0001060822-21-000006 | 10-K | XBRL Viewer

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DOCUMENT AND ENTITY INFORMATION - USD ($)	12 Months Ended
DOCUMENT AND ENTITY INFORMATION - USD ($)	Jan. 02, 2021	Feb. 19, 2021	Jun. 27, 2020
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Jan. 02, 2021
Current Fiscal Year End Date	--01-02
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 Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 2,804,873,786
Entity Common Stock, Shares Outstanding (in shares)		44,053,137
Entity Central Index Key	0001060822
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jan. 02, 2021	Dec. 28, 2019
Current assets:
Cash and cash equivalents	$ 1,102,323	$ 214,311
Receivables, Net, Current	186,512	251,005
Inventory, Net	599,262	593,987
Prepaid expenses and other current assets	57,927	48,454
Total current assets	1,946,024	1,107,757
Property, plant, and equipment, net	262,345	320,168
Operating lease assets	593,008	687,024
Tradenames, net	307,893	334,642
Goodwill	211,776	229,026
Customer relationships, net	37,510	41,126
Other assets	34,024	33,374
Total assets	3,392,580	2,753,117
Current liabilities:
Accounts payable	472,140	183,641
Current operating lease liabilities	185,152	160,228
Other current liabilities	135,240	131,631
Total current liabilities	792,532	475,500
Long-term debt, net	989,530	594,672
Deferred Income Tax Liabilities, Net	52,770	74,370
Long-term operating lease liabilities	554,497	664,372
Other long-term liabilities	65,218	64,073
Total liabilities	2,454,547	1,872,987
Stockholders’ equity:
Preferred stock; par value $.01 per share; 100,000 shares authorized; none issued or outstanding at January 2, 2021 and December 28, 2019	0	0
Common stock, voting; par value $0.01 per share; 150,000,000 shares authorized; 43,780,075 and 43,963,103 shares issued and outstanding at January 2, 2021 and December 28, 2019, respectively	438	440
Additional Paid in Capital	17,752	0
Accumulated other comprehensive loss	(32,760)	(35,634)
Retained earnings	952,603	915,324
Stockholders' Equity Attributable to Parent, Total	938,033	880,130
Total liabilities and stockholders’ equity	$ 3,392,580	$ 2,753,117

CONSOLIDATED BALANCE SHEETS (Parenthetical) $ in Thousands	Jan. 02, 2021 USD ($) $ / shares shares
Statement of Financial Position [Abstract]
Accounts Receivable, Allowance for Credit Loss, Current \| $	$ 5,940
Inventory Valuation Reserves \| $	$ 14,206
Preferred stock; outstanding (in shares)	0
Preferred stock; shares authorized (in shares)	100,000
Common stock, voting; shares authorized (in shares)	150,000,000
Common stock, voting; par value (USD per share) \| $ / shares	$ 0.01
Preferred stock; par value (USD per share) \| $ / shares	$ 0.01
Common stock voting; shares issued (in shares)	43,780,075

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	12 Months Ended
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Net sales	$ 3,024,334,000	$ 3,519,286,000	$ 3,462,269,000
Cost of goods sold	1,696,224,000	2,008,630,000	1,962,113,000
Adverse purchase commitments (inventory and raw materials), net	14,668,000	2,106,000	2,673,000
Gross profit	1,313,442,000	1,508,550,000	1,497,483,000
Selling, general, and administrative expenses	1,105,607,000	1,140,515,000	1,144,980,000
Goodwill impairment	17,742,000	0	0
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)	26,500,000	30,800,000	0
Operating (loss) income	189,869,000	371,872,000	391,433,000
Interest expense	56,062,000	37,617,000	34,569,000
Interest income	(1,515,000)	(1,303,000)	(527,000)
Other expense (income), net	338,000	(217,000)	1,416,000
Loss on extinguishment of debt	0	7,823,000	0
Total	134,984,000	327,952,000	355,975,000
Income tax provision	25,267,000	64,150,000	73,907,000
Net income	$ 109,717,000	$ 263,802,000	$ 282,068,000
Basic net income per common share	$ 2.51	$ 5.89	$ 6.06
Diluted net income per common share	2.50	5.85	6.00
Dividend declared and paid per common share	$ 0.60	$ 2.00	$ 1.80
Royalty [Member]
Net sales	$ 26,276,000	$ 34,637,000	$ 38,930,000

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Statement of Comprehensive Income [Abstract]
Net (loss) income	$ 109,717	$ 263,802	$ 282,068
Other comprehensive income:
Other Comprehensive Income (Loss), Defined Benefit Plans, Net Unrealized Gain (Loss) Arising During Period, Net of Tax	(2,197)	746	(281)
Other Comprehensive Income (Loss), Postretirement Benefit Obligations, Net Unrealized Gain (Loss) Arising During Period, Net of Tax	(144)	(483)	214
Foreign currency translation adjustments	5,215	6,442	(11,679)
Total other comprehensive income (loss)	2,874	6,705	(11,746)
Comprehensive income	$ 112,591	$ 270,507	$ 270,322

- Definition

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

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+ Details

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Pension Plans
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, Tax	$ 680	$ (230)	$ 80
Postretirement Benefit
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, Tax	$ 39	$ 150	$ (70)

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Cash flows from operating activities:
Net (loss) income	$ 109,717,000	$ 263,802,000	$ 282,068,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation or property, plant, and equipment	90,284,000	92,207,000	85,936,000
Amortization of intangible assets	3,715,000	3,747,000	3,717,000
Provisions for (recoveries of) excess and obsolete inventory, net	4,866,000	5,791,000	(6,954,000)
Goodwill impairment	17,742,000	0	0
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)	26,500,000	30,800,000	0
Other asset impairments and loss on disposal of property, plant and equipment, net of recoveries	12,785,000	452,000	995,000
Amortization of debt issuance costs	2,372,000	1,437,000	1,746,000
Stock-based compensation expense	12,830,000	16,529,000	14,673,000
Unrealized foreign currency exchange loss (gain), net	361,000	(564,000)	271,000
Accounts Receivable, Credit Loss Expense (Reversal)	6,072,000	(220,000)	15,801,000
Loss on extinguishment of debt	0	7,823,000	0
Deferred Income Tax Expense (Benefit)	(23,254,000)	(13,300,000)	(1,018,000)
Effect of changes in operating assets and liabilities, net of acquisitions:
Accounts receivable	58,275,000	8,121,000	(34,448,000)
Finished goods inventories	(8,063,000)	(22,474,000)	(23,692,000)
Prepaid expenses and other assets	(9,132,000)	(13,759,000)	12,121,000
Accounts payable and other liabilities	284,824,000	6,823,000	4,982,000
Net cash provided by operating activities	589,894,000	387,215,000	356,198,000
Cash flows from investing activities:
Capital expenditures	(32,871,000)	(61,419,000)	(63,783,000)
Acquisitions of businesses, net of cash acquired	0	0	96,000
Disposals and recoveries from property, plant, and equipment	0	749,000	380,000
Net cash used in investing activities	(32,871,000)	(60,670,000)	(63,307,000)
Cash flows from financing activities:
Proceeds from senior notes due 2025	500,000,000	0	0
Proceeds from senior notes due 2027	0	500,000,000	0
Payment of senior notes due 2021	0	(400,000,000)	0
Premiums paid to extinguish debt	0	(5,252,000)	0
Payments of debt issuance costs	(7,639,000)	(5,793,000)	(968,000)
Borrowings under secured revolving credit facility	644,000,000	265,000,000	290,000,000
Payments on secured revolving credit facility	(744,000,000)	(361,000,000)	(315,000,000)
Repurchase of common stock	(45,255,000)	(196,910,000)	(193,028,000)
Dividends paid	(26,260,000)	(89,591,000)	(83,717,000)
Withholdings from vesting of restricted stock	(5,011,000)	(4,328,000)	(6,830,000)
Proceeds from exercise of stock options	9,008,000	14,490,000	10,597,000
Net cash provided by (used in) financing activities	324,843,000	(283,384,000)	(298,946,000)
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	6,146,000	1,073,000	(2,362,000)
Net increase (decrease) in cash and cash equivalents	888,012,000	44,234,000	(8,417,000)
Cash and cash equivalents, beginning of fiscal year	214,311,000	170,077,000	178,494,000
Cash and cash equivalents, end of fiscal year	$ 1,102,323,000	$ 214,311,000	$ 170,077,000

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Retained Earnings [Member]
Balance at Dec. 30, 2017	$ 857,416	$ 472	$ 0	$ (29,093)	$ 886,037
Balance (in shares) at Dec. 30, 2017		47,178,346
Exercise of stock options	10,597	$ 3	10,594	0	0
Exercise of stock options (in shares)		261,113
Withholdings from vesting of restricted stock	(6,830)	$ (1)	(6,829)	0	0
Withholdings from vesting of restricted stock (in shares)		(57,554)
Restricted stock activity	0	$ 1	(1)	0	0
Restricted stock activity (in shares)		126,638
Stock-based compensation expense	14,673	$ 0	14,673	0	0
Repurchases of common stock	193,028	$ 19	18,437	0	174,572
Repurchase of common stock (in shares)		(1,879,529)
Cash dividends declared and paid	(83,717)	$ 0	0	0	(83,717)
Comprehensive income	270,322	$ 0	0	(11,746)
Net (loss) income	282,068				282,068
Balance (in shares) at Dec. 29, 2018		45,629,014
Balance at Dec. 29, 2018	869,433	$ 456	0	(40,839)	909,816
Exercise of stock options	14,490	$ 3	14,487	0	0
Exercise of stock options (in shares)		274,960
Withholdings from vesting of restricted stock	(4,328)	$ 0	(4,328)	0	0
Withholdings from vesting of restricted stock (in shares)		(46,429)
Restricted stock activity	0	$ 2	(2)	0	0
Restricted stock activity (in shares)		213,030
Stock-based compensation expense	16,529	$ 0	16,529	0	0
Repurchases of common stock	196,910	$ 21	26,686	0	170,203
Repurchase of common stock (in shares)		(2,107,472)
Cash dividends declared and paid	(89,591)	$ 0	0	0	(89,591)
Comprehensive income	270,507	0	0	6,705
Tax Cuts and Jobs Act, Reclassification from AOCI to Retained Earnings, Tax Effect	0	$ 0	0	(1,500)	1,500
Net (loss) income	$ 263,802				263,802
Balance (in shares) at Dec. 28, 2019	43,963,103	43,963,103
Balance at Dec. 28, 2019	$ 880,130	$ 440	0	(35,634)	915,324
Exercise of stock options	$ 9,008	$ 2	9,006	0	0
Exercise of stock options (in shares)	193,645	193,645
Withholdings from vesting of restricted stock	$ (5,011)	$ 0	(5,011)	0	0
Withholdings from vesting of restricted stock (in shares)		(47,337)
Restricted stock activity	0	$ 1	(1)	0	0
Restricted stock activity (in shares)		145,348
Stock-based compensation expense	12,830	$ 0	12,830	0	0
Repurchases of common stock	45,255	$ 5	928	0	46,178
Repurchase of common stock (in shares)		(474,684)
Cash dividends declared and paid	(26,260)	$ 0	0	0	(26,260)
Comprehensive income	112,591	$ 0	0	2,874
Net (loss) income	$ 109,717				109,717
Balance (in shares) at Jan. 02, 2021	43,780,075	43,780,075
Balance at Jan. 02, 2021	$ 938,033	$ 438	$ 17,752	$ (32,760)	$ 952,603

THE COMPANY	12 Months Ended
THE COMPANY	Jan. 02, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
THE COMPANY	THE COMPANY Carter’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, 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.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Jan. 02, 2021

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of Carter’s, Inc. and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation.

