,740) |
Other comprehensive income (loss) due to gains (losses) arising before reclassifications | 24,419 | 40,628 | 11,138 |
Reclassifications to net income of previously deferred (gains) losses | (33,829) | (12,422) | 8,835 |
Net other comprehensive income (loss) | (9,410) | 28,206 | 19,973 |
Income taxes | 4,149 | (5,198) | (4,687) |
Ending balance | $ 20,293 | $ 25,554 | $ 2,546 |
CAPITAL AND ACCUMULATED OTHER_6
CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE LOSS - Reclassification Out of AOCL (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Selling, general and administrative expenses | $ 768,568 | $ 777,703 | $ 824,747 |
Curtailments | 0 | 2,581 | 0 |
Total before tax | 271,899 | 319,136 | 244,600 |
Income taxes | (40,905) | (73,643) | (49,177) |
Net income | 230,994 | 245,493 | 195,423 |
Net revenues | 2,607,472 | 2,631,444 | 2,475,916 |
Cost of goods sold | 1,519,635 | 1,497,076 | 1,368,190 |
Other expense, net | (10,753) | (3,962) | (959) |
Interest expense | (40,408) | (34,919) | (38,900) |
Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net income | 30,428 | 13,410 | (6,123) |
Defined Benefit Pension Plans | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Selling, general and administrative expenses | 187 | (32) | (15) |
Curtailments | 0 | 2,581 | 0 |
Total before tax | 187 | 2,549 | (15) |
Income taxes | (47) | (637) | 3 |
Net income | 140 | 1,912 | (12) |
Derivative Financial Instruments | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Total before tax | 33,829 | 12,422 | (8,835) |
Income taxes | (3,541) | (924) | 2,724 |
Net income | 30,288 | 11,498 | (6,111) |
Derivative Financial Instruments | Reclassification out of Accumulated Other Comprehensive Income | Foreign currency exchange contracts | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net revenues | (219) | (1,093) | 204 |
Cost of goods sold | 23,588 | 13,531 | (2,271) |
Other expense, net | 527 | 245 | (749) |
Derivative Financial Instruments | Reclassification out of Accumulated Other Comprehensive Income | Interest rate swap agreements | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Interest expense | $ 9,933 | $ (261) | $ (6,019) |
STOCK-BASED COMPENSATION - Narr
STOCK-BASED COMPENSATION - Narrative (Details) - USD ($) | 12 Months Ended | |||||
Dec. 15, 2020 | May 23, 2019 | Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Maximum number of shares authorized (in shares) | 7,500,000 | |||||
Shares available for future grant (in shares) | 3,500,000 | |||||
Shares issued in period (in shares) | 2,400,000 | |||||
Stock-based compensation | $ 16,725,000 | $ 21,891,000 | $ 38,516,000 | |||
Total unrecognized compensation cost related to nonvested stock-based compensation | $ 16,600,000 | |||||
Period for recognition | 1 year 3 months 18 days | |||||
Shares paid for tax withholding for share based compensation (in shares) | 222,460 | |||||
Share based compensation vesting period | 3 years | |||||
Award expiration period from grant date | 10 years | |||||
Total fair value of stock option vested | 0 | |||||
Total intrinsic value of stock options exercised | $ 9,200,000 | 1,000,000 | ||||
Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Performance goal | 1 year | |||||
Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Performance goal | 3 years | |||||
Inventories | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation | $ 0 | $ 0 | 0 | |||
Nonperformance-based | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted (in USD per share) | $ 48.45 | $ 39.92 | ||||
Total market value of awards outstanding | $ 32,000,000 | |||||
Nonvested shares (in shares) | 513,335 | 518,466 | ||||
Nonperformance-based | Employees | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares of common stock to be issued for each restricted stock unit granted (in shares) | 1 | |||||
Share based compensation vesting period | 3 years | |||||
Nonperformance-based | Nonemployees | Director | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share based compensation vesting period | 1 year | |||||
Share payout (in shares) | 1 | |||||
Performance-based | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Performance period, years | 3 years | |||||
Percentage adjustment | 25% | |||||
