0001060822-21-000010 | 10-Q | XBRL Viewer

DOCUMENT AND ENTITY INFORMATION - shares	3 Months Ended
DOCUMENT AND ENTITY INFORMATION - shares	Apr. 03, 2021	Apr. 23, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Apr. 03, 2021
Document Transition Report	false
Entity File Number	001-31829
Entity Registrant Name	CARTER’S, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	13-3912933
Entity Address, Address Line One	Phipps Tower
Entity Address, Address Line Two	3438 Peachtree Road NE
Entity Address, Address Line Three	Suite 1800
Entity Address, City or Town	Atlanta
Entity Address, State or Province	GA
Entity Address, Postal Zip Code	30326
City Area Code	678
Local Phone Number	791-1000
Title of 12(b) Security	Common stock, par value $0.01 per share
Trading Symbol	CRI
Security Exchange Name	NYSE
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
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		43,956,877
Entity Central Index Key	0001060822
Current Fiscal Year End Date	--01-01
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Apr. 03, 2021	Jan. 02, 2021	Mar. 28, 2020
Current assets:
Cash and cash equivalents, end of period	$ 1,053,690	$ 1,102,323	$ 759,100
Accounts receivable, net	240,212	186,512	221,884
Inventory, Net	560,683	599,262	565,932
Prepaid expenses and other current assets	63,290	57,927	43,349
Total current assets	1,917,875	1,946,024	1,590,265
Property, Plant and Equipment, Net	248,799	262,345	303,919
Operating lease assets	559,391	593,008	673,301
Tradenames, net	307,830	307,893	308,080
Goodwill	212,271	211,776	207,720
Customer relationships, net	36,596	37,510	39,785
Other assets	27,711	34,024	30,435
Total assets	3,310,473	3,392,580	3,153,505
Current liabilities:
Accounts payable	334,831	472,140	187,199
Current operating lease liabilities	172,117	185,152	161,341
Other current liabilities	149,911	135,240	79,135
Total current liabilities	656,859	792,532	427,675
Long-term debt, net	989,980	989,530	1,238,822
Deferred income taxes	56,990	52,770	65,260
Long-term operating lease liabilities	517,875	554,497	647,334
Other long-term liabilities	59,160	65,218	58,412
Total liabilities	2,280,864	2,454,547	2,437,503
Commitments and contingencies - Note 14
Stockholders’ equity:
Preferred stock; par value $0.01 per share;100,000 shares authorized; none issued or outstanding at April 3, 2021, January 2, 2021, and March 28, 2020	0	0	0
Common stock, voting; par value $0.01 per share; 150,000,000 shares authorized; 43,947,659, 43,780,075 and 43,610,725 shares issued and outstanding at April 3, 2021, January 2, 2021, and March 28, 2020, respectively	440	438	436
Additional paid-in capital	21,904	17,752	0
Accumulated other comprehensive loss	(31,534)	(32,760)	(48,626)
Retained earnings	1,038,799	952,603	764,192
Stockholders' Equity Attributable to Parent, Total	1,029,609	938,033	716,002
Liabilities and Equity, Total	$ 3,310,473	$ 3,392,580	$ 3,153,505

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Apr. 03, 2021	Jan. 02, 2021	Mar. 28, 2020
Statement of Financial Position [Abstract]
Allowance for credit losses	$ 6,695	$ 5,940	$ 10,620
Inventory valuation reserves	15,581	14,206	35,597
Accumulated depreciation of property, plant, and equipment	$ 557,608	$ 583,980	$ 542,158
Preferred stock par value (in USD per share)	$ 0.01
Preferred stock shares authorized (in shares)	100,000
Preferred stock shares issued and outstanding (in shares)	0
Common stock par value (in USD per share)	$ 0.01
Common stock shares authorized (in shares)	150,000,000
Common stock shares issued and outstanding (in shares)	43,947,659	43,780,075	43,610,725

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended
	Apr. 03, 2021	Mar. 28, 2020
Net sales	$ 787,361	$ 654,473
Cost of goods sold	401,731	403,373
Adverse purchase commitments (inventory and raw materials), net	(6,330)	22,837
Gross profit	391,960	228,263
Selling, general, and administrative expenses	271,927	269,837
Goodwill impairment	0	17,742
Intangible asset impairment	0	26,500
Operating income (loss)	127,496	(78,478)
Interest expense	15,348	8,864
Interest income	(225)	(464)
Other (income) expense, net	(917)	4,818
Income (loss) before income taxes	113,290	(91,696)
Income tax provision (benefit)	27,094	(13,002)
Net income (loss)	$ 86,196	$ (78,694)
Basic net income (loss) per common share (in USD per share)	$ 1.96	$ (1.82)
Diluted net income (loss) per common share (in USD per share)	1.96	(1.82)
Dividend declared and paid per common share (in USD per share)	$ 0	$ 0.60
Royalty
Net sales	$ 7,463	$ 7,338

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended
	Apr. 03, 2021	Mar. 28, 2020
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 86,196	$ (78,694)
Other comprehensive income (loss):
Foreign currency translation adjustments	1,226	(12,992)
Comprehensive income (loss)	$ 87,422	$ (91,686)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1A
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121641772&loc=SL7669619-108580

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(22))
-URI http://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721683-107760

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22595-107794

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1B
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121641772&loc=SL7669625-108580

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 11: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(18))
-URI http://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Reference 12: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(20))
-URI http://asc.fasb.org/extlink&oid=120395209&loc=SL114868664-224227

Reference 13: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=121586364&loc=d3e3602-108585

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22499-107794

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22663-107794

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=75031198&loc=d3e14064-108612

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22583-107794

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121326447&loc=SL5780133-109256

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571

Reference 22: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22658-107794

+ Details

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional paid-in capital	Accumulated other comprehensive loss	Retained earnings
Balance at beginning of period (in shares) at Dec. 28, 2019		43,963,103
Balance at beginning of period at Dec. 28, 2019	$ 880,130	$ 440	$ 0	$ (35,634)	$ 915,324
Exercise of stock options (in shares)		33,158
Exercise of stock options	1,840	$ 0	1,840	0	0
Withholdings from vesting of restricted stock (in shares)		(43,611)
Withholdings from vesting of restricted stock	(4,712)	$ 0	(4,712)	0	0
Restricted stock activity (in shares)		132,759
Restricted stock activity	0	$ 1	(1)	0	0
Stock-based compensation expense	1,945	$ 0	1,945	0	0
Repurchase of common stock (in shares)		(474,684)
Repurchase of common stock	(45,255)	$ (5)	928	0	(46,178)
Cash dividends declared and paid	(26,260)	0	0	0	(26,260)
Comprehensive loss	(91,686)	$ 0	0	(12,992)
Net income (loss)	$ (78,694)				(78,694)
Balance at end of period (in shares) at Mar. 28, 2020	43,610,725	43,610,725
Balance at end of period at Mar. 28, 2020	$ 716,002	$ 436	0	(48,626)	764,192
Balance at beginning of period (in shares) at Jan. 02, 2021	43,780,075	43,780,075
Balance at beginning of period at Jan. 02, 2021	$ 938,033	$ 438	17,752	(32,760)	952,603
Exercise of stock options (in shares)		12,065
Exercise of stock options	811	$ 0	811	0	0
Withholdings from vesting of restricted stock (in shares)		(37,444)
Withholdings from vesting of restricted stock	(3,588)	$ 0	(3,588)	0	0
Restricted stock activity (in shares)		192,963
Restricted stock activity	0	$ 2	(2)	0	0
Stock-based compensation expense	6,931	0	6,931	0	0
Comprehensive loss	87,422	$ 0	0	1,226
Net income (loss)	$ 86,196				86,196
Balance at end of period (in shares) at Apr. 03, 2021	43,947,659	43,947,659
Balance at end of period at Apr. 03, 2021	$ 1,029,609	$ 440	$ 21,904	$ (31,534)	$ 1,038,799

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Apr. 03, 2021	Mar. 28, 2020
Statement of Cash Flows [Abstract]
Net income (loss)	$ 86,196	$ (78,694)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation of property, plant, and equipment	23,183	22,433
Amortization of intangible assets	932	935
Provisions for excess and obsolete inventory, net	1,364	26,596
Goodwill impairment	0	17,742
Intangible asset impairment	0	26,500
Other asset impairments and (gain) loss on disposal of property, plant and equipment, net of recoveries	(25)	2,050
Amortization of debt issuance costs	738	353
Stock-based compensation expense	6,931	1,945
Unrealized foreign currency exchange loss, net	49	3,856
Provisions for doubtful accounts receivable from customers	766	4,270
Deferred income tax (benefit)	4,365	(10,053)
Effect of changes in operating assets and liabilities:
Accounts receivable	54,484	(22,926)
Finished goods inventories	37,812	(5,634)
Prepaid expenses and other assets	(5,186)	7,254
Accounts payable and other liabilities	(142,171)	(56,781)
Net cash used in operating activities	(39,530)	(14,302)
Cash flows from investing activities:
Capital expenditures	11,665	8,068
Proceeds from sale of investments	5,000	0
Net cash used in investing activities	(6,665)	(8,068)
Cash flows from financing activities:
Borrowings under secured revolving credit facility	0	644,000
Repurchases of common stock	0	(45,255)
Dividends paid	0	(26,260)
Withholdings from vesting of restricted stock	(3,588)	(4,712)
Proceeds from exercises of stock options	811	1,840
Net cash (used in) provided by financing activities	(2,777)	569,613
Net effect of exchange rate changes on cash and cash equivalents	339	(2,454)
Net (decrease) increase in cash and cash equivalents	(48,633)	544,789
Cash and Cash Equivalents, at Carrying Value, Beginning Balance	1,102,323	214,311
Cash and Cash Equivalents, at Carrying Value, Ending Balance	$ 1,053,690	$ 759,100

THE COMPANY	3 Months Ended
THE COMPANY	Apr. 03, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
THE COMPANY	THE COMPANYCarter’s, Inc. and its wholly owned subsidiaries (collectively, the “Company”) design, source, and market branded childrenswear under the Carter’s, OshKosh, Skip Hop, Child of Mine, Just One You, Simple Joys, Carter’s little baby basics, little planet, and other brands. The Company’s products are sourced through contractual arrangements with manufacturers worldwide for: 1) wholesale distribution to leading department stores, national chains, and specialty retailers domestically and internationally and 2) distribution to the Company’s own retail stores and eCommerce sites that market its brand name merchandise and other licensed products manufactured by other companies.