Fiscal Year

The Company’s fiscal year ends on the Saturday in December or January nearest December 31. Every five or six years, our fiscal year includes an additional, or 53rd, week of results. Fiscal 2020, ended on January 2, 2021, contained 53 calendar weeks. Fiscal 2019, ended on December 28, 2019, and fiscal 2018, ended on December 29, 2018, contained 52 calendar weeks.

Certain expenses increased in relationship to the additional revenue from the 53rd week, while other expenses, such as fixed costs and expenses incurred on a calendar-month basis, did not increase. The consolidated gross margin for the additional revenue from the 53rd week is slightly lower than the consolidated gross margin for fiscal 2020 due to increased promotional activity during the 53rd week.

Use of Estimates in the Preparation of the Consolidated Financial Statements

The preparation of these consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

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 $739 million, $773 million and $815 million for the three, six and nine-months ended March 30, 2019, June 29, 2019 and September 28, 2019, respectively, $828 million for the year ended December 28, 2019 and $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, six and nine-months ended March 30, 2019, June 29, 2019 and September 28, 2019 have been presented in previous Form 10-Q filings. The revisions to the year ended December 31, 2019 have been presented in this Form 10-K. Revisions to the three months ended March 31, 2020 will be presented in a future Form 10-Q filing. We will continue to provide supplemental noncash cash flow disclosure information in the notes to the financial statements.

COVID-19

In December 2019, an outbreak of a new strain of coronavirus (“COVID-19”) began in Wuhan, China. In March 2020, the World Health Organization declared COVID-19 a pandemic and former President Trump declared a national emergency. As a result of COVID-19, the Company temporarily closed its retail stores in North America and implemented several actions during fiscal 2020 to enhance liquidity and financial flexibility including the deferral of lease payments, reductions in discretionary

spending, amending its revolving credit facility, issuing $500 million principal amount of senior notes, and suspending dividends and share repurchases.

Beginning in April 2020, the Company suspended rent payments under the leases for our temporarily closed stores in North America and initiated discussions with landlords to obtain rent concessions. The Company considered the Financial Accounting Standards Board’s (“FASB”) recent guidance regarding lease concessions as a result of the effects of the COVID-19 pandemic and has elected to treat these rent concessions as lease modifications. As of January 2, 2021, lease modifications resulting from COVID-19 related rent concessions decreased the Company’s operating lease liabilities by $23.7 million during fiscal 2020. The Company continues to negotiate lease concessions with landlords. As of the end of the third fiscal quarter, the Company resumed making the required rent payments under these leases.

On May 4, 2020, the Company, through its wholly owned subsidiary, The William Carter Company (“TWCC”), amended its revolving credit facility. This amendment provided for, among other things, a waiver of financial covenants through the balance of fiscal year 2020, revised covenant requirements through the third quarter of fiscal year 2021, and the ability to raise additional unsecured financing at the Company’s discretion. Additionally, on May 11, 2020, TWCC issued $500 million principal amount of senior notes at par, bearing interest at a rate of 5.500% per annum, and maturing on May 15, 2025. See Note 8, Long-Term Debt, for further details on the amendment to the revolving credit facility and the issuance of $500 million principal amount of senior notes.

The Company announced in the first half of fiscal 2020, that in connection with the COVID-19 pandemic, it suspended its common stock share repurchase program and its quarterly cash dividend.

The Company also 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 January 2, 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 fiscal 2020, the Company recorded impairments on operating lease assets and other long-lived assets for our underperforming retail stores of $9.0 million, adverse inventory and fabric purchase commitments of $14.7 million, incremental excess inventory reserve related charges of $4.9 million, intangible asset impairments of $26.5 million, and goodwill impairment of $17.7 million. There could be a further material impact to our consolidated financial statements in future reporting periods if, at a future date, the Company determines that these assessments of the magnitude and duration of COVID-19, as well as other factors, were incorrect.

Additional COVID-19 related charges in fiscal 2020 were $21.4 million, which primarily included incremental costs of $12.1 million related to payroll continuation for a period of time for our retail employees and increased employee-related costs at our distribution centers, costs associated with additional protective equipment and cleaning supplies of $8.9 million, and restructuring costs of $2.3 million, partially offset by a payroll tax benefit of $3.5 million.

Foreign Currency Translation and Transactions

Translation Adjustments

The functional currency of substantially all of the Company’s foreign operations is the local currency in each foreign country. Assets and liabilities are translated into U.S. dollars using the current exchange rates in effect at the balance sheet date, while revenues and expenses are translated at the average exchange rates for the period. The resulting translation adjustments are recorded as a component of Accumulated other comprehensive income (loss) within the accompanying consolidated balance sheets.

Transaction Adjustments

The Company also recognizes gains and losses on transactions that are denominated in a currency other than the respective entity’s functional currency. Foreign currency transaction gains and losses also include the impact of intercompany loans with foreign subsidiaries that are marked to market. Foreign currency transaction gains and losses are recognized in earnings, as a separate component of Other expense (income), net, within the consolidated statements of operations. Foreign currency transaction gains and losses related to intercompany loans with foreign subsidiaries that are of a long-term nature are accounted for as translation adjustments and are included in Accumulated other comprehensive income (loss) within the accompanying consolidated balance sheets.

Foreign Currency Contracts

As part of the Company’s overall strategy to manage the level of exposure to the risk of foreign currency exchange rate fluctuations, primarily between the U.S. dollar and the currencies of Canada and Mexico, the Company may use foreign currency forward contracts to hedge purchases that are made in U.S. dollars, primarily for inventory purchases in its Canadian and Mexican operations. As part of this hedging strategy, the Company may use foreign currency forward exchange contracts with maturities of less than 12 months to provide continuing coverage throughout the hedging period. Historically, these contracts were not designated for hedge accounting treatment, and therefore changes in the fair value of these contracts have been recorded in Other (income) expense, net in the Company’s consolidated statements of operations. Such foreign currency gains and losses typically include the mark-to-market fair value adjustments at the end of each reporting period related to open contracts, as well as any realized gains and losses on contracts settled during the reporting period. The fair values of any unsettled currency contracts are included in other current assets or other current liabilities on the Company’s consolidated balance sheet. On the consolidated statement of cash flows, the Company includes all activity, including cash settlement of any contracts, as a component of cash flows from operations.

Cash and Cash Equivalents

The Company considers all highly liquid investments that have original maturities of three months or less to be cash equivalents. Cash and cash equivalents consist of deposit accounts and cash management funds invested in U.S. government instruments. These investments are stated at cost, which approximates fair value. Cash equivalents also include amounts due from third-party financial institutions for credit and debit card transactions; these amounts typically settle in less than five days.

Concentration of Cash Deposits Risk

As of January 2, 2021, the Company had approximately $1.10 billion of cash and cash equivalents in major financial institutions, including approximately $85.8 million in financial institutions located outside of the United States. The Company maintains cash deposits with major financial institutions that exceed the insurance coverage limits provided by the Federal Deposit Insurance Corporation in the U.S. and by similar insurers for deposits located outside the U.S. To mitigate this risk, the Company utilizes a policy of allocating cash deposits among major financial institutions that have been evaluated by the Company and third-party rating agencies as having acceptable risk profiles.

Accounts Receivable

Concentration of Credit Risk

In fiscal 2020, 2019, and 2018, no one customer accounted for 10% or more of the Company’s consolidated net sales.

At January 2, 2021, three wholesale customers each had individual receivable balances in excess of 10% of gross accounts receivable, and the total receivable balances due from these three wholesale customers in the aggregate equaled approximately 69% of total gross trade receivables outstanding. At December 28, 2019, three wholesale customers each had individual receivable balances in excess of 10% of gross accounts receivable, and the total receivable balances due from these three wholesale customers in the aggregate equaled approximately 52% of total gross trade receivables outstanding.

Valuation Accounts for Wholesale Accounts Receivable

Accounts Receivable Reserves

The Company's accounts receivable reserves for wholesale customers include an allowance for expected credit losses and an allowance for chargebacks. The allowance for expected credit losses includes estimated losses resulting from the inability of our customers to make payments. If the financial condition of a customer were to deteriorate, resulting in an impairment of its ability to make payments, an additional allowance could be required. Past due balances over 90 days are reviewed individually for collectibility. The Company’s credit and collections department reviews all other balances regularly. Account balances are charged off against the allowance when it is probable that the receivable will not be recovered. Provisions for the allowance for expected credit losses are reflected in Selling, general and administrative expenses on the consolidated statement of operations and provisions for chargebacks are reflected as a reduction in Net sales on the consolidated statement of operations.

Sales Returns Reserves

Except in very limited instances, the Company does not allow its wholesale customers to return goods to the Company.

Inventories

Inventories, which consist primarily of finished goods, are stated approximately at the lower of cost (first-in, first-out basis for wholesale inventory and average cost for retail inventory) or net realizable value. Obsolete, damaged, and excess inventory is

carried at net realizable value by establishing reserves after assessing historical recovery rates, current market conditions, and future marketing and sales plans. Rebates, discounts, and other cash consideration received from a vendor related to inventory purchases are reflected as reductions in the cost of the related inventory item, and are therefore reflected in cost of sales when the related inventory item is sold.

Leases

At the beginning of fiscal 2019, the Company adopted the provisions of ASC No. 842, Leases (“ASC 842”), using a modified retrospective approach. This approach allows the Company to apply the standard and related disclosures to the financial statements for the period of adoption and to apply the old guidance in the comparative periods.

The standard had a material impact on our consolidated balance sheets, but did not have a material impact on our consolidated income statements or statement of cash flows. The most significant impact was the recognition of right of use (“ROU”) assets and lease liabilities for operating leases. Finance leases are not material to the Company’s consolidated balance sheets, consolidated statements of operations or statements of cash flows.

Financial Presentation

The Company determines if an arrangement is a lease at its inception. Operating leases are included in operating lease assets, current operating lease liabilities, and long-term operating lease liabilities in our consolidated balance sheets.

ROU assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option.

The operating lease ROU asset also includes initial direct costs and excludes lease incentives. Lease expense is recognized on a straight-line basis over the lease term.

Certain of our lease agreements include variable rental payments based on a percentage of retail sales over contractual levels and others include variable rental payments adjusted periodically for inflation. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Policy Elections

Practical Expedient Package - The Company has elected the following expedients and applied them consistently to all leases:

•The Company will not revisit whether a contract is, or contains, a lease under the ASC 842 definition of a lease.

•The lease classification determined under prior guidance will not be reevaluated under ASC 842.

•Previously capitalized initial direct costs under prior guidance will be carried forward. Any initial direct costs after the effective date will be included within the ROU asset under ASC 842.

Portfolio approach - In general, the Company accounts for the underlying leased asset and applies a discount rate at the lease level. However, there are certain non-real estate leases for which the Company utilizes the portfolio method by aggregating similar leased assets based on the underlying lease term.

Non-lease component - The Company has lease agreements with lease and non-lease components. The Company has elected a policy to account for lease and non-lease components as a single component for all asset classes.

Short-term lease - Leases with an initial term of 12 months or less are not recorded on the balance sheets.

Discount rate - As most of the Company's leases do not provide an implicit rate, the Company uses the incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments.

Renewal options - The Company evaluates the inclusion of renewal options on a lease by lease basis. In general, for leased retail real estate, the Company does not include renewal options in the underlying lease term.

Property, Plant, and Equipment

Property, plant, and equipment are stated at cost, less accumulated depreciation and amortization. When fixed assets are sold or otherwise disposed of, the accounts are relieved of the original cost of the assets and the related accumulated depreciation or

amortization and any resulting profit or loss is credited or charged to income. For financial reporting purposes, depreciation and amortization are computed on the straight-line method over the estimated useful lives of the assets as follows: buildings and improvements from 15 to 26 years, retail store fixtures, equipment, and computers from 3 to 10 years. Leasehold improvements and fixed assets purchased under capital lease are amortized over the lesser of the asset life or related lease term. The Company capitalizes the cost of its fixtures designed and purchased for use at major wholesale accounts. The cost of these fixtures is amortized over 3 years.