Total shareholder return adjustment (in USD per share) | $ 6.59 | $ 4.03 | $ 5.73 | |||
Granted (in USD per share) | $ 47.50 | $ 40.79 | ||||
Total market value of awards outstanding | $ 48,600,000 | |||||
Nonvested shares (in shares) | 778,092 | 799,351 | ||||
Performance-based | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share payout (in shares) | 0 | |||||
Performance-based | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share payout (in shares) | 2 | |||||
Performance-based | Tranche Two | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Performance period, years | 3 years | |||||
Modified performance-based awards | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation | $ 1,200,000 | $ 4,100,000 | ||||
Plan modification, incremental cost | $ 8,800,000 | |||||
Restricted stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Market value of shares vested | $ 100,000 | |||||
Restricted stock | Management | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share based compensation vesting period | 5 years |
STOCK-BASED COMPENSATION - Tota
STOCK-BASED COMPENSATION - Total Stock-Based Compensation Cost and Associated Income Tax Benefits Recognized (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Share-Based Payment Arrangement [Abstract] | |||
Stock-based compensation expense | $ 16,725 | $ 21,891 | $ 38,516 |
Income tax benefits | $ 1,960 | $ 2,571 | $ 5,201 |
STOCK-BASED COMPENSATION - PRSU
STOCK-BASED COMPENSATION - PRSU and RSU Activity (Details) - $ / shares | 12 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Performance-based | ||
Number Outstanding | ||
Nonvested shares, beginning balance (in shares) | 799,351 | |
Granted (in shares) | 338,519 | |
Issued as Common Stock (in shares) | (337,084) | |
Forfeited/cancelled (in shares) | (22,694) | |
Nonvested shares, ending balance (in shares) | 778,092 | 799,351 |
Vested (in shares) | 257,200 | |
Weighted Average Grant Date Fair Value | ||
Nonvested shares, beginning balance (in USD per share) | $ 43 | |
Granted (in USD per share) | 47.50 | $ 40.79 |
Issued as Common Stock (in USD per share) | 45.60 | |
Forfeited/cancelled (in USD per share) | 43.80 | |
Nonvested shares, ending balance (in USD per share) | 43.80 | $ 43 |
Vested (in USD per share) | $ 46 | |
Nonperformance-based | ||
Number Outstanding | ||
Nonvested shares, beginning balance (in shares) | 518,466 | |
Granted (in shares) | 289,186 | |
Issued as Common Stock (in shares) | (275,857) | |
Forfeited/cancelled (in shares) | (18,460) | |
Nonvested shares, ending balance (in shares) | 513,335 | 518,466 |
Vested (in shares) | 20,838 | |
Weighted Average Grant Date Fair Value | ||
Nonvested shares, beginning balance (in USD per share) | $ 38.21 | |
Granted (in USD per share) | 48.45 | $ 39.92 |
Issued as Common Stock (in USD per share) | 34.49 | |
Forfeited/cancelled (in USD per share) | 44.66 | |
Nonvested shares, ending balance (in USD per share) | 45.75 | $ 38.21 |
Vested (in USD per share) | $ 0 |
STOCK-BASED COMPENSATION - Stoc
STOCK-BASED COMPENSATION - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Number of Shares | ||
Outstanding, beginning balance (in shares) | 1,212,908 | |
Exercised (in shares) | (391,687) | |
Outstanding, ending balance (in shares) | 821,221 | 1,212,908 |
Weighted Average Exercise Price | ||
Outstanding, beginning balance (in USD per share) | $ 26.70 | |
Exercised (in USD per share) | 26.78 | |
Outstanding, ending balance (in USD per share) | $ 26.66 | $ 26.70 |
Stock-based Compensation Additional Disclosures | ||
Number of Shares, Exercisable (in shares) | 821,221 | |
Weighted Average Exercise Price, Exercisable (in USD per share) | $ 26.66 | |
Options outstanding, remaining contractual term | 2 years 9 months 18 days | 3 years 8 months 12 days |
Options exercisable, remaining contractual term | 2 years 9 months 18 days | |
Options outstanding, intrinsic value | $ 29,368 | $ 16,121 |
Options exercisable, intrinsic value | $ 29,368 |
INCOME TAXES - Income Before In
INCOME TAXES - Income Before Income Taxes for Which the Provision for Income Taxes was Computed (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 128,026 | $ 153,936 | $ 118,142 |
Foreign | 143,873 | 165,200 | 126,458 |
Income before income taxes | $ 271,899 | $ 319,136 | $ 244,600 |
INCOME TAXES - Provision for In