BASIS OF PRESENTATION	3 Months Ended
BASIS OF PRESENTATION	Apr. 03, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF PRESENTATION	BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission (the “SEC”). All intercompany transactions and balances have been eliminated in consolidation. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all normal and recurring adjustments necessary to state fairly the consolidated financial condition, results of operations, comprehensive income (loss), statement of stockholders’ equity, and cash flows of the Company for the interim periods presented. Except as otherwise disclosed, all such adjustments consist only of those of a normal recurring nature. Operating results for the fiscal quarter ended April 3, 2021 are not necessarily indicative of the results that may be expected for the current fiscal year ending January 1, 2022. The preparation of these unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ materially from those estimates. The accompanying condensed consolidated balance sheet as of January 2, 2021 was derived from the Company’s audited consolidated financial statements included in its most recently filed Annual Report on Form 10-K. Certain information and footnote disclosure normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC and the instructions to Form 10-Q. Revision of Previously Issued Financial Statements During the second quarter of fiscal year 2020, it was determined that there were amounts presented incorrectly in the statement of cash flows for the annual and interim year to date periods subsequent to the December 30, 2018 adoption of ASC 842, Leases, due to the presentation of the non-cash impact of the initial and subsequent recognition of the Right of Use (“ROU”) assets and lease liabilities within the “Prepaid expenses and other assets” and “Accounts payable and other liabilities” line items, respectively, within operating cash flows. This incorrect presentation had no impact on net cash (used in) provided by operating activities for any of the periods. We assessed the materiality of the incorrect presentation and concluded that the previously issued financial statements were not materially misstated. The presentation errors resulted in an offsetting overstatement of cash used for prepaid expenses and other assets and cash provided by accounts payable and other liabilities of $29 million for the three months ended March 28, 2020. The accompanying consolidated statement of cash flows appropriately reflect the corrected presentation of these non-cash activities. In addition, the Company has reclassified prior comparable period amounts to present ROU asset amortization and lease liability payment activity on a net basis within the “Accounts payable and other liabilities” line item. The revisions to the three months ended March 31, 2020 have been presented in this Form 10-Q. We will continue to provide supplemental noncash cash flow disclosure information in the notes to the financial statements. COVID-19 The Company is closely monitoring the effects of the ongoing coronavirus (“COVID-19”) pandemic and its impact on our business. Additionally, the Company assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to us and the unknown future impacts of COVID-19 as of April 3, 2021 and through the date of this report filing. The accounting matters assessed included, but were not limited to, our allowance for credit losses, inventory reserves, adverse inventory and fabric purchase commitments, stock based compensation, and the carrying value of our goodwill and other long-lived assets. Based on these assessments, in the first quarter of fiscal 2021, the Company recorded a benefit in fabric purchase commitment charges of $6.3 million related to better than expected sales of inventory and utilization of fabric that were reserved for in the first quarter of fiscal 2020 due to COVID-19 related disruptions. As of April 3, 2021, the Company had an outstanding reserve of $6.3 million for adverse inventory and fabric purchase commitments. Additional COVID-19 related charges in the first quarter of fiscal 2021 were $2.1 million and were primarily related to the costs associated with additional protective equipment and cleaning supplies. Accounting Policies The accounting policies the Company follows are set forth in its most recently filed Annual Report on Form 10-K. There have been no material changes to these accounting policies.

REVENUE RECOGNITION

3 Months Ended

Apr. 03, 2021

Revenue from Contract with Customer [Abstract]

REVENUE RECOGNITION

The Company’s revenues are earned from contracts or arrangements with retail and wholesale customers and licensees. Contracts include written agreements as well as arrangements that are implied by customary practices or law.

Disaggregation of Revenue

The Company sells its products directly to consumers (“direct-to-consumer”) and to other retail companies and partners that subsequently sell the products directly to their own retail customers. The Company also earns royalties from certain of its licensees. Disaggregated revenues from these sources for the first quarter of fiscal 2021 and 2020 were as follows:


	Fiscal quarter ended April 3, 2021
(dollars in thousands)	U.S. Retail		U.S. Wholesale		International		Total
Wholesale channel	$	—	$	283,377	$	42,792	$	326,169
Direct-to-consumer	407,067		—		54,125		461,192

	$	407,067	$	283,377	$	96,917	$	787,361

Royalty income	$	3,070	$	3,775	$	618	$	7,463


	Fiscal quarter ended March 28, 2020
(dollars in thousands)	U.S. Retail		U.S. Wholesale		International		Total
Wholesale channel	$	—	$	252,130	$	38,730	$	290,860
Direct-to-consumer	320,717		—		42,896		363,613

	$	320,717	$	252,130	$	81,626	$	654,473

Royalty income	$	2,494	$	4,083	$	761	$	7,338

Accounts Receivable from Customers and Licensees

The components of Accounts receivable, net, were as follows:


(dollars in thousands)	April 3, 2021		January 2, 2021		March 28, 2020
Trade receivables from wholesale customers, net(1)	$	234,643	$	180,830	$	219,140
Royalties receivable	7,090		5,733		6,428
Tenant allowances and other receivables	11,664		12,315		11,968
Total gross receivables	$	253,397	$	198,878	$	237,536
Less: Wholesale accounts receivable reserves(1)(2)	(13,185)		(12,366)		(15,652)
Accounts receivable, net	$	240,212	$	186,512	$	221,884

(1)The Company reclassified $2.0 million of customer support related items from Wholesale accounts receivable reserves into Trade receivables from wholesale customers, net for the period ended March 28, 2020.

(2)Includes allowance for credit losses of $6.7 million, $5.9 million, and $10.6 million for the periods ended April 3, 2021, January 2, 2021, and March 28, 2020, respectively.

Contract Assets and Liabilities

The Company’s contract assets are not material.

Contract Liabilities

The Company recognizes a contract liability when it has received consideration from a customer and has a future obligation to transfer goods to the customer. Total contract liabilities consisted of the following amounts:


(dollars in thousands)	April 3, 2021		January 2, 2021		March 28, 2020
Contract liabilities - current:
Unredeemed gift cards	$	17,426	$	18,300	$	16,758
Unredeemed customer loyalty rewards	5,893		5,241		4,503
Carter’s credit card - upfront bonus(1)	714		714		714
Total contract liabilities - current(2)	$	24,033	$	24,255	$	21,975

Contract liabilities - non-current	$	2,679	$	2,857	$	3,393
Total contract liabilities	$	26,712	$	27,112	$	25,368

(1)Carter’s credit card - upfront bonus - the Company received an upfront signing bonus from a third-party financial institution, which will be recognized as revenue on a straight-line basis over the term of the agreement. This amount reflects the current portion of this bonus to be recognized as revenue over the next twelve months.

(2)Included with Other current liabilities on the Company's consolidated balance sheet.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

+ Details

LEASES

3 Months Ended

Apr. 03, 2021

Leases [Abstract]

LEASES

The Company has operating leases for retail stores, distribution centers, corporate offices, data centers, and certain equipment. The Company’s leases generally have initial terms ranging from 1 year to 10 years, some of which may include options to extend the leases for up to 5 years, and some of which may include options to early terminate the lease.

As of April 3, 2021, the Company’s finance leases were not material to the consolidated balance sheets, consolidated statements of operations, or statements of cash flows.

The following components of lease expense are included in Selling, general and administrative expenses on the Company’s consolidated statements of operations for the first quarter of fiscal 2021 and 2020:


	Fiscal quarter ended
(dollars in thousands)	April 3, 2021		March 28, 2020
Operating lease cost	$	42,698	$	46,423




Variable lease cost(*)	16,398		16,285
Net lease cost	$	59,096	$	62,708

(*)Includes short-term leases, which are not material.

Supplemental balance sheet information related to leases was as follows:


	Fiscal quarter ended
	April 3, 2021	March 28, 2020
Weighted average remaining operating lease term (years)	5.3	5.9
Weighted average discount rate for operating leases	3.29%	4.29%

Cash paid for amounts included in the measurement of operating lease liabilities in the first quarter of fiscal 2021 and 2020 were $57.9 million and $50.2 million, respectively.

Non-cash transactions to recognize operating assets and liabilities for new leases in the first quarter of fiscal 2021 and 2020 were $3.3 million and $29.4 million, respectively.

As of April 3, 2021, the maturities of lease liabilities were as follows:


(dollars in thousands)	Operating leases
Remainder of 2021	$	149,606
2022	159,141
2023	130,852
2024	104,942
2025	76,530
2026	54,094
After 2026	77,693
Total lease payments	$	752,858
Less: Interest	(62,866)
Present value of lease liabilities(*)	$	689,992

(*)As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date to determine the present value of lease payments. We used the incremental borrowing rate on December 30, 2018, for operating leases that commenced prior to that date.

As of April 3, 2021, the minimum rental commitments for additional operating lease contracts that have not yet commenced, primarily for retail stores, are $6.9 million. These operating leases will commence between fiscal year 2021 and fiscal year 2023 with lease terms of 7 years to 9 years.

ACUMULATED OTHER COMPREHENSIVE LOSS

3 Months Ended

Apr. 03, 2021

Text Block [Abstract]

ACUMULATED OTHER COMPREHENSIVE LOSS

ACCUMULATED OTHER COMPREHENSIVE LOSS

The components of Accumulated other comprehensive loss consisted of the following:


(dollars in thousands)	April 3, 2021		January 2, 2021		March 28, 2020
Cumulative foreign currency translation adjustments	$	(20,081)	$	(21,307)	$	(39,514)
Pension and post-retirement obligations(*)	(11,453)		(11,453)		(9,112)
Total accumulated other comprehensive loss	$	(31,534)	$	(32,760)	$	(48,626)

(*)Net of income taxes of $3.5 million, $3.5 million, and $2.8 million, for the periods ended April 3, 2021, January 2, 2021, and March 28, 2020, respectively.