Internal-Use Software

The Company purchases software licenses from external vendors and also develops software internally using Company employees and consultants. Software license costs, including certain costs to internally develop software, that meet the applicable criteria are capitalized while all other costs are expensed as incurred. Capitalized software is depreciated or amortized on the straight-line method over its estimated useful lives, from 3 to 10 years. If a software application does not include a purchased license for the software, such as a cloud-based software application, the arrangement is accounted for as a service contract. Cloud computing implementation costs incurred in a hosting arrangement that is a service contract and that meet the applicable criteria are capitalized and reported in Prepaid expenses and other current assets on the consolidated balances sheets. Any capitalized costs are amortized over the term of the hosting arrangement, and the expense is presented in the same line item within the consolidated statements of operations as the expense for the service contract's fees.

Goodwill and Other Intangible Assets

Annual Impairment Reviews

The carrying values of the goodwill and indefinite-lived tradename assets are subject to annual impairment reviews which are performed as of the last day of each fiscal year. Additionally, a review for potential impairment is performed whenever significant events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. Significant assumptions in the impairment models include estimates of revenue growth and profitability, terminal values, discount rates, an implied control premium, and, in the case of tradenames, royalty rates.

Goodwill

The Company performs impairment tests of its goodwill at the reporting unit level. Qualitative and quantitative methods are used to assess for impairment, including the use of discounted cash flows (“income approach”) and relevant data from guideline public companies (“market approach”).

Under a qualitative assessment, the Company determines if it is “more likely than not” that the fair value of the reporting unit is less than its carrying value. Qualitative factors may include, but are not limited to: macroeconomic conditions, industry and market considerations, cost factors that may have a negative effect on earnings, overall financial performance, and other relevant entity-specific events. If the Company determines that it is “more likely than not” that the fair value of the reporting unit is less than its carrying value, then a goodwill impairment test using quantitative assessments must be performed. If it is determined that it is “not more likely than not” that the fair value of the reporting unit is less than its carrying value, then no further testing is required and the Company documents the relevant qualitative factors that support the strength in the fair value.

Under a quantitative assessment for goodwill, the Company compares the fair value of a reporting unit to its carrying value, including goodwill. The Company uses the income approach and the market approach to determine the fair value of a reporting unit. The assumptions used in these approaches include revenue growth and profitability, terminal values, discount rates, and an implied control premium. These assumptions are consistent with those of hypothetical marketplace participants. An impairment is recorded for any excess carrying value above the fair value of the reporting unit, not to exceed the carrying value of goodwill.

Due to the decrease in the Company’s market capitalization, lower than expected actual sales, and lower projected sales and profitability, primarily due to the impacts from the outbreak of COVID-19, the Company concluded that impairment indicators existed for the first quarter of fiscal 2020. As a result, during the first quarter of fiscal 2020, the Company conducted interim quantitative impairment assessments of 1) the goodwill ascribed to the Other International reporting unit recorded in connection with the allocation of goodwill to the newly created International segment as a result of the acquisition of Bonnie Togs in 2011 and 2) on the value of the Company’s indefinite-lived OshKosh and Skip Hop tradename assets that was recorded in connection with the acquisition of OshKosh B’Gosh Inc. in July 2005 and Skip Hop Holdings, Inc. in February 2017, respectively.

The goodwill impairment assessment for the Other International reporting unit was performed in accordance with ASC 350, “Intangibles--Goodwill and Other” (“ASC 350”) and compares the carrying value of the Other International reporting unit to its fair value. Consistent with prior practice, the fair value of the Other International reporting unit was determined using the income approach and the market approach. As a result of this assessment, a goodwill impairment charge of $17.7 million was recorded to our Other International reporting unit in the International segment during the first quarter of fiscal 2020. The goodwill impairment charge recorded on our Other International reporting unit included charges of $9.4 million, $5.2 million, and $3.1 million to Skip Hop, Carter’s, and Carter’s Mexico goodwill, respectively. The carrying value of the Company’s goodwill for the Other International reporting unit as of January 2, 2021 was $11.8 million.

Indefinite-lived Tradenames

For indefinite-lived tradenames, the Company may utilize a qualitative assessment, as described above, to determine whether the fair value of an indefinite-lived asset is less than its carrying value. If a quantitative assessment is necessary, the Company determines fair value using a discounted cash flow model that uses the relief-from-royalty method. If the carrying amount exceeds the fair value of the tradename, an impairment charge is recognized in the amount of the excess.

As discussed above, during the first quarter of fiscal 2020, the Company conducted interim quantitative impairment assessments on the value of the Company’s indefinite-lived OshKosh and Skip Hop tradename assets that was recorded in connection with the acquisition of OshKosh B’Gosh Inc. in July 2005 and Skip Hop Holdings, Inc. in February 2017, respectively. The OshKosh and Skip Hop indefinite-lived tradename asset assessments were performed in accordance with ASC 350 and were determined using a discounted cash flow analysis which examined the hypothetical cost savings that accrue as a result of not having to license the tradename from another owner. Based on these assessments, charges of $15.5 million and $11.0 million were recorded during the first quarter of fiscal 2020 on our indefinite-lived OshKosh and Skip Hop tradename assets, respectively. The charge recorded on our indefinite-lived OshKosh tradename asset included charges of $13.6 million, $1.6 million, and $0.3 million 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. The charge recorded on our indefinite-lived Skip Hop tradename asset included charges of $6.8 million, $3.7 million, and $0.5 million 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. The carrying values of the Company’s indefinite-lived OshKosh and Skip Hop tradename assets as of January 2, 2021 were $70.0 million and $15.0 million, respectively.

In the third quarter of fiscal 2019, the Company’s Skip Hop business experienced lower than expected actual and projected sales and profitability due to lower domestic demand, including the loss of a significant customer that declared bankruptcy (Toys “R” Us), lower international demand and higher product costs primarily driven by tariffs imposed on products sourced from China. As a result, the Company conducted an interim impairment assessment in the third quarter of fiscal 2019 on the value of the Company’s indefinite-lived Skip Hop tradename asset that was recorded in connection with the acquisition of Skip Hop Holdings, Inc. in February 2017. The indefinite-lived tradename asset assessment was performed in accordance with ASC 350, “Intangibles--Goodwill and Other” and was determined using a discounted cash flow analysis which examined the hypothetical cost savings that accrue as a result of our ownership of the tradename. Based on this assessment, a charge of $30.8 million was recorded during the third quarter of fiscal 2019 on our indefinite-lived Skip Hop tradename asset. The charge included charges of $19.1 million, $10.5 million, and $1.2 million 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.

Based upon our most recent annual assessment, performed as of January 2, 2021, there were no further impairments in the values of goodwill or indefinite-lived or definite-lived intangible assets. This annual assessment indicated that each reporting unit’s fair value exceeded its carrying value by at least 53%. The annual assessment also indicated that the OshKosh and Skip Hop indefinite-lived tradename assets’ fair value exceeded its carrying value by approximately 10% and 40%, respectively. Sensitivity tests on the OshKosh indefinite-lived tradename asset showed that a 100 basis point increase in the discount rate, a 10% decrease in forecasted revenues, or a 25 basis point decrease in the royalty rate was needed to change the conclusion. Although the Company determined that no further impairment exists for the Company’s goodwill or indefinite-lived or definite-lived intangible assets, these assets could be at risk for impairment should global economic conditions continue to deteriorate as a result of COVID-19.

Impairment of Other Long-Lived Assets

The Company reviews other long-lived assets, including operating lease assets, property, plant, and equipment, and licensing agreements, for impairment whenever events or changes in circumstances indicate that the carrying amount of such an asset may not be recoverable. Management will determine whether there has been a permanent impairment on such assets held for use in the business by comparing anticipated undiscounted future cash flows from the use and eventual disposition of the asset

or asset group to the carrying value of the asset. The amount of any resulting impairment will be calculated by comparing the carrying value to fair value, which may be estimated using the present value of the same cash flows. Long-lived assets that meet the definition of held for sale will be valued at the lower of carrying amount or fair value, less costs to sell.

The impact of the COVID-19 pandemic resulted in a qualitative indication of impairment related to our store long-lived assets. In fiscal 2020, the Company recorded impairment charges of operating lease assets and other long-lived assets for our underperforming retail stores of $9.0 million. The impairment charges were recorded in Selling, general and administrative expenses on the Company’s consolidated statements of operations.

Deferred Debt Issuance Costs

Debt issuance costs associated with the Company’s secured revolving credit facility and senior term notes are deferred and amortized to interest expense over the term of the related debt using the effective interest method. Debt issuance costs associated with Company’s senior notes are presented on the Company’s consolidated balance sheet as a direct reduction in the carrying value of the associated debt liability. Fees paid to lenders by the Company to obtain its secured revolving credit facility are included within Other assets on the Company’s consolidated balance sheets and classified as either current or non-current based on the expiration date of the credit facility.

Fair Value Measurements

The fair value framework requires the Company to categorize certain assets and liabilities into three levels, based upon the assumptions used to price those assets or liabilities. The three levels are defined as follows:


Level 1:			Quoted prices in active markets for identical assets or liabilities.

Level 2:			Quoted prices for similar assets and liabilities in active markets or inputs that are observable.

Level 3:			Unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability.

The Company measures its pension assets, deferred compensation plan investment assets, and any unsettled foreign currency forward contracts at fair value. The Company's cash and cash equivalents, accounts receivable, and accounts payable are short-term in nature. As such, their carrying value approximates fair value.

The carrying values of the Company’s outstanding borrowings are not required to be remeasured and adjusted to the then-current fair values at the end of each reporting period. Instead, the fair values of the Company’s outstanding borrowings are disclosed at the end of each reporting period in Note 8, Long-Term Debt, to the consolidated financial statements. Had the Company been required to remeasure and adjust the carrying values of its outstanding borrowings to fair value at the end of each reporting period, such fair value measurements would have been disclosed as a Level 2 liability in the fair value hierarchy.

Revenue Recognition

At the beginning of fiscal 2018, the Company adopted the provisions of ASC 606 using the full retrospective adoption method.

The Company uses the five-step model to recognize revenue:

1)Identify the contract with the customer;

2)Identity the performance obligation(s);

3)Determine the transaction price;

4)Allocate the transaction price to each performance obligation if multiple obligations exist; and

5)Recognize the revenue when the performance obligations are satisfied

Performance Obligations

The Company identifies each distinct performance obligation to transfer goods (or bundle of goods). The Company recognizes revenue when (or as) it satisfies a performance obligation by transferring control of the goods to the customer. Other than inbound and outbound freight and shipping arrangements, the Company does not use third parties to satisfy its performance obligations in revenue arrangements with customers.

When Performance Obligations Are Satisfied

Wholesale Revenues - The Company typically transfers control upon shipment. However, in certain arrangements where the Company retains the risk of loss during shipment, satisfaction of the performance obligation occurs when the goods reach the customer.

Retail Revenues - For transactions in stores, the Company satisfies its performance obligation at point of sale when the customer takes possession of the goods and tenders payment. For purchases made through the Company's eCommerce channel, revenue is recognized when the goods are physically delivered to the customer.

Loyalty program - Retail customers can earn loyalty points that accumulate towards earning reward certificates that are redeemable for a specified amount off of future purchases for a specified period of time. Points and reward certificates earned by retail customers under the Company’s loyalty program represent a separate performance obligation. For transactions where a customer earns loyalty points, the Company allocates revenue between the goods sold and the loyalty points expected to be earned towards a reward certificate based upon the relative standalone selling price. The revenue that is deferred is recorded within Other current liabilities on the Company’s consolidated balance sheets and then recognized as revenue upon redemption of the reward certificate. Loyalty program breakage is recognized as revenue based on the customer redemption pattern.