INCOME TAXES - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Current: | |||
Federal | $ 26,290 | $ 53,990 | $ 24,514 |
Foreign | 16,950 | 12,397 | 15,877 |
State | 1,415 | 7,129 | 5,149 |
Total current income taxes | 44,655 | 73,516 | 45,540 |
Deferred: | |||
Federal and state | 6,848 | (9,828) | 2,951 |
Foreign | (10,598) | 9,955 | 686 |
Total deferred income taxes | (3,750) | 127 | 3,637 |
Total provision for income taxes | $ 40,905 | $ 73,643 | $ 49,177 |
INCOME TAXES - Differences Betw
INCOME TAXES - Differences Between Income Taxes Computed by Applying Statutory Federal Income Tax Rate and Income Tax Expense reported In Consolidated Financial Statements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Income Tax Disclosure [Abstract] | |||
Tax at federal statutory rate | $ 57,099 | $ 67,019 | $ 51,366 |
State income tax, net of federal tax benefit | 2,614 | 4,542 | 5,167 |
Foreign rate differences | (20,354) | (9,849) | (13,698) |
Employee compensation | 1,216 | 2,121 | 940 |
Change in valuation allowance | (5,089) | 4,881 | 2,010 |
Global intangible low-tax income ("GILTI") | 5,518 | 3,586 | 2,852 |
Other | (99) | 1,343 | 540 |
Total provision for income taxes | $ 40,905 | $ 73,643 | $ 49,177 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Operating Loss Carryforwards [Line Items] | |||
Tax expense (benefit), statutory exempt foreign income | $ (5,400) | $ (10,300) | $ (5,500) |
Income tax rate reconciliation, foreign, amount | 65,500 | ||
Undistributed earnings of foreign subsidiaries | 92,200 | ||
Change in indefinite reinvestment | 700 | ||
Tax credit carryforward | 65,500 | ||
Potential tax benefits for federal capital loss carryforwards, foreign operations | 22,800 | ||
State operating loss carry forwards | 8,200 | ||
Deferred tax assets, valuation allowance | 86,213 | 25,799 | |
Net unrecognized tax benefits including interest and penalties if recognized, would reduce the annual effective tax rate | 13,613 | $ 14,975 | |
Decrease in unrecognized tax benefits is reasonably possible | 2,100 | ||
Tax settlement | $ 0 | ||
Tax Credit Granted | |||
Operating Loss Carryforwards [Line Items] | |||
Increase (decrease) in valuation allowance | 65,500 | ||
Foreign Operating Losses | |||
Operating Loss Carryforwards [Line Items] | |||
Increase (decrease) in valuation allowance | (6,800) | ||
Foreign Operating Losses, Current Year | |||
Operating Loss Carryforwards [Line Items] | |||
Increase (decrease) in valuation allowance | 2,100 | ||
State Operating Loss and Credit Carryforwards | |||
Operating Loss Carryforwards [Line Items] | |||
Increase (decrease) in valuation allowance | (400) | ||
Foreign | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards, subject to expiration | 19,600 | ||
Tax credit carryforwards, subject to expiration | 3,500 | ||
Operating loss carry forwards valuation allowance | 11,900 | ||
Deferred tax assets, valuation allowance | 2,700 | ||
State | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards, subject to expiration | 6,700 | ||
Operating loss carry forwards valuation allowance | $ 6,100 |
INCOME TAXES - Deferred Income
INCOME TAXES - Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Deferred income tax assets: | ||
Inventories | $ 11,592 | $ 15,448 |
Deferred compensation | 10,290 | 10,454 |
Other employee benefits | 7,989 | 6,903 |
Stock-based compensation | 4,139 | 5,286 |
Other accrued expenses | 16,741 | 12,887 |
Intangible assets | 29,232 | 31,589 |
Leases | 12,055 | 11,161 |
Operating loss carryforwards | 30,871 | 25,817 |
Tax credit carryforwards | 69,221 | 2,645 |
Gross deferred income tax assets | 192,130 | 122,190 |
Less: valuation allowance | (86,213) | (25,799) |
Net deferred income tax assets | 105,917 | 96,391 |
Deferred income tax liabilities: | ||
Leases | 11,595 | 10,373 |
Depreciation | 20,929 | 22,152 |
Taxes on unremitted earnings | 3,923 | 3,503 |
Deferred income tax liabilities | 36,447 | 36,028 |
Total net deferred income tax assets | 69,470 | 60,363 |
Amounts included in the balance sheets: | ||
Deferred income tax assets | 75,081 | 67,282 |
Deferred income tax liabilities | $ (5,611) | $ (6,919) |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Change in Accrual for Unrecognized Income Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 18,420 | $ 16,766 | $ 16,757 |