During the first quarter of both fiscal 2021 and fiscal 2020, no amounts were reclassified from Accumulated other comprehensive loss to the statement of operations.

GOODWILL AND INTANGIBLE ASSETS

3 Months Ended

Apr. 03, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

The balances and changes in the carrying amount of goodwill attributable to each segment were as follows:


(dollars in thousands)	U.S. Retail		U.S. Wholesale		International		Total
Balance at December 28, 2019	$	83,934	$	74,454	$	70,638	$	229,026


Goodwill impairment(1)	—		—		(17,742)		(17,742)
Foreign currency impact	—		—		(3,564)		(3,564)
Balance at March 28, 2020(2)	$	83,934	$	74,454	$	49,332	$	207,720


Balance at January 2, 2021(2)	$	83,934	$	74,454	$	53,388	$	211,776



Foreign currency impact	—		—		495		495
Balance at April 3, 2021(2)	$	83,934	$	74,454	$	53,883	$	212,271

(1)In the first quarter of fiscal 2020, a charge of $17.7 million was recorded to reflect the impairment of the value ascribed to the goodwill in the Other International reporting unit in the International segment.

(2)Goodwill balance for the International reporting unit is net of accumulated impairment losses of $17.7 million.

A summary of the carrying value of the Company’s intangible assets were as follows:


		April 3, 2021						January 2, 2021
(dollars in thousands)	Weighted-average useful life	Gross amount		Accumulated amortization		Net amount		Gross amount		Accumulated amortization		Net amount
Carter’s tradename	Indefinite	$	220,233	$	—	$	220,233	$	220,233	$	—	$	220,233
OshKosh tradename	Indefinite	70,000		—		70,000		70,000		—		70,000
Skip Hop tradename	Indefinite	15,000		—		15,000		15,000		—		15,000
Finite-life tradenames	5 -20 years	3,911		1,314		2,597		3,911		1,251		2,660

Total tradenames, net		$	309,144	$	1,314	$	307,830	$	309,144	$	1,251	$	307,893

Skip Hop customer relationships	15 years	$	47,300	$	12,628	$	34,672	$	47,300	$	11,834	$	35,466
Carter’s Mexico customer relationships	10 years	3,063		1,139		1,924		3,108		1,064		2,044
Total customer relationships, net		$	50,363	$	13,767	$	36,596	$	50,408	$	12,898	$	37,510


		March 28, 2020
(dollars in thousands)	Weighted-average useful life	Gross amount		Accumulated amortization		Net amount
Carter’s tradename	Indefinite	$	220,233	$	—	$	220,233
OshKosh tradename(1)	Indefinite	70,000		—		70,000
Skip Hop tradename(2)	Indefinite	15,000		—		15,000
Finite-life tradenames	5 - 20 years	3,911		1,064		2,847
Total tradenames, net		$	309,144	$	1,064	$	308,080

Skip Hop customer relationships	15 years	$	47,300	$	9,451	$	37,849
Carter’s Mexico customer relationships	10 years	2,790		854		1,936
Total customer relationships, net		$	50,090	$	10,305	$	39,785

(1)In the first quarter of fiscal 2020, a charge of $13.6 million, $1.6 million, and $0.3 million was recorded on our indefinite-lived OshKosh tradename asset in the U.S. Retail, U.S. Wholesale, and International segments, respectively, to reflect the impairment of the value ascribed to the indefinite-lived OshKosh tradename asset.

(2)In the first quarter of fiscal 2020, a charge of $6.8 million, $3.7 million, and $0.5 million was recorded on our indefinite-lived Skip Hop tradename asset in the U.S. Wholesale, International, and U.S. Retail segments, respectively, to reflect the impairment of the value ascribed to the indefinite-lived Skip Hop tradename asset.

Amortization expense for intangible assets subject to amortization was approximately $0.9 million for both first fiscal quarters ended April 3, 2021 and March 28, 2020.

The estimated amortization expense for the next five fiscal years is as follows:


(dollars in thousands)	Amortization expense
Remainder of 2021	$	2,797
2022	$	3,730
2023	$	3,688
2024	$	3,658
2025	$	3,658
2026	$	3,658

COMMON STOCK

3 Months Ended

Apr. 03, 2021

Equity [Abstract]

COMMON STOCK

Open Market Share Repurchases

The Company repurchased and retired shares in open market transactions in the following amounts for the fiscal periods indicated:


	Fiscal quarter ended
	April 3, 2021		March 28, 2020
Number of shares repurchased	—		474,684
Aggregate cost of shares repurchased (dollars in thousands)	$	—	$	45,255
Average price per share	$	—	$	95.34

The total aggregate remaining capacity under outstanding repurchase authorizations as of April 3, 2021 was approximately $650.4 million, based on settled repurchase transactions. The share repurchase authorizations have no expiration date.

As previously announced, the Company, in connection with the COVID-19 pandemic, suspended its common stock share repurchase program at the end of the first quarter in fiscal 2020. While the Company may elect to resume purchases at any time, the timing and amount of any future repurchases will be determined by the Company based on its evaluation of market conditions, share price, other investment priorities, and other factors.

Dividends

On May 1, 2020, in connection with the COVID-19 pandemic, the Company suspended its quarterly cash dividend. As a result, the Company did not declare or pay cash dividends for the first quarter of fiscal 2021. In the first fiscal quarter ended March 28, 2020, the Company declared and paid cash dividends per share of $0.60.

On April 27, 2021, in connection with the announcement of the amendment on the Company’s revolving credit facility, the Company’s Board of Directors authorized a quarterly cash dividend payment of $0.40 per common share, payable on May 28, 2021, to shareholders of record at the close of business on May 12, 2021. The Board of Directors will evaluate future dividend declarations based on a number of factors, including restrictions under the Company’s revolving credit facility, business conditions, the Company’s financial performance, and other considerations.

Provisions in the Company’s secured revolving credit facility could have the effect of restricting the Company’s ability to pay cash dividends on, or make future repurchases of, its common stock, as further described in Note 8, Long-term Debt, to the consolidated financial statements.

LONG-TERM DEBT

3 Months Ended

Apr. 03, 2021

Debt Disclosure [Abstract]

LONG-TERM DEBT

Long-term debt consisted of the following:


(dollars in thousands)	April 3, 2021		January 2, 2021		March 28, 2020
$500 million 5.500% Senior Notes due May 15, 2025	$	500,000	$	500,000	$	—
$500 million 5.625% Senior Notes due March 15, 2027	500,000		500,000		500,000
Total senior notes	$	1,000,000	$	1,000,000	$	500,000
Less unamortized issuance-related costs for senior notes	(10,020)		(10,470)		(5,178)
Senior notes, net	$	989,980	$	989,530	$	494,822
Secured revolving credit facility	—		—		744,000
Total long-term debt, net	$	989,980	$	989,530	$	1,238,822

Secured Revolving Credit Facility

As of April 3, 2021, the Company had no outstanding borrowings under its secured revolving credit facility, exclusive of $5.0 million of outstanding letters of credit. As of April 3, 2021, approximately $745.0 million remained available for future borrowing. All outstanding borrowings under the Company’s secured revolving credit facility are classified as non-current liabilities on the Company’s consolidated balance sheet because of the contractual repayment terms under the credit facility.

As of April 3, 2021, the interest rate margins applicable to the secured revolving credit facility were 1.625% for LIBOR (London Interbank Offered Rate) rate loans and 0.625% for base rate loans.

In the first quarter of fiscal 2021, there were no changes in our financial and other covenants under the secured revolving credit facility as described in our Form 10-K for the 2020 fiscal year ended January 2, 2021.

As of April 3, 2021, the Company was in compliance with its financial and other covenants under the secured revolving credit facility.

On April 21, 2021, the Company, through its wholly owned subsidiary, The William Carter Company (“TWCC”), entered into Amendment No. 3 to its fourth amended and restated credit agreement (“Amendment No. 3”). Among other things, Amendment No. 3 provides that through the remainder of the Restricted Period, which ends on the date the Company delivers its financial statements and associated certificates relating to the third fiscal quarter of 2021:

•the Company must maintain a minimum liquidity (defined as cash-on-hand plus availability under the secured revolving credit facility) on the last day of each fiscal month of at least $950 million (the “Revised Liquidity Requirement”), which was increased by $250 million from $700 million; and

•the Company may make additional restricted payments, including to pay cash dividends and repurchase common stock, in an amount not to exceed $250 million, provided that (a) no default or event of default will have occurred and be continuing or would result from the payment and (b) after giving effect to the payment, the Company would have been in compliance with Revised Liquidity Requirement as of the last day of the most recent month.

STOCK-BASED COMPENSATION

3 Months Ended

Apr. 03, 2021

Share-based Payment Arrangement [Abstract]

STOCK-BASED COMPENSATION

The Company recorded stock-based compensation expense as follows:


	Fiscal quarter ended
(dollars in thousands)	April 3, 2021		March 28, 2020
Stock options	$	474	$	883
Restricted stock:
Time-based awards	3,900		2,989
Performance-based awards	2,557		(1,927)

Total	$	6,931	$	1,945

On February 10, 2021, the Company’s Board of Directors approved the issuance of the following new awards to certain key employees under the Company’s existing stock-based compensation plan, subject to vesting: 301,584 shares of time-based restricted stock awards with a grant-date fair value of $98.05 each.

During the first quarter of fiscal 2021, a total of 94,589 restricted stock awards (time-based) vested.

The Company recognizes compensation cost ratably over the applicable performance periods based on the estimated probability of achievement of its performance targets at the end of each period. During the first quarter of 2021, the achievement of performance target estimates related to certain performance-based grants were revised resulting in a $2.6 million increase to stock-based compensation expense.