Gift Cards - Customer purchases of gift cards are not recognized as revenue until the gift card is redeemed. The revenue that is deferred is recorded within Other current liabilities on the Company’s consolidated balance sheets. Gift card breakage is recognized as revenue based on the customer redemption pattern.

Royalty Revenues - The Company satisfies its performance obligations with licensees over time as customers have the right to use the intellectual property over the contract period.

Significant Payment Terms

Retail customers tender a form of payment, such as cash or a credit/debit card, at point of sale. For wholesale customers and licensees, payment is due based on established terms.

Returns and Refunds

The Company establishes return provisions for retail customers. Except in very limited instances, the Company does not allow its wholesale customers to return goods to the Company.

Significant Judgments

Sale of Goods - The Company relies on shipping terms to determine when performance obligations are satisfied. When goods are shipped to wholesale customers “FOB Shipping Point,” control of the goods is transferred to the customer at the time of shipment if there are no remaining performance obligations. The Company recognizes the revenue once control passes to the customer. For most retail transactions in stores, no significant judgments are involved since revenue is recognized at the point of sale when tender is exchanged and the customer receives the goods. For retail transactions made through the Company's eCommerce channel, revenue is recognized when the goods are physically delivered to the customer. The Company recognizes revenue from omni-channel sales, including buy on-line and pick up in store, buy-on-line, ship-to-store, and buy-on-line, deliver-from-store, when the product is physically delivered to the customer or when the product arrives at the store and has been picked up by the customer.

Royalty Revenues - The Company transfers the right-to-use benefit to the licensee for the contract term and therefore the Company satisfies its performance obligation over time. Revenue recognized for each reporting period is based on the greater of: 1) the royalties owed on actual net sales by the licensee and 2) a minimum royalty guarantee, if applicable.

Transaction Price - The transaction price is the amount of consideration the Company expects to receive under the arrangement. The Company is required to estimate variable consideration (if any) and to factor that estimation into the determination of the transaction price. The Company may offer sales incentives to wholesale and retail customers, including discounts. For retail transactions, the Company has significant experience with return patterns and relies on this experience to estimate expected returns when determining the transaction price.

Standalone Selling Prices - For arrangements that contain multiple performance obligations, the Company allocates the transaction price to each performance obligation on a relative standalone selling price basis.

Costs Incurred to Obtain a Contract - Incremental costs to obtain contracts are not material to the Company.

Policy Elections

In addition to those previously disclosed, the Company has made the following accounting policy elections and practical expedients:

•Portfolio Approach - The Company uses the portfolio approach when multiple contracts or performance obligations are involved in the determination of revenue recognition.

•Taxes - The Company excludes from the transaction price any taxes collected from customers that are remitted to taxing authorities.

•Shipping and Handling Charges - Charges that are incurred before and after the customer obtains control of goods are deemed to be fulfillment costs.

•Time Value of Money - The Company’s payment terms are less than one year from the transfer of goods. Therefore, the Company does not adjust promised amounts of consideration for the effects of the time value of money.

•Disclosure of Remaining Performance Obligations - The Company does not disclose the aggregate amount of the transaction price allocated to remaining performance obligations for contracts that are one year or less in term.

The Company records its cooperative advertising arrangements with certain of its major wholesale customers at fair value. Fair value is determined based upon, among other factors, comparable market analysis for similar advertisements. The Company has included the fair value of these arrangements of approximately $0.5 million for fiscal 2020, $3.1 million for fiscal 2019, and $3.0 million for fiscal 2018 as a component of Selling, general, and administrative expenses on the accompanying consolidated statements of operations, rather than as a reduction of Net sales. Amounts determined to be in excess of the fair value of these arrangements are recorded as a reduction of Net sales.

Costs of Goods Sold and Selling, General and Administrative Expenses

In addition to the cost of product, cost of goods sold include changes to our inventory reserve and expenses related to the merchandising, design, and procurement of product, including inbound freight costs, purchasing and receiving costs, and inspection costs. Also included in costs of goods sold are the costs of shipping eCommerce product to end consumers. For omni-channel transactions, costs of goods sold include the costs of shipping product to end customers or to retail stores.

Retail store occupancy costs, distribution expenses, and generally all expenses other than interest and income taxes are included in Selling, general, and administrative “SG&A”. Distribution expenses that are included in SG&A primarily consist of payments to third-party shippers and handling costs to process product through our distribution facilities, including eCommerce fulfillment costs, and delivery to our wholesale customers and to our retail stores. Distribution expenses included in SG&A totaled $190.7 million, $191.1 million, and $188.9 million for fiscal years 2020, 2019, and 2018, respectively.

Gross Profit

Gross profit is calculated as consolidated net sales less cost of goods sold, and gross margin is calculated as gross profit divided by consolidated net sales. Definitions of gross profit and gross margin vary across the industry and, as such, our metrics may not be comparable to other companies.

Income from Royalties and License Fees

We license our Carter’s, OshKosh, Child of Mine, Just One You, Simple Joys, and Carter's little baby basics brands to partners to expand our product offerings to include bedding, cribs, diaper bags, footwear, gift sets, hair accessories, jewelry, outerwear, paper goods, socks, shoes, swimwear, and toys. These royalties are recorded as earned, based upon the sales of licensed products by licensees and reported as royalty income in the statements of operations.

Advertising Expenses

Costs associated with the production of advertising, such as writing, copy, printing, and other costs, are expensed as incurred. Costs associated with communicating advertising that has been produced, such as magazine costs and eCommerce site banners, are expensed when the advertising event takes place.

Stock-Based Compensation Arrangements

The Company recognizes the cost resulting from all stock-based payment transactions in the financial statements at grant date fair value. Stock-based compensation expense is recognized over the requisite service period, net of estimated forfeitures. During the requisite service period, the Company also recognizes a deferred income tax benefit for the expense recognized for U.S. GAAP. At time of subsequent vesting, exercise, forfeiture, or expiration of an award, the difference between the

Company’s actual income tax deduction, if any, and the previously accrued income tax benefit is recognized in income tax expense/benefit during the current period.

Stock Options

The Company determines the fair value of stock options using the Black-Scholes option pricing model, which requires the use of the following subjective assumptions:

•Volatility - This is a measure of the amount by which a stock price has fluctuated or is expected to fluctuate. The Company uses actual monthly historical changes in the market value of its stock covering the expected life of options being valued. An increase in the expected volatility will increase the fair value of the stock option and related compensation expense.

•Risk-free interest rate - This is the U.S. Treasury rate as of the grant date having a term equal to the expected term of the stock option. An increase in the risk-free interest rate will increase the fair value of the stock option and related compensation expense.

•Expected term - This is the period of time over which the stock options granted are expected to remain outstanding and is based on historical experience and estimated future exercise behavior. Separate groups of employees that have similar historical exercise behavior are considered separately for valuation purposes. An increase in the expected term will increase the fair value of the stock option and the related compensation expense.

•Dividend yield - The Company estimates a dividend yield based on the current dividend amount as a percentage of the current stock price. An increase in the dividend yield will decrease the fair value of the stock option and the related compensation expenses.

•Forfeitures - The Company estimates forfeitures of stock-based awards based on historical experience and expected future activity.

Changes in these subjective assumptions can materially affect the estimate of fair value of stock-based compensation expense and the related amount recognized in the consolidated statements of operations.

Time-Based Restricted Stock Awards

The fair value of time-based restricted stock awards is determined based on the quoted closing price of the Company's common stock on the date of grant and is recognized as compensation expense over the vesting term of the awards, net of estimated forfeitures.

Performance-Based Restricted Stock Awards

The Company accounts for its performance-based restricted stock awards based on the quoted closing price of the Company's common stock on the date of grant and records stock-based compensation expense over the vesting term of the awards based on the probability that the performance criteria will be achieved, net of estimated forfeitures. The Company reassesses the probability of vesting at each reporting period and adjusts stock-based compensation expense based on its probability assessment.

Stock Awards

The fair value of stock granted to non-management board members is determined based on the quoted closing price of the Company’s common stock on the date of grant. The Company records the stock-based compensation expense immediately as there are no vesting terms.

Income Taxes

The accompanying consolidated financial statements reflect current and deferred tax provisions, in accordance with ASC 740, Income Taxes. The deferred tax provision is determined under the liability method. Deferred tax assets and liabilities are recognized based on differences between the book and tax basis of assets and liabilities using presently enacted tax rates. Deferred tax assets are a component of non-current Other assets in the Company’s consolidated balance sheet. Valuation allowances are established when it is “more likely than not” that a deferred tax asset will not be recovered. The provision for income taxes is the sum of the amount of income taxes paid or payable for the year as determined by applying the provisions of enacted tax laws to the taxable income for that year, the net change during the year in deferred tax assets and liabilities, and the net change during the year in any valuation allowances.

The Company assesses its income tax positions and records tax benefits for all years subject to examination based upon management’s evaluation of the facts, circumstances, and information available at the reporting dates. A company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. If it is more likely than not that a tax position would not be sustained, then no tax benefit would be recognized. Where applicable, associated interest and penalties are also recorded. Interest is recorded as a component of Interest expense and penalties, if any, are recorded within the provision for incomes taxes in the consolidated statements of operations and are classified on the consolidated balance sheets with the related liability for uncertain tax contingency liabilities.

Supplemental Cash Flow Information

Interest paid in cash approximated $55.1 million, $36.5 million, and $33.6 million for fiscal years 2020, 2019, and 2018, respectively. Income taxes paid in cash approximated $54.7 million, $67.6 million and $55.9 million for fiscal years 2020, 2019, and 2018, respectively.

Additions to property, plant and equipment of approximately $6.0 million, $1.2 million, and $1.9 million were excluded from capital expenditures on the Company’s consolidated statements of cash flows for fiscal years 2020, 2019, and 2018, respectively, since these amounts were accrued and unpaid at the end of each respective fiscal year.

Earnings Per Share

The Company calculates basic and diluted net income per common share under the two-class method for unvested share-based payment awards that contain participating rights to dividends or dividend equivalents (whether paid or unpaid).

Basic net income per share is calculated by dividing net income for the period by the weighted-average common shares outstanding for the period. Diluted net income per share includes the effect of dilutive instruments and uses the average share price for the period in determining the number of shares that are to be added to the weighted-average number of shares outstanding.

Open Market Repurchases of Common Stock

Shares of the Company’s common stock that are repurchased by the Company through open market transactions are retired. Through the end of fiscal 2020, all such open market repurchases have been at prices that exceeded the par value of the repurchased common stock, and the amounts of the purchase prices that exceeded par value were charged to additional paid-in capital or to retained earnings if the balance in additional paid-in capital was not sufficient.

Employee Benefit Plans

The Company has several defined benefit plans. Various actuarial methods and assumptions are used in determining net pension and post-retirement costs and obligations. Key assumptions include the discount rate used to determine the present value of future benefits and the expected long-term rate of return on plan assets. The over-funded or under-funded status of the defined benefit plans is recorded as an asset or liability on the consolidated balance sheet. Any service costs that arise during the period are presented in the same statement line item as other employee compensation on the consolidated statement of operations. All other components of current period costs related to defined benefit plans, such as prior service costs and actuarial gains and losses, are presented in Other (income) expense, net on the consolidated statement of operations. The actuarial gains or losses that arise during the period are recognized as a component of comprehensive income, net of tax. These costs are then subsequently recognized as components of net periodic benefit cost in the consolidated statements of operations. Under the provisions of ASU No. 2015-04, Practical Expedient for the Measurement Date of an Employer’s Defined Benefit Obligation and Plan Assets, the Company is permitted to use December 31 of each year, as opposed to the Company’s last day of each fiscal year, as an alternate measurement date for its defined benefit plans.