Additions for current year tax positions | 248 | 169 | 154 |
Additions for prior year tax positions | 1,010 | 1,710 | 543 |
Reductions for prior year tax positions | (485) | (30) | (688) |
Reductions due to statute expirations | (2,545) | (195) | |
Ending balance | 16,648 | 18,420 | 16,766 |
Unrecognized Income Tax Benefits | |||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | 12,602 | 11,717 | 11,893 |
Additions for current year tax positions | 248 | 169 | 154 |
Additions for prior year tax positions | 79 | 853 | 18 |
Reductions for prior year tax positions | (345) | 0 | (348) |
Reductions due to statute expirations | (2,249) | (137) | |
Ending balance | 10,335 | 12,602 | 11,717 |
Accrued Interest and Penalties | |||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | 5,818 | 5,049 | 4,864 |
Additions for current year tax positions | 0 | 0 | 0 |
Additions for prior year tax positions | 931 | 857 | 525 |
Reductions for prior year tax positions | (140) | (30) | (340) |
Reductions due to statute expirations | (296) | (58) | |
Ending balance | $ 6,313 | $ 5,818 | $ 5,049 |
INCOME TAXES - Amounts Included
INCOME TAXES - Amounts Included in Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 |
Income Tax Disclosure [Abstract] | ||||
Unrecognized income tax benefits, including interest and penalties | $ 16,648 | $ 18,420 | $ 16,766 | $ 16,757 |
Less: deferred tax benefits | (3,035) | (3,445) | ||
Total unrecognized tax benefits | $ 13,613 | $ 14,975 |
EARNINGS PER SHARE - Schedule o
EARNINGS PER SHARE - Schedule of Earnings Per Share Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Earnings Per Share [Abstract] | |||
Net income | $ 230,994 | $ 245,493 | $ 195,423 |
Basic weighted average shares outstanding (in shares) | 55,961 | 55,744 | 57,394 |
Dilutive effect of stock-based awards (in shares) | 970 | 1,218 | 1,692 |
Diluted weighted average shares outstanding (in shares) | 56,931 | 56,962 | 59,086 |
Earnings per share: | |||
Basic earnings per share (in USD per share) | $ 4.13 | $ 4.40 | $ 3.40 |
Diluted earnings per share (in USD per share) | $ 4.06 | $ 4.31 | $ 3.31 |
EARNINGS PER SHARE - Narrative
EARNINGS PER SHARE - Narrative (Details) | 12 Months Ended | |||
May 22, 2019 | Dec. 30, 2023 shares | Dec. 31, 2022 shares | Jan. 01, 2022 shares | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Spinoff transaction, conversion ratio | 0.1429 | |||
Performance-based | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Stock options excluded from computation of earnings per share (in shares) | 600,000 | 300,000 | 200,000 | |
Stock Option | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Stock options excluded from computation of earnings per share (in shares) | 0 | 0 | 0 |
LEASES - Schedule of Supplement
LEASES - Schedule of Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Operating lease assets | $ 54,812 | $ 51,029 |
Liabilities | ||
Operating lease liabilities, current | 21,003 | 19,898 |
Operating lease liabilities, noncurrent | 36,753 | 31,506 |
Total lease liabilities | $ 57,756 | $ 51,404 |
Weighted-average remaining lease term (in years) | ||
Operating leases | 4 years 2 months 8 days | 3 years 11 months 26 days |
Weighted-average discount rate | ||
Operating leases | 5.67% | 4.39% |
LEASES - Schedule of Lease Cost
LEASES - Schedule of Lease Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Leases [Abstract] | |||
Operating lease costs | $ 31,543 | $ 26,634 | $ 30,394 |
Short-term lease costs (excluding leases of one month or less) | 603 | 279 | 272 |
Variable lease costs | 4,070 | 3,145 | 3,505 |
Total lease costs | 36,216 | 30,058 | 34,171 |
Cash paid for amounts included in the measurement of lease liabilities - operating cash flows | 31,457 | 29,977 | 37,474 |
Right-of-use operating lease assets obtained in exchange for new operating leases - non-cash activity | $ 14,964 | $ 17,684 | $ 4,323 |
LEASES - Schedule of Maturities
LEASES - Schedule of Maturities of Operating Leases (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
2024 | $ 23,353 | |
2025 | 15,923 | |
2026 | 8,372 | |
2027 | 6,334 | |
2028 | 3,556 | |
Thereafter | 7,010 | |
Total future minimum lease payments | 64,548 | |
Less: amounts related to imputed interest | (6,792) | |