INCOME TAXES	3 Months Ended
INCOME TAXES	Apr. 03, 2021
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES As of April 3, 2021, the Company had gross unrecognized income tax benefits of approximately $15.6 million, of which $11.0 million, if ultimately recognized, may affect the Company’s effective income tax rate in the periods settled. The Company has recorded tax positions for which the ultimate deductibility is more likely than not, but for which there is uncertainty about the timing of such deductions. Included in the reserves for unrecognized tax benefits at April 3, 2021 is approximately $2.1 million of reserves for which the statute of limitations is expected to expire within the next 12 months. If these tax benefits are ultimately recognized, such recognition, net of federal income taxes, may affect the annual effective income tax rate for fiscal 2021 or fiscal 2022 along with the effective income tax rate in the quarter in which the benefits are recognized. The Company recognizes interest related to unrecognized tax benefits as a component of interest expense and recognizes penalties related to unrecognized income tax benefits as a component of income tax expense. During the first fiscal quarter ended April 3, 2021 and March 28, 2020, interest expense on uncertain tax positions was not material. The Company had approximately $2.9 million, $2.7 million, and $2.5 million of interest accrued on uncertain tax positions as of April 3, 2021, January 2, 2021, and March 28, 2020, respectively.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

FAIR VALUE MEASUREMENTS	3 Months Ended
FAIR VALUE MEASUREMENTS	Apr. 03, 2021
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	FAIR VALUE MEASUREMENTS Investments The Company invests in marketable securities, principally equity-based mutual funds, to mitigate the risk associated with the investment return on employee deferrals of compensation. All of the marketable securities are included in Other assets on the accompanying consolidated balance sheets, and their aggregate fair values were approximately $15.4 million, $20.2 million, and $16.7 million at April 3, 2021, January 2, 2021, and March 28, 2020, respectively. These investments are classified as Level 1 within the fair value hierarchy. The change in the aggregate fair values of marketable securities are due to the net activity of gains and losses and any contributions and distributions during the period. Gains on the investments in marketable securities were not material for the first fiscal quarter ended April 3, 2021. Loss on the investments in marketable securities were $3.0 million for the first fiscal quarter ended March 28, 2020. These amounts are included in Other expense (income), net on the Company’s consolidated statement of operations. Borrowings As of April 3, 2021, the Company had no outstanding borrowings under its secured revolving credit facility. The fair value of the Company’s senior notes at April 3, 2021 was approximately $1.06 billion. The fair value of these senior notes with a notional value and carrying value (gross of debt issuance costs) of $1.00 billion was estimated using a quoted price as provided in the secondary market, which considers the Company’s credit risk and market related conditions, and is therefore within Level 2 of the fair value hierarchy.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

EARNINGS PER SHARE

3 Months Ended

Apr. 03, 2021

Earnings Per Share [Abstract]

EARNINGS PER SHARE

The following is a reconciliation of basic common shares outstanding to diluted common and common equivalent shares outstanding:


	Fiscal quarter ended
	April 3, 2021		March 28, 2020
Weighted-average number of common and common equivalent shares outstanding:
Basic number of common shares outstanding	43,370,744		43,355,635
Dilutive effect of equity awards(1)	129,198		—
Diluted number of common and common equivalent shares outstanding	43,499,942		43,355,635

Earnings per share:
(dollars in thousands, except per share data)
Basic net income (loss) per common share:
Net income (loss)	$	86,196	$	(78,694)
Income allocated to participating securities	(1,033)		(254)
Net income (loss) available to common shareholders	$	85,163	$	(78,948)

Basic net income (loss) per common share	$	1.96	$	(1.82)

Diluted net income (loss) per common share:
Net income (loss)	$	86,196	$	(78,694)
Income allocated to participating securities	(1,030)		(254)
Net income (loss) available to common shareholders	$	85,166	$	(78,948)

Diluted net income (loss) per common share	$	1.96	$	(1.82)

Anti-dilutive awards excluded from diluted earnings per share computation(2)	481,491		302,238

(1)For the quarter ended March 28, 2020, there were 339,841 potentially dilutive equity awards that were excluded from the diluted earnings per share calculation because the Company incurred a net loss for this period and their inclusion would be anti-dilutive.

(2)The volume of anti-dilutive awards is, in part, due to the related unamortized compensation costs.

OTHER CURRENT LIABILITIES

3 Months Ended

Apr. 03, 2021

Accrued Liabilities, Current [Abstract]

OTHER CURRENT LIABILITIES

Other current liabilities at the end of any comparable period, were as follows:


(dollars in thousands)	April 3, 2021		January 2, 2021		March 28, 2020
Income taxes payable	$	40,143	$	21,164	$	7,665
Unredeemed gift cards	17,426		18,300		16,758
Accrued employee benefits	17,307		22,876		9,908
Accrued taxes	16,054		10,900		7,378
Accrued interest	11,987		12,092		1,605
Accrued bonuses and incentive compensation	10,222		8,873		24
Accrued salaries and wages	4,773		10,650		11,911
Other	31,999		30,385		23,886
Other current liabilities	$	149,911	$	135,240	$	79,135

COMMITMENT AND CONTINGENCIES	3 Months Ended
COMMITMENT AND CONTINGENCIES	Apr. 03, 2021
Commitments and Contingencies Disclosure [Abstract]
COMMITMENT AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES The Company is subject to various claims and pending or threatened lawsuits in the normal course of business. The Company is not currently a party to any legal proceedings that it believes would have a material adverse impact on its financial position, results of operations, or cash flows. The Company's contractual obligations and commitments include obligations associated with leases, the secured revolving credit agreement, senior notes, employee benefit plans, and facility consolidations/closures as disclosed in Note 16, Organizational Restructuring and Office Consolidation, to the consolidated financial statements.

SEGMENT INFORMATION

3 Months Ended

Apr. 03, 2021

Segment Reporting [Abstract]

SEGMENT INFORMATION

The table below presents certain information for our reportable segments and unallocated corporate expenses for the periods indicated:


	Fiscal quarter ended
(dollars in thousands)	April 3, 2021		% of Total Net Sales		March 28, 2020		% of Total Net Sales
Net sales:
U.S. Retail	$	407,067	51.7	%	$	320,717	49.0	%
U.S. Wholesale	283,377		36.0	%	252,130		38.5	%
International	96,917		12.3	%	81,626		12.5	%
Total net sales	$	787,361	100.0	%	$	654,473	100.0	%

Operating income (loss):			% of Segment Net Sales				% of Segment Net Sales
U.S. Retail	$	76,521	18.8	%	$	(32,376)	(10.1)	%
U.S. Wholesale	70,058		24.7	%	2,231		0.9	%
International	9,734		10.0	%	(27,705)		(33.9)	%
Corporate expenses(*)	(28,817)		n/a		(20,628)		n/a
Total operating income (loss)	$	127,496	16.2	%	$	(78,478)	(12.0)	%

(*)Corporate expenses include expenses related to incentive compensation, stock-based compensation, executive management, severance and relocation, finance, office occupancy, information technology, certain legal fees, consulting fees, and audit fees.


	Fiscal quarter ended April 3, 2021
(dollars in millions)	U.S. Retail		U.S. Wholesale		International

Incremental costs associated with COVID-19 pandemic	$	1.1	$	0.9	$	0.1
Gain on modification of retail store leases(1)	(1.5)		—		—
Total charges(2)(3)	$	(0.4)	$	0.9	$	0.1

(1)Related to gains on the modification of previously impaired retail store leases.

(2)The first fiscal quarter ended April 3, 2021 also includes corporate charges related to organizational restructuring of $0.5 million.

(3)Total charges exclude a customer bankruptcy recovery of $38,000.


	Fiscal quarter ended March 28, 2020
(dollars in millions)	U.S. Retail		U.S. Wholesale		International
Organizational restructuring(*)	$	1.5	$	0.6	$	0.3
Goodwill impairment	—		—		17.7
Skip Hop tradename impairment charge	0.5		6.8		3.7
OshKosh tradename impairment charge	13.6		1.6		0.3
Incremental costs associated with COVID-19 pandemic	2.2		0.3		0.3
Retail store operating leases and long-lived asset impairments	1.2		—		—
Total charges	$	19.0	$	9.3	$	22.3

(*)The first fiscal quarter ended March 28, 2020 also includes corporate charges related to organizational restructuring of $1.6 million.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-URI http://asc.fasb.org/topic&trid=2134510

+ Details

ORGANIZATIONAL RESTRUCTURING AND OFFICE CONSOLIDATION

3 Months Ended

Apr. 03, 2021

Restructuring and Related Activities [Abstract]

ORGANIZATIONAL RESTRUCTURING AND OFFICE CONSOLIDATION

As previously announced, the Company initiated several organizational restructuring initiatives which included a reorganization of staffing models across multiple functions to drive labor savings and increase efficiencies, the consolidation of certain functions into our corporate headquarters in Atlanta, Georgia, and over 100 planned store closures by the end of fiscal 2021. In conjunction with these initiatives, the Company recorded the following charges in selling, general and administrative expenses:


	Fiscal quarter ended
(dollars in thousands)	April 3, 2021		March 28, 2020
Severance and other termination benefits(*)	$	(85)	$	2,890
Relocation and recruiting	7		482
Lease exit costs	549		431
Other closure costs	23		86
Total	$	494	$	3,889

(*)Severance and other termination benefits in the first quarter of fiscal 2021 reflect revised employee assumptions.

The Company paid approximately $3.0 million in severance and other termination benefits during the first fiscal quarter ended April 3, 2021. As of April 3, 2021, there was approximately $4.6 million in reserves related to severance and other termination benefits expected to be paid out during fiscal 2021 included in Other current liabilities in the accompanying unaudited consolidated balance sheet. The Company expects to incur additional restructuring-related charges of approximately $1.0 million to $1.5 million through fiscal 2021. These charges primarily relate to accelerated depreciation and severance.