Facility Closure and Severance Costs

The Company records severance costs when the appropriate notifications have been made to affected employees or when the decision is made, if the benefits are contractual. When employees are required to work for a period before termination, the severance costs are recognized over the required service period. Relocation and recruitment costs are expensed as incurred. For operating leases, lease termination costs are recognized at fair value at the date the Company ceases to use the leased property. Useful lives assigned to fixed assets at the facility to be closed are revised based on the specifics of the exit plan, resulting in accelerated depreciation expense.

Seasonality

The Company experiences seasonal fluctuations in its sales and profitability due to the timing of certain holidays and key retail shopping periods, typically resulting in lower sales and gross profit in the first half of its fiscal year. Accordingly, the Company’s results of operations during the first half of the year may not be indicative of the results for the full year.

Recent Accounting Pronouncements

Adopted in Fiscal 2020

Credit Losses (ASU 2016-13)

At the beginning of fiscal 2020, the Company adopted Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). This new guidance changed how entities account for credit impairment for trade and other receivables, as well as for certain financial assets and other instruments. ASU 2016-13 replaced the previous “incurred loss” model with an “expected loss” model, that requires an entity to recognize a loss (or allowance) upon initial recognition of the asset that reflects all future events that will lead to a loss being realized, regardless of whether it is probable that the future event will occur. The Company estimates current expected credit losses based on collection history and management’s assessment of the current economic trends, business environment, customers’ financial condition, accounts receivable aging, and customer disputes that may impact the level of future credit losses. The effect of the adoption of ASU 2016-13 was not material to the Company's consolidated financial statements.

Goodwill Impairment Testing (ASU 2017-04)

At the beginning of fiscal 2020, the Company adopted ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). ASU 2017-04 eliminated the requirement to calculate the implied fair value of goodwill to measure a goodwill impairment charge. Instead, entities will record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value. Any impairment charge will be limited to the amount of goodwill allocated to an impacted reporting unit. The effect of the adoption of ASU 2017-04 had no impact to the Company’s consolidated financial statements. During the first quarter of fiscal 2020, the Company conducted an interim quantitative impairment assessment on the goodwill ascribed to the Other International reporting unit. As a result of this assessment and based on the application of ASU 2017-04, a goodwill impairment charge of $17.7 million was recorded to our Other International reporting unit. See Note 6, Goodwill and Other Intangible Assets, for further details on the impairment charge and valuation methodology.

Simplifying the Accounting for Income Taxes (ASU 2019-12)

In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), as part of its overall simplification initiative to reduce costs and complexity of applying accounting standards while maintaining or improving the usefulness of the information provided to users of financial statements. Amendments include removal of certain exceptions to the general principles of Topic 740, “Income Taxes,” and simplification in several other areas. ASU 2019-12 is effective for annual reporting periods beginning after December 15, 2020, and interim periods therein, with early adoption permitted. The Company elected to early adopt this guidance in the first quarter of fiscal 2020. The Company retrospectively adopted the provision related to the classification of taxes partially based on income and has determined that the adoption of this standard did not have a material impact on its prior period financial statements. The provisions related to intraperiod tax allocation and interim recognition of enactment of tax laws are being adopted on a prospective basis. The effect of the adoption of ASU 2019-12 was not material to the Company’s consolidated financial statements.

To Be Adopted After Fiscal 2020

Reference Rate Reform (ASU 2020-04)

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). ASU 2020-04 provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The optional guidance is provided to ease the potential burden of accounting for reference rate reform. ASU 2020-04 is effective for all entities as of March 12, 2020 through December 31, 2022. The Company is currently evaluating the effect of adopting ASU 2020-04, but does not expect adoption will have a material impact on the Company’s financial statements.

REVENUE RECOGNITION

12 Months Ended

Jan. 02, 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 customers. The Company also earns royalties from its licensees. Disaggregated revenues from these sources for fiscal years 2020, 2019, and 2018 were as follows:


	Fiscal year ended January 2, 2021 (53 weeks)
(dollars in thousands)	U.S. Retail		U.S. Wholesale		International		Total
Wholesale channel	$	—	$	996,088	$	120,244	$	1,116,332
Direct-to-consumer	1,671,644		—		236,358		1,908,002

	$	1,671,644	$	996,088	$	356,602	$	3,024,334

Royalty income	$	8,732	$	13,120	$	4,424	$	26,276


	Fiscal year ended December 28, 2019 (52 weeks)
(dollars in thousands)	U.S. Retail		U.S. Wholesale		International		Total
Wholesale channel	$	—	$	1,205,646	$	163,793	$	1,369,439
Direct-to-consumer	1,884,150		—		265,697		2,149,847

	$	1,884,150	$	1,205,646	$	429,490	$	3,519,286

Royalty income	$	12,990	$	17,670	$	3,977	$	34,637


	Fiscal year ended December 29, 2018 (52 weeks)
(dollars in thousands)	U.S. Retail		U.S. Wholesale		International		Total
Wholesale channel	$	—	$	1,180,687	$	163,637	$	1,344,324
Direct-to-consumer	1,851,193		—		266,752		2,117,945

	$	1,851,193	$	1,180,687	$	430,389	$	3,462,269

Royalty income	$	12,877	$	22,511	$	3,542	$	38,930

Accounts Receivable from Customers and Licensees

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


(dollars in thousands)	January 2, 2021		December 28, 2019
Trade receivables from wholesale customers, net(1)	$	180,830	$	239,059
Royalties receivable	5,733		6,982
Tenant allowances and other receivables	12,315		16,247
Total gross receivables	$	198,878	$	262,288
Less: Wholesale accounts receivable reserves(1)(2)	(12,366)		(11,283)
Accounts receivable, net	$	186,512	$	251,005

(1)The Company reclassified $1.7 million of customer support related items from Wholesale accounts receivable reserves into Trade receivables from wholesale customers, net for the period ended December 28, 2019.

(2)Includes allowance for credit losses of $5.9 million and $6.4 million for the periods ended January 2, 2021 and December 28, 2019, respectively.

Information regarding Wholesale accounts receivable reserves is as follows:


(dollars in thousands)	Wholesale accounts receivable reserves
Balance at December 30, 2017	$	13,736
Additional provisions	30,280

Charges to reserve	(32,150)
Balance at December 29, 2018	$	11,866
Additional provisions	9,047
Charges to reserve	(7,939)
Reclassification to Trade receivables(1)	$	(1,691)
Balance at December 28, 2019	$	11,283
Additional provisions	9,625
Charges to reserve(2)	(8,542)
Balance at January 2, 2021	$	12,366

(2)Charges to the reserve include total write-offs of $6.5 million related to the bankruptcy of customers during fiscal 2020.

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)	January 2, 2021		December 28, 2019
Contract liabilities-current:
Unredeemed gift cards	$	18,300	$	17,563
Unredeemed customer loyalty rewards	5,241		5,615
Carter’s credit card - upfront bonus(1)	714		714
Total contract liabilities - current(2)	$	24,255	$	23,892

Contract liabilities - non-current	$	2,857	$	3,571
Total contract liabilities	$	27,112	$	27,463

(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 in 2021.

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

Composition of Contract Liabilities

Unredeemed gift cards - the Company is obligated to transfer goods in the future to customers who have purchased gift cards. Periodic changes in the gift card contract liability result from the redemption of gift cards by customers and the recognition of estimated breakage revenue for those gift card balances that are not expected to be redeemed. The majority of our gift cards do not have an expiration date; however, all outstanding gift card balances are classified by the Company as current liabilities since gift cards are redeemable on demand by the valid holder. The majority of the Company’s gift cards are redeemed within one year of issuance.

Unredeemed loyalty rewards - points and reward certificates earned by customers under the Company’s loyalty program represent obligations of the Company to transfer goods to the customer upon redemption. Periodic changes in the loyalty program contract liability result from reward certificate redemptions and expirations. The earning and redemption cycles for our loyalty program are under one year in duration.

- 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

12 Months Ended

Jan. 02, 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 January 2, 2021, the Company’s finance leases were not material to the consolidated balance sheets, consolidated statements of operations or statement of cash flows.

As a result of the COVID-19 pandemic, during the second quarter of fiscal 2020 the Company suspended rent payments under the leases for our temporarily closed stores in North America. The Company resumed making the required rent payments under these leases in the third quarter of fiscal 2020.

Additionally, as a result of the effects COVID-19 pandemic, the Company renegotiated approximately 725 lease agreements with landlords. Lease modifications resulting from COVID-19 related rent concessions increased the Company’s operating lease liabilities by $23.7 million during fiscal 2020, primarily due to addition of the deferred lease payments to the updated lease terms and due to a decrease in the discount rates used for the remeasurement of the lease liabilities. The Company continues to negotiate lease concessions with landlords.

In fiscal 2020, the Company recorded operating lease asset impairment charges totaling $7.4 million related to underperforming stores primarily as a result of decreased net revenues and cash flow projections resulting from the COVID-19 disruption and other facility and office closures. See Note 15, Fair Value Measurements, for further details on the fair value calculations for operating lease assets for the retail stores.

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


	For the fiscal year ended
(dollars in thousands)	January 2, 2021		December 28, 2019
Operating lease cost	$	180,056	$	179,982




Variable lease cost (*)	71,971		63,043
Net lease cost	$	252,027	$	243,025

(*)Includes operating lease impairment charges, and short-term leases, which are immaterial.

Supplemental balance sheet information related to leases was as follows:



	January 2, 2021	December 28, 2019
Weighted average remaining operating lease term (years)	5.4	6.0
Weighted average discount rate for operating leases	3.33%	4.35%

Cash paid for amounts included in the measurement of operating lease liabilities in fiscal 2020 and fiscal 2019 was $161.7 million and $193.5 million, respectively.

Non-cash transactions to recognize operating assets and liabilities for new leases in fiscal 2020 and fiscal 2019 were $62.6 million and $110.0 million, respectively.

As of January 2, 2021, the maturities of lease liabilities were as follows:


(dollars in thousands)	Operating leases
2021	$	206,814
2022	159,350
2023	130,646
2024	105,515
2025	77,134
After 2025	129,195
Total lease payments	$	808,654
Less: Interest	(69,005)
Present value of lease liabilities(*)	$	739,649

(*)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 January 2, 2021, the minimum rental commitments for additional operating lease contracts that have not yet commenced, primarily for retail stores, are $10.9 million. These operating leases will commence between fiscal year 2021 and fiscal year 2023 with lease terms of 7 years to 11 years.

Rent expense under operating leases (including properties and computer and office equipment) was approximately $165.6 million for the fiscal year ended December 29, 2018

PROPERTY, PLANT, AND EQUIPMENT

12 Months Ended

Jan. 02, 2021

Property, Plant and Equipment [Abstract]

PROPERTY, PLANT, AND EQUIPMENT

Property, plant, and equipment, net consists of the following:


(dollars in thousands)	January 2, 2021		December 28, 2019
Land, building, and leasehold improvements	$	358,121	$	363,428
Fixtures, equipment, and computer hardware	308,260		297,930
Computer software	159,558		161,104
Marketing fixtures	9,819		11,160
Construction in progress	10,567		10,394
	846,325		844,016
Accumulated depreciation and amortization	(583,980)		(523,848)
Total	$	262,345	$	320,168

Depreciation and amortization expense related to property, plant, and equipment was approximately $90.3 million, $92.2 million, and $85.9 million for fiscal years 2020, 2019, and 2018, respectively.

GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Jan. 02, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER 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 29, 2018	$	83,934	$	74,454	$	68,713	$	227,101



Foreign currency impact	—		—		1,925		1,925
Balance at December 28, 2019	$	83,934	$	74,454	$	70,638	$	229,026


Goodwill impairment(1)	—		—		(17,742)		(17,742)
Foreign currency impact	—		—		492		492
Balance at January 2, 2021(2)	$	83,934	$	74,454	$	53,388	$	211,776

(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:


		January 2, 2021						December 28, 2019
(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(1)	Indefinite	70,000		—		70,000		85,500		—		85,500
Skip Hop tradename(2)(3)	Indefinite	15,000		—		15,000		26,000		—		26,000
Finite-life tradenames	5 - 20 years	3,911		1,251		2,660		3,911		1,002		2,909



Total tradenames, net		$	309,144	$	1,251	$	307,893	$	335,644	$	1,002	$	334,642

Skip Hop customer relationships	15 years	$	47,300	$	11,834	$	35,466	$	47,300	$	8,657	$	38,643
Carter’s Mexico customer relationships	10 years	3,108		1,064		2,044		3,258		775		2,483
Total customer relationships, net		$	50,408	$	12,898	$	37,510	$	50,558	$	9,432	$	41,126

(1)In 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 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.

(3)In fiscal 2019, a charge of $19.1 million, $10.5 million, and $1.2 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.

The carrying values of goodwill and indefinite-lived tradename assets are subject to annual impairment reviews as of the last day of each fiscal year. Between annual assessments, impairment reviews may also be triggered by any significant events or changes in circumstances affecting our business. Due to the decrease in the Company’s market capitalization, lower than expected actual sales, and lower projected sales and profitability, primarily due to the impacts from the outbreak of COVID-19, the Company concluded that impairment indicators existed for the first quarter of fiscal 2020. As a result, during the first quarter of fiscal 2020, the Company conducted interim quantitative impairment assessments of 1) the goodwill ascribed to the Other International reporting unit recorded in connection with the allocation of goodwill to the newly created International segment as a result of the acquisition of Bonnie Togs in 2011 and 2) on the value of the Company’s indefinite-lived OshKosh and Skip Hop tradename assets that was recorded in connection with the acquisition of OshKosh B’Gosh Inc. in July 2005 and Skip Hop Holdings, Inc. in February 2017, respectively.

The goodwill impairment assessment for the Other International reporting unit was performed in accordance with ASC 350, “Intangibles--Goodwill and Other” (“ASC 350”) and compares the carrying value of the Other International reporting unit to its fair value. Consistent with prior practice, the fair value of the Other International reporting unit was determined using discounted cash flows (“income approach”) and relevant data from guideline public companies (“market approach”). As a result of this assessment, a goodwill impairment charge of $17.7 million was recorded to our Other International reporting unit in the International segment during the first quarter of fiscal 2020. The goodwill impairment charge recorded on our Other International reporting unit included charges of $9.4 million, $5.2 million, and $3.1 million to Skip Hop, Carter’s, and Carter’s Mexico goodwill, respectively. The carrying value of the Company’s goodwill for the Other International reporting unit as of January 2, 2021 was $11.8 million.

The OshKosh and Skip Hop indefinite-lived tradename asset assessments were performed in accordance with ASC 350 and were determined using a discounted cash flow analysis which examined the hypothetical cost savings that accrue as a result of not having to license the tradename from another owner. Based on these assessments, charges of $15.5 million and $11.0 million were recorded during the first quarter of fiscal 2020 on our indefinite-lived OshKosh and Skip Hop tradename assets, respectively. The charge recorded on our indefinite-lived OshKosh tradename asset included charges of $13.6 million, $1.6 million, and $0.3 million 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. The charge recorded on our indefinite-lived Skip Hop tradename asset included charges of $6.8 million, $3.7 million, and $0.5 million 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. The carrying values of the Company’s indefinite-lived OshKosh and Skip Hop tradename assets as of January 2, 2021 were $70.0 million and $15.0 million, respectively.

Based upon our most recent annual assessment, performed as of January 2, 2021, there were no further impairments in the values of goodwill or indefinite-lived or definite-lived intangible assets. Although the Company determined that no further impairment exists for the Company’s goodwill or indefinite-lived or definite-lived intangible assets, these assets could be at risk for impairment should global economic conditions continue to deteriorate as a result of COVID-19.

Changes in the carrying values between comparative periods for goodwill related to the International segment were due to fluctuations in the foreign currency exchange rates between the Canadian and U.S. dollar that were used in the remeasurement process for preparing the Company’s consolidated financial statements. The changes in the carrying values of goodwill for Skip Hop and Carter’s Mexico and the changes in the carrying value of customer relationships for Carter’s Mexico, including the related accumulated amortization, that were not attributable to amortization expense was also impacted by foreign currency exchange rate fluctuations.

Amortization expense for intangible assets subject to amortization was approximately $3.7 million for each of fiscal years 2020, 2019, and 2018.

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


(dollars in thousands)	Amortization expense
2021	$	3,737
2022	$	3,737
2023	$	3,695
2024	$	3,665
2025	$	3,665

ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME

12 Months Ended

Jan. 02, 2021

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME

Accumulated other comprehensive (loss) income is summarized as follows:


(dollars in thousands)	Pension liability adjustments		Post-retirement liability adjustments		Cumulative translation adjustments		Accumulated other comprehensive (loss) income
Balance at December 30, 2017	$	(9,281)	$	1,473	$	(21,285)	$	(29,093)
Fiscal year 2018 change	(281)		214		(11,679)		(11,746)
Balance at December 29, 2018	(9,562)		1,687		(32,964)		(40,839)
Reclassification of tax effects(*)	(1,880)		380		—		(1,500)
Fiscal year 2019 change	746		(483)		6,442		6,705
Balance at December 28, 2019	(10,696)		1,584		(26,522)		(35,634)

Fiscal year 2020 change	(2,197)		(144)		5,215		2,874
Balance at January 2, 2021	$	(12,893)	$	1,440	$	(21,307)	$	(32,760)

(*)In fiscal 2019, the Company reclassified $1.5 million of tax benefits from accumulated other comprehensive loss to retained earnings for the tax effects resulting from the December 22, 2017 enactment of the Tax Cut and Jobs Act in accordance with the adoption of ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.

As of January 2, 2021 and December 28, 2019, the cumulative tax effect on the pension liability adjustments were $4.0 million and $3.3 million, respectively. As of January 2, 2021 and December 28, 2019, the cumulative tax effect on the post-retirement liability adjustments were approximately $0.5 million and $0.5 million, respectively.`

For the fiscal years ended January 2, 2021 and December 28, 2019, amounts reclassified from accumulated other comprehensive loss to the consolidated statements of operations consisted of amortization of actuarial gains and losses related to the Company’s defined benefit retirement plans. Such amortization amounts are included in the net periodic cost or benefit recognized for these plans during the respective fiscal year. For additional information, see Note 11, Employee Benefit Plans, to the consolidated financial statements.

LONG-TERM DEBT

12 Months Ended

Jan. 02, 2021

Debt Disclosure [Abstract]

LONG-TERM DEBT

Long-term debt consisted of the following:


(dollars in thousands)	January 2, 2021		December 28, 2019
5.500% Senior Notes due 2025	$	500,000	$	—
5.625% Senior Notes due 2027	500,000		500,000
Total senior notes	$	1,000,000	$	500,000
Less: unamortized issuance-related costs for senior notes	(10,470)		(5,328)
Senior notes, net	$	989,530	$	494,672
Secured revolving credit facility	—		100,000
Total long-term debt, net	$	989,530	$	594,672

Secured Revolving Credit Facility

To improve the Company’s cash position in light of the uncertainty and disruption related to COVID-19, the Company drew $639.0 million under its secured revolving credit facility in the month of March 2020, and in May 2020 repaid $500 million of the outstanding borrowings with the net proceeds of a new $500 million senior notes offering, as discussed below, and cash on hand. During the third quarter of fiscal 2020, the Company repaid the remainder of its outstanding borrowings under its secured revolving credit facility with cash on hand. As of January 2, 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 December 28, 2019, the Company had $100.0 million in outstanding borrowings under its secured revolving credit facility, exclusive of $5.0 million of outstanding letters of credit. As of January 2, 2021 and December 28, 2019, there was approximately $745.0 million and $645.0 million available for future borrowing, respectively. All outstanding borrowings under the Company’s secured revolving credit facility are classified as non-current liabilities on the Company’s consolidated balance sheets due to contractual repayment terms under the credit facility.

Terms of the Secured Revolving Credit Facility

On August 25, 2017, the Company’s wholly owned subsidiary, The William Carter Company (“TWCC”) and the syndicate of lenders entered into a fourth amended and restated secured revolving credit agreement, which provided for, among other things:

•An extension of the term of the facility to August 25, 2022.

•An increase in the aggregate credit line to $750 million which includes a $650 million U.S. dollar facility and a $100 million multicurrency facility denominated in U.S. dollars, Canadian dollars, Euros, Pounds Sterling, or other currencies agreed to by the applicable lenders. The $650 million U.S. dollar facility is inclusive of a $100 million sub-limit for letters of credit and a swing line sub-limit of $70 million. The $100 million multicurrency facility is inclusive of a $40 million sub-limit for letters of credit and a swing line sub-limit of $15 million. In addition, the amendment provided for incremental borrowing facilities up to $425 million, which are comprised of an incremental $350 million U.S. dollar revolving credit facility and an incremental $75 million multicurrency revolving credit facility. The incremental U.S. dollar revolving credit facility can increase to an unlimited borrowing amount so long as the consolidated first lien leverage ratio (as defined in the secured revolving credit facility) does not exceed 2.25:1.00.

•Covenants that restrict the Company’s ability to, among other things: (i) create or incur liens, debt, guarantees or other investments, (ii) engage in mergers and consolidations, (iii) pay dividends or other distributions to, and redemptions and repurchases from, equity holders, (iv) prepay, redeem or repurchase subordinated or junior debt, (v) amend organizational documents, and (vi) engage in certain transactions with affiliates.

•Lease Adjusted Leverage Ratio (defined as, with certain adjustments, the ratio of the Company’s consolidated indebtedness plus six times rent expense, as defined, to consolidated net income before interest, taxes, depreciation,

amortization, and rent expense (“EBITDAR”)) and the Consolidated Fixed Charge Coverage Ratio (defined as, with certain adjustments, the ratio of consolidated EBITDAR to consolidated fixed charges (defined as interest plus rent expense)) covenants, which were amended by Amendment No.2 (as defined and described below).

•That certain covenants fall away and that the liens over the collateral securing each of the Company and certain subsidiaries’ collective obligations are released following, among other things, the achievement of, and during the maintenance of, investment grade ratings by Moody’s Investor Services, Inc. and Standard & Poor’s Ratings Services.

Under the fourth amended and restated secured revolving credit facility, TWCC and its domestic subsidiaries have granted to the collateral agent, for the benefit of the lenders, valid and perfected first priority security interests in substantially all of their present and future assets, excluding certain customary exceptions, and guarantee the obligations of the borrowers. In addition, The Genuine Canadian Corp., as Canadian borrower, and Carter’s Holdings B.V., as Dutch borrower, have each guaranteed the obligations of the other.

On September 21, 2018, TWCC and a syndicate of lenders entered into Amendment No. 1 to its fourth amended and restated credit agreement that, among other things, extended the term of the facility from August 25, 2022 to September 21, 2023.

On May 4, 2020, TWCC entered into Amendment No.2 to its fourth amended and restated credit agreement (“Amendment No. 2”). Amendment No. 2 provided for, among other things, access to additional capital and increased flexibility under financial maintenance covenants, which the Company sought in part due to the unforeseen negative effects of the COVID-19 pandemic.