Present value of future minimum lease payments | 57,756 | $ 51,404 |
Less: operating lease liabilities, current | (21,003) | (19,898) |
Operating lease liabilities, noncurrent | $ 36,753 | $ 31,506 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) $ in Millions | Dec. 30, 2023 USD ($) |
Leases [Abstract] | |
Lease not yet commenced | $ 0 |
COMMITMENTS - Narrative (Detail
COMMITMENTS - Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 30, 2023 USD ($) | |
Other Commitments [Line Items] | |
Future minimum royalty payments 2024 | $ 1 |
Future minimum royalty payments 2025 | 1 |
Future minimum royalty payments 2026 | 1 |
Future minimum royalty payments 2027 | 1 |
Future minimum royalty payments 2028 | 1 |
No future minimum royalty payments | 0 |
Total payments for purchase commitments 2024 | 492.5 |
Future payments under purchase commitments 2024 | 26 |
Future payments under purchase commitments 2025 | 7.9 |
Future payments under purchase commitments 2026 | 1.8 |
Future payments under purchase commitments 2027 | 0.8 |
Future payments under purchase commitments 2028 | 0.1 |
No future payments under purchase commitments | 0.1 |
Surety bonds, standby letters of credit and international bank guarantees | $ 29.9 |
Minimum | |
Other Commitments [Line Items] | |
Service period of purchase commitments | 1 month |
Maximum | |
Other Commitments [Line Items] | |
Service period of purchase commitments | 5 months |
RESTRUCTURING - Narrative (Deta
RESTRUCTURING - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 11,469 | $ 11,107 | $ 992 |
Net periodic benefit cost (credit), gain (loss) due to curtailment | 0 | 2,581 | $ 0 |
Restructuring reserve | 800 | 10,700 | |
Selling, general and administrative expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 5,700 | $ 13,700 | |
Cost of goods sold | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 5,800 |
RESTRUCTURING - Components of R
RESTRUCTURING - Components of Restructuring Charges (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Restructuring and Related Activities [Abstract] | |||
Severance and employee-related benefits | $ 7,223 | $ 13,688 | $ 992 |
Asset impairments | $ 3,064 | 0 | 0 |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Curtailment Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other expense, net | ||
Curtailments | $ 0 | (2,581) | 0 |
Other | 1,182 | 0 | 0 |
Total restructuring charges | $ 11,469 | $ 11,107 | $ 992 |
RESTRUCTURING - Restructuring b
RESTRUCTURING - Restructuring by Business Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 11,469 | $ 11,107 | $ 992 |
Operating Segments | Wrangler | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 4,564 | 0 | 305 |
Operating Segments | Lee | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 43 | 0 | 331 |
Corporate and other | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 6,862 | $ 11,107 | $ 356 |
RESTRUCTURING - Schedule of Act
RESTRUCTURING - Schedule of Activity in Restructuring Accrual (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Restructuring Reserve [Roll Forward] | ||
Accrual, beginning | $ 10,700 | |
Accrual, ending | 800 | $ 10,700 |
Severance | ||
Restructuring Reserve [Roll Forward] | ||
Accrual, beginning | 10,695 | 1,079 |
Charges | 7,223 | 13,688 |
Cash payments | (17,338) | (4,956) |
Adjustments to accruals | 6 | 166 |
Currency translation | 241 | 718 |
Accrual, ending | $ 827 | $ 10,695 |
SUBSEQUENT EVENT (Details)
SUBSEQUENT EVENT (Details) | Feb. 14, 2024 $ / shares |
Subsequent Event | Dividend Declared | |
Subsequent Event [Line Items] | |
Cash dividend (in USD per share) | $ 0.50 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Allowance for doubtful accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 9,918 | $ 11,705 | $ 19,143 |
Charged to Costs and Expenses | (807) | (44) | 330 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 1,896 | 1,743 | 7,768 |
Balance at End of Period | 7,215 | 9,918 | 11,705 |
Valuation allowance for deferred income tax assets | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 25,799 | 21,789 | 23,118 |
Charged to Costs and Expenses | (5,089) | 4,881 | 2,010 |
Charged to Other Accounts | 65,503 | (871) | (3,339) |
Deductions | 0 | 0 | 0 |
Balance at End of Period | $ 86,213 | $ 25,799 | $ 21,789 |