BASIS OF PRESENTATION (Policies)	3 Months Ended
BASIS OF PRESENTATION (Policies)	Apr. 03, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Revision of Previously Issued Financial Statements	Revision of Previously Issued Financial Statements During the second quarter of fiscal year 2020, it was determined that there were amounts presented incorrectly in the statement of cash flows for the annual and interim year to date periods subsequent to the December 30, 2018 adoption of ASC 842, Leases, due to the presentation of the non-cash impact of the initial and subsequent recognition of the Right of Use (“ROU”) assets and lease liabilities within the “Prepaid expenses and other assets” and “Accounts payable and other liabilities” line items, respectively, within operating cash flows. This incorrect presentation had no impact on net cash (used in) provided by operating activities for any of the periods. We assessed the materiality of the incorrect presentation and concluded that the previously issued financial statements were not materially misstated. The presentation errors resulted in an offsetting overstatement of cash used for prepaid expenses and other assets and cash provided by accounts payable and other liabilities of $29 million for the three months ended March 28, 2020. The accompanying consolidated statement of cash flows appropriately reflect the corrected presentation of these non-cash activities. In addition, the Company has reclassified prior comparable period amounts to present ROU asset amortization and lease liability payment activity on a net basis within the “Accounts payable and other liabilities” line item. The revisions to the three months ended March 31, 2020 have been presented in this Form 10-Q. We will continue to provide supplemental noncash cash flow disclosure information in the notes to the financial statements.

REVENUE RECOGNITION (Tables)

3 Months Ended

Apr. 03, 2021

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

Disaggregated revenues from these sources for the first quarter of fiscal 2021 and 2020 were as follows:


	Fiscal quarter ended April 3, 2021
(dollars in thousands)	U.S. Retail		U.S. Wholesale		International		Total
Wholesale channel	$	—	$	283,377	$	42,792	$	326,169
Direct-to-consumer	407,067		—		54,125		461,192

	$	407,067	$	283,377	$	96,917	$	787,361

Royalty income	$	3,070	$	3,775	$	618	$	7,463


	Fiscal quarter ended March 28, 2020
(dollars in thousands)	U.S. Retail		U.S. Wholesale		International		Total
Wholesale channel	$	—	$	252,130	$	38,730	$	290,860
Direct-to-consumer	320,717		—		42,896		363,613

	$	320,717	$	252,130	$	81,626	$	654,473

Royalty income	$	2,494	$	4,083	$	761	$	7,338

Accounts Receivable from Customers and Licensees

The components of Accounts receivable, net, were as follows:


(dollars in thousands)	April 3, 2021		January 2, 2021		March 28, 2020
Trade receivables from wholesale customers, net(1)	$	234,643	$	180,830	$	219,140
Royalties receivable	7,090		5,733		6,428
Tenant allowances and other receivables	11,664		12,315		11,968
Total gross receivables	$	253,397	$	198,878	$	237,536
Less: Wholesale accounts receivable reserves(1)(2)	(13,185)		(12,366)		(15,652)
Accounts receivable, net	$	240,212	$	186,512	$	221,884

(2)Includes allowance for credit losses of $6.7 million, $5.9 million, and $10.6 million for the periods ended April 3, 2021, January 2, 2021, and March 28, 2020, respectively.

Contract with Customer, Contract Asset, Contract Liability, and Receivable

Total contract liabilities consisted of the following amounts:


(dollars in thousands)	April 3, 2021		January 2, 2021		March 28, 2020
Contract liabilities - current:
Unredeemed gift cards	$	17,426	$	18,300	$	16,758
Unredeemed customer loyalty rewards	5,893		5,241		4,503
Carter’s credit card - upfront bonus(1)	714		714		714
Total contract liabilities - current(2)	$	24,033	$	24,255	$	21,975

Contract liabilities - non-current	$	2,679	$	2,857	$	3,393
Total contract liabilities	$	26,712	$	27,112	$	25,368

(2)Included with Other current liabilities on the Company's consolidated balance sheet.

LEASES (Tables)

3 Months Ended

Apr. 03, 2021

Leases [Abstract]

Lease, Cost


	Fiscal quarter ended
(dollars in thousands)	April 3, 2021		March 28, 2020
Operating lease cost	$	42,698	$	46,423




Variable lease cost(*)	16,398		16,285
Net lease cost	$	59,096	$	62,708

(*)Includes short-term leases, which are not material.

Lease Supplementary Disclosure

Supplemental balance sheet information related to leases was as follows:


	Fiscal quarter ended
	April 3, 2021	March 28, 2020
Weighted average remaining operating lease term (years)	5.3	5.9
Weighted average discount rate for operating leases	3.29%	4.29%

Cash paid for amounts included in the measurement of operating lease liabilities in the first quarter of fiscal 2021 and 2020 were $57.9 million and $50.2 million, respectively.

Non-cash transactions to recognize operating assets and liabilities for new leases in the first quarter of fiscal 2021 and 2020 were $3.3 million and $29.4 million, respectively.

Lessee, Operating Lease, Liability, Maturity

As of April 3, 2021, the maturities of lease liabilities were as follows:


(dollars in thousands)	Operating leases
Remainder of 2021	$	149,606
2022	159,141
2023	130,852
2024	104,942
2025	76,530
2026	54,094
After 2026	77,693
Total lease payments	$	752,858
Less: Interest	(62,866)
Present value of lease liabilities(*)	$	689,992

ACUMULATED OTHER COMPREHENSIVE LOSS (Tables)

3 Months Ended

Apr. 03, 2021

Text Block [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

The components of Accumulated other comprehensive loss consisted of the following:


(dollars in thousands)	April 3, 2021		January 2, 2021		March 28, 2020
Cumulative foreign currency translation adjustments	$	(20,081)	$	(21,307)	$	(39,514)
Pension and post-retirement obligations(*)	(11,453)		(11,453)		(9,112)
Total accumulated other comprehensive loss	$	(31,534)	$	(32,760)	$	(48,626)

(*)Net of income taxes of $3.5 million, $3.5 million, and $2.8 million, for the periods ended April 3, 2021, January 2, 2021, and March 28, 2020, respectively.

GOODWILL AND INTANGIBLE ASSETS (Tables)

3 Months Ended

Apr. 03, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

The balances and changes in the carrying amount of goodwill attributable to each segment were as follows:


(dollars in thousands)	U.S. Retail		U.S. Wholesale		International		Total
Balance at December 28, 2019	$	83,934	$	74,454	$	70,638	$	229,026


Goodwill impairment(1)	—		—		(17,742)		(17,742)
Foreign currency impact	—		—		(3,564)		(3,564)
Balance at March 28, 2020(2)	$	83,934	$	74,454	$	49,332	$	207,720


Balance at January 2, 2021(2)	$	83,934	$	74,454	$	53,388	$	211,776



Foreign currency impact	—		—		495		495
Balance at April 3, 2021(2)	$	83,934	$	74,454	$	53,883	$	212,271

(2)Goodwill balance for the International reporting unit is net of accumulated impairment losses of $17.7 million.

Schedule Of Goodwill and Other Intangible Assets

A summary of the carrying value of the Company’s intangible assets were as follows:


		April 3, 2021						January 2, 2021
(dollars in thousands)	Weighted-average useful life	Gross amount		Accumulated amortization		Net amount		Gross amount		Accumulated amortization		Net amount
Carter’s tradename	Indefinite	$	220,233	$	—	$	220,233	$	220,233	$	—	$	220,233
OshKosh tradename	Indefinite	70,000		—		70,000		70,000		—		70,000
Skip Hop tradename	Indefinite	15,000		—		15,000		15,000		—		15,000
Finite-life tradenames	5 -20 years	3,911		1,314		2,597		3,911		1,251		2,660

Total tradenames, net		$	309,144	$	1,314	$	307,830	$	309,144	$	1,251	$	307,893

Skip Hop customer relationships	15 years	$	47,300	$	12,628	$	34,672	$	47,300	$	11,834	$	35,466
Carter’s Mexico customer relationships	10 years	3,063		1,139		1,924		3,108		1,064		2,044
Total customer relationships, net		$	50,363	$	13,767	$	36,596	$	50,408	$	12,898	$	37,510


		March 28, 2020
(dollars in thousands)	Weighted-average useful life	Gross amount		Accumulated amortization		Net amount
Carter’s tradename	Indefinite	$	220,233	$	—	$	220,233
OshKosh tradename(1)	Indefinite	70,000		—		70,000
Skip Hop tradename(2)	Indefinite	15,000		—		15,000
Finite-life tradenames	5 - 20 years	3,911		1,064		2,847
Total tradenames, net		$	309,144	$	1,064	$	308,080

Skip Hop customer relationships	15 years	$	47,300	$	9,451	$	37,849
Carter’s Mexico customer relationships	10 years	2,790		854		1,936
Total customer relationships, net		$	50,090	$	10,305	$	39,785

COMMON STOCK (Tables)

3 Months Ended

Apr. 03, 2021

Equity [Abstract]

Open Market Repurchases

The Company repurchased and retired shares in open market transactions in the following amounts for the fiscal periods indicated:


	Fiscal quarter ended
	April 3, 2021		March 28, 2020
Number of shares repurchased	—		474,684
Aggregate cost of shares repurchased (dollars in thousands)	$	—	$	45,255
Average price per share	$	—	$	95.34

- Definition

Tabular disclosure of an entity's stock, including par or stated value per share, number and dollar amount of share subscriptions, shares authorized, shares issued, shares outstanding, number and dollar amount of shares held in an employee trust, dividend per share, total dividends, share conversion features, par value plus additional paid in capital, the value of treasury stock and other information necessary to a fair presentation, and EPS information. Stock by class includes common, convertible, and preferred stocks which are not redeemable or redeemable solely at the option of the issuer. Includes preferred stock with redemption features that are solely within the control of the issuer and mandatorily redeemable stock if redemption is required to occur only upon liquidation or termination of the reporting entity. If more than one issue is outstanding, state the title of each issue and the corresponding dollar amount; dollar amount of any shares subscribed but unissued and the deduction of subscriptions receivable there from; number of shares authorized, issued, and outstanding.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=65888546&loc=d3e21300-112643

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(28))
-URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21553-112644

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 480
-SubTopic 10
-Section S99
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=65877616&loc=d3e177068-122764

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21538-112644

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21521-112644

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(29))
-URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21488-112644

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=120397183&loc=d3e187085-122770

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21506-112644

Reference 11: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(27))
-URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 12: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21484-112644

Reference 13: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

LONG-TERM DEBT (Tables)