In particular, Amendment No. 2 provided that the Company may issue additional debt securities in an aggregate principal amount of up to $500 million on or prior to the last day of fiscal 2020 (the “Post-Amendment Debt Issuance”), and must use half of the net cash proceeds from the Post-Amendment Debt Issuance to repay outstanding borrowings under the Secured Revolving Credit Facility (or, if such outstanding borrowings do not exceed an amount equal to half of such net cash proceeds, the amount necessary to repay the borrowings in full). The aggregate gross principal amount outstanding of any Post-Amendment Debt issuance will not count as Consolidated Indebtedness for purposes of leverage determinations under the Secured Revolving Credit Agreement to the extent that the Company’s and certain other subsidiaries’ on-hand cash and cash equivalents is at least equal to the aggregate principal gross amount outstanding of that issuance. On May 11, 2020, TWCC issued $500 million principal amount of senior notes at par, bearing interest at a rate of 5.500% per annum, and maturing on May 15, 2025, as more fully described below.

Additionally, Amendment No.2 provided that:

•The Lease Adjusted Leverage Ratio and the Consolidated Fixed Charge Coverage Ratio covenants were waived during the period from and including the second fiscal quarter of 2020 through and including the fourth fiscal quarter of 2020, and thereafter,

◦the Lease Adjusted Leverage Ratio was set at 5.50:1.00 for the first fiscal quarter of 2021 and, during the remainder of 2021, gradually steps down to 4.00:1.00 for the fourth fiscal quarter of 2021 and, subject to the consummation of a Material Acquisition (as defined in Amendment No.2), thereafter.

◦the Consolidated Fixed Charge Coverage Ratio was set at 1.25:1.00 for the first fiscal quarter of 2021 and, during the remainder of 2021 and, gradually steps back up to 1.85:1.00 for the fourth fiscal quarter of 2021 and, subject to the consummation of a Material Acquisition, thereafter.

•During the period from May 4, 2020 through the date the Company delivers its financial statements and associated certificates relating to the third fiscal quarter of 2021 (the “Restricted Period”), the Company must maintain a minimum liquidity (defined as cash-on-hand plus availability under its secured revolving credit facility) on the last day of each fiscal month of at least $700 million.

•During the Restricted Period, the Company must demonstrate a business need for revolving borrowings if it maintains more than $700 million of cash on-hand at the time of the draw, subject to certain exceptions.

•During Restricted Period, the availability of certain exceptions to the lien, investment, indebtedness, and restricted payment negative covenants (including those related to dividend payments and share repurchases) are limited or removed, and any incremental credit extensions and the possibility of collateral and covenant release periods are suspended.

•During the Restricted Period, interest rate margins applicable to the secured revolving credit facility were initially 2.125% for LIBOR rate loans (which may be adjusted based on a leverage-based pricing grid ranging from 1.125% to 2.375%) and 1.125% for base rate loans (which may be adjusted based on a leverage-based pricing grid ranging from 0.125% to 1.375%). Amendment No. 2 also provided for a commitment fee initially equal to 0.35% per annum, and

ranging thereafter from 0.15% per annum to 0.40% per annum based upon a leverage-based pricing grid, which is payable quarterly in arrears with respect to the average daily unused portion of the revolving loan commitments.

Approximately $1.2 million, including both bank fees and other third party expenses, has been capitalized in connection with Amendment No. 2 and is being amortized over the remaining term of the secured revolving credit facility.

As of January 2, 2021, the interest rate margins applicable to the amended revolving credit facility were 1.625% for LIBOR (London Interbank Offered Rate) rate loans and 0.625% for base rate loans. There were no U.S. dollar borrowings or foreign currency borrowings outstanding on January 2, 2021. As of December 28, 2019, U.S. dollar borrowings outstanding under the secured revolving credit facility accrued interest at a LIBOR rate plus the applicable base rate, which resulted in a weighted-average borrowing rate of 3.42%. There were no Canadian borrowings outstanding on January 2, 2021 or December 28, 2019.

As of January 2, 2021, the Company was in compliance with its financial and other covenants under the secured revolving credit facility.

Senior Notes

2020 Issuance of Senior Notes

On May 11, 2020, TWCC issued $500 million principal amount of senior notes at par, bearing interest at a rate of 5.500% per annum, and maturing on May 15, 2025, all of which were outstanding as of January 2, 2021. TWCC received net proceeds from the offering of the senior notes of approximately $494.5 million, after deducting underwriting fees, which TWCC used to repay borrowings outstanding under the Company’s secured revolving credit facility. Approximately $6.5 million, including both bank fees and other third party expenses, has been capitalized in connection with the issuance and is being amortized over the term of the senior notes.

The senior notes are unsecured and are fully and unconditionally guaranteed by Carter’s, Inc. and certain domestic subsidiaries of TWCC. The guarantor subsidiaries are 100% owned directly or indirectly by Carter’s, Inc. and all guarantees are joint, several and unconditional.

On and after May 15, 2022, TWCC may redeem all or part of the senior notes at the redemption prices (expressed as percentages of principal amount of the senior notes to be redeemed) set forth below, plus accrued and unpaid interest. The redemption price is applicable when the redemption occurs during the twelve-month period beginning on May 15 of each of the years indicated is as follows:


Year	Percentage
2022	102.75	%
2023	101.38	%
2024 and thereafter	100.00	%

2019 Redemption and Issuance of Senior Notes

On March 14, 2019, TWCC redeemed $400 million principal amount of senior notes, bearing interest at a rate of 5.25% per annum, and maturing on August 15, 2021, pursuant to the optional redemption provisions of the notes, which required that TWCC pay the outstanding principal plus accrued interest and an early redemption premium of 1.31% of the outstanding principal amounts of the senior notes. This debt redemption resulted in a loss on extinguishment of debt of $7.8 million, consisting of $5.2 million of early redemption premiums and $2.6 million of unamortized debt issuance costs.

Concurrently, TWCC issued $500 million principal amount of senior notes at par, bearing interest at a rate of 5.625% per annum, and maturing on March 15, 2027. TWCC received net proceeds from the offering of the senior notes of approximately $494.8 million, after deducting underwriting fees and other expenses, which TWCC used to redeem the senior notes discussed above and repay borrowings outstanding under the Company’s secured revolving credit facility. Approximately $5.8 million, including both bank fees and other third party expenses, was capitalized in connection with the issuance and is being amortized over the term of the senior notes.

On and after March 15, 2022, TWCC may redeem all or part of the senior notes at the redemption prices (expressed as percentages of principal amount of the senior notes to be redeemed) set forth below, plus accrued and unpaid interest. The

redemption price is applicable when the redemption occurs during the twelve-month period beginning on March 15 of each of the years indicated is as follows:


Year	Percentage
2022	102.81	%
2023	101.41	%
2024 and thereafter	100.00	%

The senior notes mentioned above are unsecured and are fully and unconditionally guaranteed by Carter’s, Inc. and certain domestic subsidiaries of TWCC. The guarantor subsidiaries are 100% owned directly or indirectly by Carter’s, Inc. and all guarantees are joint, several and unconditional.

The indenture governing the senior notes provides that upon the occurrence of specific kinds of changes of control, unless a redemption notice with respect to all the outstanding senior notes has previously or concurrently been mailed or delivered, TWCC will be required to make an offer to purchase the senior notes at 101% of their principal amount, plus accrued and unpaid interest to (but excluding) the date of purchase.

The indenture governing the senior notes includes a number of covenants, that, among other things and subject to certain exceptions, restrict TWCC’s ability and the ability of certain of its subsidiaries to: (a) incur certain types of indebtedness that is secured by a lien; (b) enter into certain sale and leaseback transactions; and (c) consolidate or merge with or into, or sell substantially all of the issuer’s assets to, another person, under certain circumstances. Terms of the notes contain customary affirmative covenants and provide for events of default which, if certain of them occur, would permit the trustee or the holders of at least 25.0% in principal amount of the then total outstanding senior notes to declare all amounts owning under the notes to be due and payable. Carter’s, Inc. is not subject to these covenants.

COMMON STOCK

12 Months Ended

Jan. 02, 2021

Equity [Abstract]

COMMON STOCK

Open Market Share Repurchases

On both February 13, 2020 and February 22, 2018, the Company’s Board of Directors authorized an additional $500 million of share repurchases, for total authorizations, inclusive of authorizations prior to 2018, of up to $1.96 billion.

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


	For the fiscal year ended
	January 2, 2021		December 28, 2019		December 29, 2018
Number of shares repurchased	474,684		2,107,472		1,879,529
Aggregate cost of shares repurchased (dollars in thousands)	$	45,255	$	196,910	$	193,028
Average price per share	$	95.34	$	93.43	$	102.70

The total remaining capacity under outstanding repurchase authorizations as of January 2, 2021 was approximately $650.4 million, based on settled repurchase transactions. The share repurchase authorizations have no expiration dates.

On March 26, 2020, the Company announced that, in connection with the COVID-19 pandemic, it suspended its common stock share repurchase program. While we 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

In the first fiscal quarter of 2020, the Company declared and paid cash dividends of $0.60 per share. 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 remainder of fiscal 2020. 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. In fiscal 2019, the Company declared and paid cash dividends of $0.50 per share during all four quarters.

Provisions in the Company’s secured revolving credit facility have the effect of restricting the Company’s ability to pay cash

dividends on, or make future repurchases of, its common stock through the date the Company delivers its financial statements and associated certificates relating to the third fiscal quarter of 2021, and could have the effect of restricting the Company’s ability to do so thereafter, as further described in Note 8, Long-Term Debt, to the consolidated financial statements.

STOCK-BASED COMPENSATION

12 Months Ended

Jan. 02, 2021

Share-based Payment Arrangement [Abstract]

STOCK-BASED COMPENSATION

Under the Company’s Amended and Restated Equity Incentive Plan (the “Plan”), the Compensation Committee of the Board of Directors may award incentive stock options, stock appreciation rights, restricted stock, unrestricted stock, stock deliverable on a deferred basis (including restricted stock units), and performance-based stock awards.

At the Company’s May 17, 2018 shareholders’ meeting, the shareholders approved an amendment to the Plan to increase the maximum number of shares of stock available under the Plan by 3,000,000 shares from a cumulative total of 15,778,392 shares to 18,778,392 shares. As of January 2, 2021, there were 3,293,796 remaining shares available for grant under the Plan. The Plan makes a provision for the treatment of awards upon termination of service or in the case of a merger or similar corporate transaction. Participation in the Plan is limited to members of the Company’s board of directors, executive officers and other key employees.

The limit on shares available under the Plan, the individual limits, and other award terms are subject to adjustment to reflect stock splits or stock dividends, combinations, and certain other events. All stock options issued under the Plan expire no later than ten years from the date of grant. The Company believes that the current level of authorized shares is sufficient to satisfy future grants for the foreseeable future.

The Company recorded stock-based compensation cost as follows:


	For the fiscal years ended
(dollars in thousands)	January 2, 2021		December 28, 2019		December 29, 2018
Stock options	$	2,694	$	4,070	$	4,788
Restricted stock:
Time-based awards	10,468		9,432		7,938
Performance-based awards	(1,927)		1,552		744
Stock awards	1,595		1,475		1,203
Total	$	12,830	$	16,529	$	14,673

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 fiscal 2020, the achievement of performance target estimates was revised resulting in a reversal of previously recognized stock-based compensation expense for outstanding performance-based awards.

Stock Options

Stock options vest in equal annual installments over a four-year period. The Company issues new shares to satisfy stock option exercises.

Changes in the Company’s stock options for the fiscal year ended January 2, 2021 were as follows:


	Number of shares	Weighted- average exercise price		Weighted-average remaining contractual terms (years)	Aggregate intrinsic value (in thousands)
Outstanding, December 28, 2019	1,128,607	$	78.78

Granted(*)	—	$	—
Exercised	(193,645)	$	46.52
Forfeited	(31,758)	$	101.56
Expired	(42,493)	$	96.96
Outstanding, January 2, 2021	860,711	$	84.31	4.83	$	13,164

Vested and expected to vest, January 2, 2021	853,722	$	84.10	4.81	$	13,154
Exercisable, January 2, 2021	709,690	$	79.74	4.41	$	12,584

(*)The Company did not grant any stock options in fiscal 2020.