3 Months Ended

Apr. 03, 2021

Debt Disclosure [Abstract]

Schedule of Long-term Debt

Long-term debt consisted of the following:


(dollars in thousands)	April 3, 2021		January 2, 2021		March 28, 2020
$500 million 5.500% Senior Notes due May 15, 2025	$	500,000	$	500,000	$	—
$500 million 5.625% Senior Notes due March 15, 2027	500,000		500,000		500,000
Total senior notes	$	1,000,000	$	1,000,000	$	500,000
Less unamortized issuance-related costs for senior notes	(10,020)		(10,470)		(5,178)
Senior notes, net	$	989,980	$	989,530	$	494,822
Secured revolving credit facility	—		—		744,000
Total long-term debt, net	$	989,980	$	989,530	$	1,238,822

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=119993939&loc=d3e28541-108399

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21506-112644

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=119993939&loc=d3e28551-108399

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21521-112644

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21538-112644

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

STOCK-BASED COMPENSATION (Tables)

3 Months Ended

Apr. 03, 2021

Share-based Payment Arrangement [Abstract]

Summary of Recorded Stock-based Compensation Cost

The Company recorded stock-based compensation expense as follows:


	Fiscal quarter ended
(dollars in thousands)	April 3, 2021		March 28, 2020
Stock options	$	474	$	883
Restricted stock:
Time-based awards	3,900		2,989
Performance-based awards	2,557		(1,927)

Total	$	6,931	$	1,945

EARNINGS PER SHARE (Tables)

3 Months Ended

Apr. 03, 2021

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The following is a reconciliation of basic common shares outstanding to diluted common and common equivalent shares outstanding:


	Fiscal quarter ended
	April 3, 2021		March 28, 2020
Weighted-average number of common and common equivalent shares outstanding:
Basic number of common shares outstanding	43,370,744		43,355,635
Dilutive effect of equity awards(1)	129,198		—
Diluted number of common and common equivalent shares outstanding	43,499,942		43,355,635

Earnings per share:
(dollars in thousands, except per share data)
Basic net income (loss) per common share:
Net income (loss)	$	86,196	$	(78,694)
Income allocated to participating securities	(1,033)		(254)
Net income (loss) available to common shareholders	$	85,163	$	(78,948)

Basic net income (loss) per common share	$	1.96	$	(1.82)

Diluted net income (loss) per common share:
Net income (loss)	$	86,196	$	(78,694)
Income allocated to participating securities	(1,030)		(254)
Net income (loss) available to common shareholders	$	85,166	$	(78,948)

Diluted net income (loss) per common share	$	1.96	$	(1.82)

Anti-dilutive awards excluded from diluted earnings per share computation(2)	481,491		302,238

(2)The volume of anti-dilutive awards is, in part, due to the related unamortized compensation costs.

SEGMENT INFORMATION (Tables)

3 Months Ended

Apr. 03, 2021

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

The table below presents certain information for our reportable segments and unallocated corporate expenses for the periods indicated:


	Fiscal quarter ended
(dollars in thousands)	April 3, 2021		% of Total Net Sales		March 28, 2020		% of Total Net Sales
Net sales:
U.S. Retail	$	407,067	51.7	%	$	320,717	49.0	%
U.S. Wholesale	283,377		36.0	%	252,130		38.5	%
International	96,917		12.3	%	81,626		12.5	%
Total net sales	$	787,361	100.0	%	$	654,473	100.0	%

Operating income (loss):			% of Segment Net Sales				% of Segment Net Sales
U.S. Retail	$	76,521	18.8	%	$	(32,376)	(10.1)	%
U.S. Wholesale	70,058		24.7	%	2,231		0.9	%
International	9,734		10.0	%	(27,705)		(33.9)	%
Corporate expenses(*)	(28,817)		n/a		(20,628)		n/a
Total operating income (loss)	$	127,496	16.2	%	$	(78,478)	(12.0)	%


	Fiscal quarter ended April 3, 2021
(dollars in millions)	U.S. Retail		U.S. Wholesale		International

Incremental costs associated with COVID-19 pandemic	$	1.1	$	0.9	$	0.1
Gain on modification of retail store leases(1)	(1.5)		—		—
Total charges(2)(3)	$	(0.4)	$	0.9	$	0.1

(1)Related to gains on the modification of previously impaired retail store leases.

(2)The first fiscal quarter ended April 3, 2021 also includes corporate charges related to organizational restructuring of $0.5 million.

(3)Total charges exclude a customer bankruptcy recovery of $38,000.


	Fiscal quarter ended March 28, 2020
(dollars in millions)	U.S. Retail		U.S. Wholesale		International
Organizational restructuring(*)	$	1.5	$	0.6	$	0.3
Goodwill impairment	—		—		17.7
Skip Hop tradename impairment charge	0.5		6.8		3.7
OshKosh tradename impairment charge	13.6		1.6		0.3
Incremental costs associated with COVID-19 pandemic	2.2		0.3		0.3
Retail store operating leases and long-lived asset impairments	1.2		—		—
Total charges	$	19.0	$	9.3	$	22.3

(*)The first fiscal quarter ended March 28, 2020 also includes corporate charges related to organizational restructuring of $1.6 million.

ORGANIZATIONAL RESTRUCTURING AND OFFICE CONSOLIDATION (Tables)

3 Months Ended

Apr. 03, 2021

Restructuring and Related Activities [Abstract]

Organizational Restructuring and Office Consolidation Cost

In conjunction with these initiatives, the Company recorded the following charges in selling, general and administrative expenses:


	Fiscal quarter ended
(dollars in thousands)	April 3, 2021		March 28, 2020
Severance and other termination benefits(*)	$	(85)	$	2,890
Relocation and recruiting	7		482
Lease exit costs	549		431
Other closure costs	23		86
Total	$	494	$	3,889

(*)Severance and other termination benefits in the first quarter of fiscal 2021 reflect revised employee assumptions.

BASIS OF PRESENTATION (Details) - USD ($) $ in Thousands	3 Months Ended
BASIS OF PRESENTATION (Details) - USD ($) $ in Thousands	Apr. 03, 2021	Mar. 28, 2020	Jan. 02, 2021
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Increase (decrease) in prepaid expense and other assets	$ 5,186	$ (7,254)
Benefit in fabric purchase commitment charges	(6,300)
Inventory valuation reserves	15,581	35,597	$ 14,206
Purchase Commitment
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Inventory valuation reserves	6,300
COVID 19 COST
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Other expenses	$ 2,100
Restatement Adjustment Member
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Increase (decrease) in prepaid expense and other assets		$ 29,000

REVENUE RECOGNITION (Details) - USD ($) $ in Thousands	3 Months Ended
REVENUE RECOGNITION (Details) - USD ($) $ in Thousands	Apr. 03, 2021	Mar. 28, 2020	Jan. 02, 2021
Disaggregation of Revenue [Line Items]
Net sales	$ 787,361	$ 654,473
Trade receivables from wholesale customers, net	253,397	237,536	$ 198,878
Less: Wholesale accounts receivable reserves	(6,695)	(10,620)	(5,940)
Accounts receivable, net	240,212	221,884	186,512
Reclassification of accounts receivable, gross, current		2,000
Trade Accounts Receivable
Disaggregation of Revenue [Line Items]
Trade receivables from wholesale customers, net	234,643	219,140	180,830
Royalties receivable
Disaggregation of Revenue [Line Items]
Trade receivables from wholesale customers, net	7,090	6,428	5,733
Tenant allowances and other receivables
Disaggregation of Revenue [Line Items]
Trade receivables from wholesale customers, net	11,664	11,968	12,315
SEC Schedule, 12-09, Allowance, Credit Loss
Disaggregation of Revenue [Line Items]
Less: Wholesale accounts receivable reserves	(13,185)	(15,652)	$ (12,366)
U.S. Retail
Disaggregation of Revenue [Line Items]
Net sales	407,067	320,717
U.S. Wholesale
Disaggregation of Revenue [Line Items]
Net sales	283,377	252,130
International
Disaggregation of Revenue [Line Items]
Net sales	96,917	81,626
5130 Wholesale, Apparel, Piece Goods and Notions
Disaggregation of Revenue [Line Items]
Net sales	326,169	290,860
5130 Wholesale, Apparel, Piece Goods and Notions \| U.S. Retail
Disaggregation of Revenue [Line Items]
Net sales	0	0
5130 Wholesale, Apparel, Piece Goods and Notions \| U.S. Wholesale
Disaggregation of Revenue [Line Items]
Net sales	283,377	252,130
5130 Wholesale, Apparel, Piece Goods and Notions \| International
Disaggregation of Revenue [Line Items]
Net sales	42,792	38,730
5600 Retail, Apparel and Accessory Stores
Disaggregation of Revenue [Line Items]
Net sales	461,192	363,613
5600 Retail, Apparel and Accessory Stores \| U.S. Retail
Disaggregation of Revenue [Line Items]
Net sales	407,067	320,717
5600 Retail, Apparel and Accessory Stores \| U.S. Wholesale
Disaggregation of Revenue [Line Items]
Net sales	0	0
5600 Retail, Apparel and Accessory Stores \| International
Disaggregation of Revenue [Line Items]
Net sales	54,125	42,896
Licensing Agreements
Disaggregation of Revenue [Line Items]
Net sales	7,463	7,338
Licensing Agreements \| U.S. Retail
Disaggregation of Revenue [Line Items]
Net sales	3,070	2,494
Licensing Agreements \| U.S. Wholesale
Disaggregation of Revenue [Line Items]
Net sales	3,775	4,083
Licensing Agreements \| International
Disaggregation of Revenue [Line Items]
Net sales	$ 618	$ 761

REVENUE RECOGNITION - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands	Apr. 03, 2021	Jan. 02, 2021	Mar. 28, 2020
Revenue from Contract with Customer [Abstract]
Unredeemed gift cards	$ 17,426	$ 18,300	$ 16,758
Unredeemed customer loyalty rewards	5,893	5,241	4,503
Carter's credit card - upfront bonus	714	714	714
Total contract liabilities - current	24,033	24,255	21,975
Contract liabilities - non-current	2,679	2,857	3,393
Total contract liabilities	$ 26,712	$ 27,112	$ 25,368

LEASES - Narrative (Details) $ in Millions	3 Months Ended
LEASES - Narrative (Details) $ in Millions	Apr. 03, 2021 USD ($)
Lessee, Lease, Description [Line Items]
Minimum rental commitments for contracts not yet commenced	$ 6.9
Minimum
Lessee, Lease, Description [Line Items]
Initial term	1 year
Lease term for contracts not yet commenced	7 years
Maximum
Lessee, Lease, Description [Line Items]
Initial term	10 years
Extension option term	5 years
Lease term for contracts not yet commenced	9 years

LEASES - Schedule of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 03, 2021	Mar. 28, 2020
Leases [Abstract]
Operating lease cost	$ 42,698	$ 46,423
Variable lease cost	16,398	16,285
Net lease cost	$ 59,096	$ 62,708

LEASES - Supplemental balance sheet information (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 03, 2021	Mar. 28, 2020
Leases [Abstract]
Weighted average remaining operating lease term (years)	5 years 3 months 18 days	5 years 10 months 24 days
Weighted average discount rate for operating leases	3.29%	4.29%
Operating lease payments	$ 57.9	$ 50.2
Non-cash transaction	$ 3.3	$ 29.4

LEASES - Maturities of lease liabilities (Details) $ in Thousands	Apr. 03, 2021 USD ($)
Leases [Abstract]
Remainder of 2021	$ 149,606
2022	159,141
2023	130,852
2024	104,942
2025	76,530
2026	54,094
After 2026	77,693
Total lease payments	752,858
Less: Interest	(62,866)
Present value of lease liabilities	$ 689,992

ACUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Apr. 03, 2021	Mar. 28, 2020	Jan. 02, 2021
Text Block [Abstract]
Cumulative foreign currency translation adjustments	$ (20,081)	$ (39,514)	$ (21,307)
Pension and post-retirement obligations	(11,453)	(9,112)	(11,453)
Accumulated other comprehensive loss	(31,534)	(48,626)	(32,760)
Net income taxes attributable to pension plan	$ 3,500	$ 2,800	$ 3,500

- Definition

Accumulated change in equity from transactions and other events and circumstances from non-owner sources, net of tax effect, at period end. Excludes Net Income (Loss), and accumulated changes in equity from transactions resulting from investments by owners and distributions to owners. Includes foreign currency translation items, certain pension adjustments, unrealized gains and losses on certain investments in debt and equity securities, other than temporary impairment (OTTI) losses related to factors other than credit losses on available-for-sale and held-to-maturity debt securities that an entity does not intend to sell and it is not more likely than not that the entity will be required to sell before recovery of the amortized cost basis, as well as changes in the fair value of derivatives related to the effective portion of a designated cash flow hedge.

+ References + Details

GOODWILL AND INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 03, 2021	Mar. 28, 2020	Jan. 02, 2021	Dec. 28, 2019
Goodwill [Line Items]
Goodwill, gross			$ 211,776	$ 229,026
Goodwill impairment	$ 0	$ 17,742
Foreign currency impact	495	(3,564)
Goodwill	212,271	207,720	211,776
Intangible asset impairment	0	26,500
Amortization expense for intangible assets	900	900
Remainder of 2021	2,797
2022	3,730
2023	3,688
2024	3,658
2025	3,658
2026	3,658
Other Tradenames [Member]
Goodwill [Line Items]
Finite-lived intangible assets, gross	3,911	3,911	3,911
Finite-Lived Intangible Assets, Accumulated Amortization	1,314	1,064	1,251
Net amount	$ 2,597	$ 2,847	2,660
Other Tradenames [Member] \| Minimum
Goodwill [Line Items]
Weighted-average useful life	5 years	5 years
Other Tradenames [Member] \| Maximum
Goodwill [Line Items]
Weighted-average useful life	20 years	20 years
Trade Names
Goodwill [Line Items]
Finite-lived intangible assets, gross	$ 309,144	$ 309,144	309,144
Finite-Lived Intangible Assets, Accumulated Amortization	1,314	1,064	1,251
Net amount	307,830	308,080	307,893
Skip Hop customer relationships
Goodwill [Line Items]
Finite-lived intangible assets, gross	47,300	47,300	47,300
Finite-Lived Intangible Assets, Accumulated Amortization	12,628	9,451	11,834
Net amount	$ 34,672	$ 37,849	35,466
Weighted-average useful life	15 years	15 years
Carter’s Mexico customer relationships
Goodwill [Line Items]
Finite-lived intangible assets, gross	$ 3,063	$ 2,790	3,108
Finite-Lived Intangible Assets, Accumulated Amortization	1,139	854	1,064
Net amount	$ 1,924	$ 1,936	2,044
Weighted-average useful life	10 years	10 years
Customer Relationships
Goodwill [Line Items]
Finite-lived intangible assets, gross	$ 50,363	$ 50,090	50,408
Finite-Lived Intangible Assets, Accumulated Amortization	13,767	10,305	12,898
Net amount	36,596	39,785	37,510
Carters Trade Name
Goodwill [Line Items]
Indefinite-lived intangible assets (excluding goodwill)	220,233	220,233	220,233
OshKosh tradename impairment charge
Goodwill [Line Items]
Indefinite-lived intangible assets (excluding goodwill)	70,000	70,000	70,000
Skip Hop tradename impairment charge
Goodwill [Line Items]
Indefinite-lived intangible assets (excluding goodwill)	15,000	15,000	15,000
U.S. Retail
Goodwill [Line Items]
Goodwill, gross			83,934	83,934
Goodwill impairment		0
Foreign currency impact	0	0
Goodwill	83,934	83,934
U.S. Retail \| OshKosh tradename impairment charge
Goodwill [Line Items]
Intangible asset impairment		13,600
U.S. Retail \| Skip Hop tradename impairment charge
Goodwill [Line Items]
Intangible asset impairment		500
U.S. Wholesale
Goodwill [Line Items]
Goodwill, gross			74,454	74,454
Goodwill impairment		0
Foreign currency impact	0	0
Goodwill	74,454	74,454
U.S. Wholesale \| OshKosh tradename impairment charge
Goodwill [Line Items]
Intangible asset impairment		1,600
U.S. Wholesale \| Skip Hop tradename impairment charge
Goodwill [Line Items]
Intangible asset impairment		6,800
International
Goodwill [Line Items]
Goodwill, gross			$ 53,388	$ 70,638
Goodwill impairment		17,742
Foreign currency impact	495	(3,564)
Goodwill	53,883	49,332
Goodwill, net of accumulated impairment losses	$ 17,700
International \| OshKosh tradename impairment charge
Goodwill [Line Items]
Intangible asset impairment		300
International \| Skip Hop tradename impairment charge
Goodwill [Line Items]
Intangible asset impairment		3,700
Other International Reporting Unit Member
Goodwill [Line Items]
Goodwill impairment		$ 17,700

COMMON STOCK - Schedule (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Apr. 03, 2021	Mar. 28, 2020
Equity [Abstract]
Number of share repurchased (in shares)	0	474,684
Aggregate cost of shares repurchased (dollars in thousands)	$ 0	$ 45,255
Average price per share (in USD per share)	$ 0	$ 95.34
Aggregate remaining capacity under repurchase authorization	$ 650,400

COMMON STOCK - Dividends (Details) - $ / shares		3 Months Ended
COMMON STOCK - Dividends (Details) - $ / shares	Apr. 27, 2021	Apr. 03, 2021	Mar. 28, 2020
Equity [Abstract]
Dividend declared and paid per common share (in USD per share)		$ 0	$ 0.60
Class of Stock [Line Items]
Dividend declared and paid per common share (in USD per share)		$ 0	$ 0.60
Subsequent Event
Equity [Abstract]
Dividend declared and paid per common share (in USD per share)	$ 0.40
Class of Stock [Line Items]
Dividend declared and paid per common share (in USD per share)	$ 0.40

LONG-TERM DEBT - Schedule (Details) - USD ($)	Apr. 03, 2021	Jan. 02, 2021	Mar. 28, 2020
Debt Instrument [Line Items]
Long-term debt, net	$ 989,980,000	$ 989,530,000	$ 1,238,822,000
Total Senior Notes Member
Debt Instrument [Line Items]
Long-term debt, gross	1,000,000,000	1,000,000,000	500,000,000
Less unamortized issuance-related costs for senior notes	(10,020,000)	(10,470,000)	(5,178,000)
Senior notes, net	989,980,000	989,530,000	494,822,000
Revolving Credit Facility
Debt Instrument [Line Items]
Secured revolving credit facility	0	0	744,000,000
Five Point Five Percent Senior Notes due Twenty Twenty Five \| Senior Notes
Debt Instrument [Line Items]
Long-term debt, gross	$ 500,000,000	500,000,000	0
Interest rate	5.50%
Five Point Six Two Five Percent Senior Notes due Twenty Twenty Seven Member \| Senior Notes
Debt Instrument [Line Items]
Long-term debt, gross	$ 500,000,000	$ 500,000,000	$ 500,000,000
Interest rate	5.625%

LONG-TERM DEBT (Details) - USD ($)	Apr. 21, 2021	Apr. 03, 2021	Jan. 02, 2021	Mar. 28, 2020
Debt Instrument [Line Items]
Letters of Credit Outstanding, Amount		$ 5,000,000.0
Amendment No. 3 \| Subsequent Event
Debt Instrument [Line Items]
Minimum liquidity	$ 950,000,000
Increased in Minimum liquidity	250,000,000
Amendment No. 2 \| Subsequent Event
Debt Instrument [Line Items]
Minimum liquidity	700,000,000
Maximum \| Amendment No. 3 \| Subsequent Event
Debt Instrument [Line Items]
Additional restricted payments	$ 250,000,000
London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Interest rate		1.625%
Base Rate
Debt Instrument [Line Items]
Interest rate		0.625%
Revolving Credit Facility
Debt Instrument [Line Items]
Secured revolving credit facility		$ 0	$ 0	$ 744,000,000
Remaining borrowing capacity		$ 745,000,000.0

STOCK-BASED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended
	Feb. 10, 2021	Apr. 03, 2021	Mar. 28, 2020
Performance-based awards
Stock-based compensation expense		$ 6,931	$ 1,945
Total stock-based compensation expense		(6,931)	(1,945)
Stock options
Performance-based awards
Stock-based compensation expense		474	883
Time-based awards
Performance-based awards
Stock-based compensation expense		$ 3,900	2,989
Time-based awards granted (in shares)	301,584
Grant-date fair value of shares issued (in USD per share)	$ 98.05
Time-based awards vest (in shares)		94,589
Performance Shares
Performance-based awards
Stock-based compensation expense		$ 2,557	$ (1,927)

INCOME TAXES (Details) - USD ($) $ in Millions	Apr. 03, 2021	Jan. 02, 2021	Mar. 28, 2020
Income Tax Disclosure [Abstract]
Unrecognized tax benefits	$ 15.6
Unrecognized tax benefits, impact on effective tax rate	11.0
Reserves that statue of limitations is expected to expire	2.1
Interest accrued on uncertain tax positions	$ 2.9	$ 2.7	$ 2.5

FAIR VALUE MEASUREMENTS - Investments (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 28, 2020	Apr. 03, 2021	Jan. 02, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loss on investments	$ (3.0)
Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	$ 16.7	$ 15.4	$ 20.2

FAIR VALUE MEASUREMENTS - Borrowings (Details) - USD ($)	Apr. 03, 2021	Jan. 02, 2021	Mar. 28, 2020
Total Senior Notes Member
Debt Instrument [Line Items]
Fair value of senior notes	$ 1,060,000,000.00
Notional and carrying value of senior notes	1,000,000,000.00
Revolving Credit Facility
Debt Instrument [Line Items]
Secured revolving credit facility	$ 0	$ 0	$ 744,000,000

- Definition

The carrying value as of the balance sheet date of the current and noncurrent portions of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.

+ References + Details

- Definition

The carrying value as of the balance sheet date of the noncurrent portion of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.

+ References + Details

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Apr. 03, 2021	Mar. 28, 2020
Weighted-average number of common and common equivalent shares outstanding:
Basic number of common shares outstanding (in shares)	43,370,744	43,355,635
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements	129,198	0
Diluted number of common and common equivalent shares outstanding (in shares)	43,499,942	43,355,635
Earnings per share:
Net income (loss)	$ 86,196	$ (78,694)
Income allocated to participating securities	(1,033)	(254)
Net income (loss) available to common shareholders	$ 85,163	$ (78,948)
Basic net income (loss) per common share (in USD per share)	$ 1.96	$ (1.82)
Diluted net income (loss) per common share:
Net income (loss)	$ 86,196	$ (78,694)
Income allocated to participating securities	(1,030)	(254)
Net income (loss) available to common shareholders	$ 85,166	$ (78,948)
Diluted net income (loss) per common share (in USD per share)	$ 1.96	$ (1.82)
potentially dilutive equity awards (in shares)	481,491	302,238
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
potentially dilutive equity awards (in shares)	481,491	302,238
Restricted Stock
Diluted net income (loss) per common share:
potentially dilutive equity awards (in shares)		339,841
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
potentially dilutive equity awards (in shares)		339,841

OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands	Apr. 03, 2021	Jan. 02, 2021	Mar. 28, 2020
Accrued Liabilities, Current [Abstract]
Income taxes payable	$ 40,143	$ 21,164	$ 7,665
Unredeemed gift cards	17,426	18,300	16,758
Accrued employee benefits	17,307	22,876	9,908
Accrued taxes	16,054	10,900	7,378
Accrued interest	11,987	12,092	1,605
Accrued bonuses and incentive compensation	10,222	8,873	24
Accrued salaries and wages	4,773	10,650	11,911
Other	31,999	30,385	23,886
Other current liabilities	$ 149,911	$ 135,240	$ 79,135

SEGMENT INFORMATION (Details) - USD ($)	3 Months Ended
SEGMENT INFORMATION (Details) - USD ($)	Apr. 03, 2021	Mar. 28, 2020
Segment Reporting Information [Line Items]
Net sales	$ 787,361,000	$ 654,473,000
% of Total Net Sales	100.00%	100.00%
Operating income (loss)	$ 127,496,000	$ (78,478,000)
Corporate expenses	$ (28,817,000)	$ (20,628,000)
% of Segment Net Sales	16.20%	(12.00%)
Restructuring charges	$ 494,000	$ 3,889,000
Goodwill impairment	0	17,742,000
Intangible asset impairment	0	26,500,000
Provisions for doubtful accounts receivable from customers	766,000	4,270,000
U.S. Retail
Segment Reporting Information [Line Items]
Net sales	407,067,000	320,717,000
Goodwill impairment		0
U.S. Retail \| Skip Hop tradename impairment charge
Segment Reporting Information [Line Items]
Intangible asset impairment		500,000
U.S. Retail \| OshKosh tradename impairment charge
Segment Reporting Information [Line Items]
Intangible asset impairment		13,600,000
U.S. Wholesale
Segment Reporting Information [Line Items]
Net sales	283,377,000	252,130,000
Goodwill impairment		0
U.S. Wholesale \| Skip Hop tradename impairment charge
Segment Reporting Information [Line Items]
Intangible asset impairment		6,800,000
U.S. Wholesale \| OshKosh tradename impairment charge
Segment Reporting Information [Line Items]
Intangible asset impairment		1,600,000
International
Segment Reporting Information [Line Items]
Goodwill impairment		17,742,000
International \| Skip Hop tradename impairment charge
Segment Reporting Information [Line Items]
Intangible asset impairment		3,700,000
International \| OshKosh tradename impairment charge
Segment Reporting Information [Line Items]
Intangible asset impairment		300,000
Operating Segments
Segment Reporting Information [Line Items]
Restructuring charges	500,000	1,600,000
Operating Segments \| U.S. Retail
Segment Reporting Information [Line Items]
Net sales	$ 407,067,000	$ 320,717,000
% of Total Net Sales	51.70%	49.00%
Operating income (loss)	$ 76,521,000	$ (32,376,000)
% of Segment Net Sales	18.80%	(10.10%)
Restructuring charges		$ 1,500,000
Goodwill impairment		0
Incremental costs associated with COVID-19 pandemic	$ 1,100,000	2,200,000
Gain on modification of retail store leases	1,500,000
Retail store operating leases and long-lived asset impairments		1,200,000
Total charges	400,000	19,000,000.0
Operating Segments \| U.S. Retail \| Skip Hop tradename impairment charge
Segment Reporting Information [Line Items]
Intangible asset impairment		500,000
Operating Segments \| U.S. Retail \| OshKosh tradename impairment charge
Segment Reporting Information [Line Items]
Intangible asset impairment		13,600,000
Operating Segments \| U.S. Wholesale
Segment Reporting Information [Line Items]
Net sales	$ 283,377,000	$ (252,130,000)
% of Total Net Sales	36.00%	38.50%
Operating income (loss)	$ 70,058,000	$ 2,231,000
% of Segment Net Sales	24.70%	0.90%
Restructuring charges		$ 600,000
Goodwill impairment		0
Incremental costs associated with COVID-19 pandemic	$ 900,000	300,000
Gain on modification of retail store leases	0
Retail store operating leases and long-lived asset impairments		0
Total charges	900,000	9,300,000
Provisions for doubtful accounts receivable from customers	38,000
Operating Segments \| U.S. Wholesale \| Skip Hop tradename impairment charge
Segment Reporting Information [Line Items]
Intangible asset impairment		6,800,000
Operating Segments \| U.S. Wholesale \| OshKosh tradename impairment charge
Segment Reporting Information [Line Items]
Intangible asset impairment		1,600,000
Operating Segments \| International
Segment Reporting Information [Line Items]
Net sales	$ 96,917,000	$ 81,626,000
% of Total Net Sales	12.30%	12.50%
Operating income (loss)	$ 9,734,000	$ (27,705,000)
% of Segment Net Sales	10.00%	(33.90%)
Restructuring charges		$ 300,000
Goodwill impairment		17,700,000
Incremental costs associated with COVID-19 pandemic	$ 100,000	300,000
Gain on modification of retail store leases	0
Retail store operating leases and long-lived asset impairments		0
Total charges	$ 100,000	22,300,000
Operating Segments \| International \| Skip Hop tradename impairment charge
Segment Reporting Information [Line Items]
Intangible asset impairment		3,700,000
Operating Segments \| International \| OshKosh tradename impairment charge
Segment Reporting Information [Line Items]
Intangible asset impairment		$ 300,000

ORGANIZATIONAL RESTRUCTURING AND OFFICE CONSOLIDATION (Details) $ in Thousands	3 Months Ended
	Apr. 03, 2021 USD ($) store	Mar. 28, 2020 USD ($)
Organizational Restructuring and Office Consolidation [Line Items]
Planned store closures \| store	100
Restructuring charges	$ (494)	$ (3,889)
Severance and other termination benefits
Organizational Restructuring and Office Consolidation [Line Items]
Payments for restructuring	3,000
Restructuring reserve	4,600
Severance and other termination benefits \| Minimum
Organizational Restructuring and Office Consolidation [Line Items]
Additional restructuring-related charges	1,000
Severance and other termination benefits \| Maximum
Organizational Restructuring and Office Consolidation [Line Items]
Additional restructuring-related charges	1,500
Selling, General and Administrative Expenses \| Severance and other termination benefits
Organizational Restructuring and Office Consolidation [Line Items]
Restructuring charges	(85)	(2,890)
Selling, General and Administrative Expenses \| Relocation and recruiting
Organizational Restructuring and Office Consolidation [Line Items]
Restructuring charges	(7)	(482)
Selling, General and Administrative Expenses \| Lease exit costs
Organizational Restructuring and Office Consolidation [Line Items]
Restructuring charges	(549)	(431)
Selling, General and Administrative Expenses \| Other closure costs
Organizational Restructuring and Office Consolidation [Line Items]
Restructuring charges	$ (23)	$ (86)