The intrinsic value of stock options exercised during the fiscal years ended January 2, 2021, December 28, 2019, and December 29, 2018 was approximately $8.2 million, $13.3 million, and $16.6 million, respectively. At January 2, 2021, there was approximately $1.6 million of unrecognized compensation cost (net of estimated forfeitures) related to stock options, which is expected to be recognized over a weighted-average period of approximately 1.1 years.

The table below presents the weighted-average assumptions used to calculate the fair value of options granted in each of the respective fiscal years:


	For the fiscal years ended
	January 2, 2021(*)			December 28, 2019(*)			December 29, 2018
Expected volatility	—		%	—		%	22.93		%
Risk-free interest rate	—		%	—		%	2.75		%
Expected term (years)	0			0			6.0
Dividend yield	—		%	—		%	1.47		%
Weighted average fair value of options granted	$	—		$	—		$	27.36

(*)There were no stock options granted in fiscal 2020 and 2019.

Restricted Stock Awards

Restricted stock awards issued under the Plan vest based upon: 1) continued service (time-based) or 2) a combination of continued service and performance targets (performance-based).

The following table summarizes activity related to all restricted stock awards during the fiscal year ended January 2, 2021:


	Restricted stock awards	Weighted-average grant-date fair value
Outstanding, December 28, 2019	458,500	$	94.58
Granted	226,970	$	105.48
Vested	(140,345)	$	89.80
Forfeited	(82,588)	$	91.83
Outstanding, January 2, 2020	462,537	$	101.87

During fiscal 2019, a total of 131,924 shares of restricted stock vested with a weighted-average fair value of $93.03 per share. During fiscal 2018, a total of 151,321 shares of restricted stock vested with a weighted-average fair value of $84.56 per share.

At January 2, 2021, there was approximately $19.8 million of unrecognized compensation cost (net of estimated forfeitures) related to all restricted stock awards which is expected to be recognized over a weighted-average period of approximately 2.6 years.

Time-based Restricted Stock Awards

Time-based restricted stock awards vest in equal annual installments or cliff vest after a three-year or four-year period. During fiscal years 2020, 2019, and 2018, a total of 125,209 shares, 102,492 shares, and 100,625 shares, respectively, of time-based restricted stock vested with a weighted-average fair value of $90.52 per share, $93.70 per share, and $85.64 per share, respectively. At January 2, 2021, there was approximately $19.8 million of unrecognized compensation cost (net of estimated forfeitures) related to time-based restricted stock which is expected to be recognized over a weighted-average period of approximately 2.6 years.

Performance-based Restricted Stock Awards


Fiscal year	Number of shares granted	Weighted-average fair value per share
2018	45,625	$	120.25
2019	60,700	$	88.87
2020	58,320	$	108.76

Performance-based restricted stock awards cliff vest after a three-year period, subject to the achievement of the performance target. During the fiscal year ended January 2, 2021, a total of 15,136 performance shares vested with a weighted-average fair value of $83.84 per share. As of January 2, 2021, a total of 153,744 performance shares were unvested with a weighted-average fair value of $104.16 per share. Vesting of these 153,744 performance shares is based on the performance targets for the shares granted in fiscal 2020, 2019, and 2018. As of January 2, 2021, there was no unrecognized compensation cost related to the unvested performance-based restricted stock awards based on the current estimates of the number of awards that will vest.

Stock Awards

Included in restricted stock awards are grants to non-management members of the Company’s Board of Directors. At issuance, these awards were fully vested and issued as shares of the Company’s common stock. During fiscal years 2020, 2019, and 2018, such awards were as follows:


Fiscal year	Number of shares issued	Fair value per share		Aggregate value (in thousands)
2018	10,971	$	109.67	$	1,203
2019	16,097	$	91.63	$	1,475
2020	21,362	$	74.67	$	1,595

The Company received no proceeds from the issuance of these shares.

EMPLOYEE BENEFIT PLANS

12 Months Ended

Jan. 02, 2021

Retirement Benefits [Abstract]

EMPLOYEE BENEFIT PLANS

The Company maintains defined contribution plans, a deferred compensation plan, and two defined benefit plans. The two defined benefit plans include the OshKosh B’Gosh pension plan and a post-retirement life and medical plan.

OshKosh B’Gosh Pension Plan

Funded Status

The retirement benefits under the OshKosh B’Gosh pension plan were frozen as of December 31, 2005. A reconciliation of changes in the projected pension benefit obligation and plan assets is as follows:


	For the fiscal year ended
(dollars in thousands)	January 2, 2021		December 28, 2019
Change in projected benefit obligation:
Projected benefit obligation at beginning of year	$	68,331	$	62,297
Interest cost	2,171		2,432
Actuarial loss	6,666		6,039
Benefits paid	(3,040)		(2,437)
Projected benefit obligation at end of year	$	74,128	$	68,331

Change in plan assets:
Fair value of plan assets at beginning of year	$	61,961	$	55,564
Actual return on plan assets	6,496		8,834

Benefits paid	(3,040)		(2,437)
Fair value of plan assets at end of year	$	65,417	$	61,961

Unfunded status	$	8,711	$	6,370

The accumulated benefit obligation is equal to the projected benefit obligation as of January 2, 2021 and December 28, 2019 because the plan is frozen. The unfunded status is included in Other long-term liabilities in the Company’s consolidated balance sheet. The Company does not expect to make any contributions to the OshKosh B’Gosh pension plan during fiscal 2021 as the plan’s funding exceeds the minimum funding requirements. The actuarial loss incurred in both fiscal 2020 and fiscal 2019 was primarily attributable to lower discount rates in each year.

Net Periodic Pension Cost and Changes Recognized in Other Comprehensive Income

The components of net periodic pension cost recognized in the statement of operations and changes recognized in other comprehensive income were as follows:


	For the fiscal year ended
(dollars in thousands)	January 2, 2021		December 28, 2019		December 29, 2018
Recognized in the statement of operations:
Interest cost	$	2,171	$	2,432	$	2,287
Expected return on plan assets	(3,217)		(2,613)		(2,934)
Amortization of net loss(*)	510		795		709
Net periodic pension (benefit) cost	$	(536)	$	614	$	62

Changes recognized in other comprehensive income:
Net loss (gain) arising during the fiscal year	$	3,387	$	(182)	$	1,070

Amortization of net loss(*)	(510)		(795)		(709)


Total changes recognized in other comprehensive income	$	2,877	$	(977)	$	361
Total net periodic cost and changes recognized in other comprehensive income	$	2,341	$	(363)	$	423

(*)Represents pre-tax amounts reclassified from accumulated other comprehensive loss. For fiscal 2021, approximately $0.4 million is expected to be reclassified from accumulated other comprehensive loss to a component of net periodic pension cost.

Assumptions

The actuarial computations utilized the following assumptions, using year-end measurement dates:


Benefit obligation	2020	2019
Discount rate	2.50%	3.25%

Net periodic pension cost	2020	2019	2018
Discount rate	3.25%	4.00%	3.50%
Expected long-term rate of return on assets	6.00%	5.50%	6.25%

The discount rates used at January 2, 2021, December 28, 2019, and December 29, 2018 were determined with consideration given to the Citigroup Pension Discount and Liability Index and the Barclays Capital Aggregate AA Bond Index, adjusted for the timing of expected plan distributions. The Company believes these indexes reflect a risk-free rate consistent with a portfolio of high quality debt instruments with maturities that are comparable to the timing of the expected payments under the plan. The expected long-term rate of return assumption considers historic returns adjusted for changes in overall economic conditions that may affect future returns and a weighting of each investment class.

A 0.25% change in the assumed discount rate would result in an increase or decrease in the amount of the pension plan's projected benefit obligation of approximately $2.5 million.

The Company currently expects benefit payments for its defined benefit pension plans as follows for the next ten fiscal years:


(dollars in thousands)
2021	$	2,780
2022	$	2,860
2023	$	2,970
2024	$	3,160
2025	$	3,370
2026-2030	$	18,710

Plan Assets

The Company’s investment strategy is to invest in a well-diversified portfolio consisting of mutual funds or group annuity contracts that minimize concentration of risks by utilizing a variety of asset types, fund strategies, and fund managers. The target allocation for plan assets is 45% equity securities, 50% bond funds, and 5% real estate investments. The plan expects to gradually reduce its equity exposure.

The Company’s investment policy anticipates a rate of return sufficient to fund pension plan benefits while minimizing the risk to the Company of additional funding. Based on actual returns over a long-term basis, the Company believes that a 6.00% annual return on plan assets can be achieved based on the current allocation and investment strategy.

Equity securities primarily include funds invested in large-cap and mid-cap companies, primarily located in the U.S., with a small exposure to international equities. Fixed income securities include funds holding corporate bonds of companies from diverse industries, and U.S. Treasuries. Real estate funds include investments in actively managed mutual funds that invest in real estate.

The fair value of the Company’s pension plan assets at January 2, 2021 and December 28, 2019, by asset category, were as follows:


(dollars in thousands)	January 2, 2021						December 28, 2019
Asset category	Total		Level 1		Level 2		Total		Level 1		Level 2
Cash and cash equivalents	$	644	$	644	$	—	$	606	$	606	$	—
Equity securities:
U.S. Large-Cap blend(1)	9,006		9,006		—		8,673		8,673		—
U.S. Large-Cap growth	4,105		4,105		—		3,905		3,905		—
U.S. Mid-Cap growth	3,913		3,913		—		3,751		3,751		—

U.S. Small-Cap blend	2,608		2,608		—		2,511		2,511		—
International blend	9,882		9,882		—		9,408		9,408		—
Fixed income securities:
Corporate bonds(2)	31,995		31,751		244		30,051		29,779		272
Real estate(3)	3,264		3,264		—		3,056		3,056		—
	$	65,417	$	65,173	$	244	$	61,961	$	61,689	$	272

(1)This category comprises low-cost equity index funds not actively managed that track the Standard & Poor's 500 Index.

(2)This category invests in both U.S. Treasuries and mid-term corporate debt from U.S. issuers from diverse industries.

(3)This category represents an investment in a mutual fund that invests primarily in real estate securities, including common stocks, preferred stock and other equity securities issued by real estate companies.

Post-retirement Life and Medical Plan

Under a defined benefit plan frozen in 1991, the Company offers a comprehensive post-retirement medical plan to current and certain future retirees and their spouses. The Company also offers life insurance to current and certain future retirees. Employee contributions are required as a condition of participation for both medical benefits and life insurance and the Company’s liabilities are net of these expected employee contributions.

Accumulated Post-Retirement Benefit Obligation

The following is a reconciliation of the accumulated post-retirement benefit obligation ("APBO") under this plan:


	For the fiscal years ended
(dollars in thousands)	January 2, 2021		December 28, 2019
APBO at beginning of fiscal year	$	3,311	$	3,228
Service cost	25		21
Interest cost	94		123
Actuarial (gain) loss	(162)		238
Plan participants’ contribution	9		—

Benefits paid	(279)		(299)

APBO at end of fiscal year	$	2,998	$	3,311

Approximately $2.7 million and $3.0 million of the APBO at the end of fiscal 2020 and 2019, respectively, were classified as other long term liabilities in the Company’s consolidated balance sheets.

Net Periodic Post-Retirement (Benefit) Cost and Changes Recognized in Other Comprehensive Income

The components of net periodic post-retirement cost (benefit) recognized in the statement of operations and changes recognized in other comprehensive income were as follows:


	For the fiscal year ended
(dollars in thousands)		January 2, 2021		December 28, 2019		December 29, 2018
Recognized in the statement of operations:
Service cost		$	25	$	21	$	32
Interest cost		94		123		123

Amortization of net gain(*)		(345)		(396)		(289)

Net periodic post-retirement (benefit) cost		$	(226)	$	(252)	$	(134)

Changes recognized in other comprehensive income:
Net (gain) loss arising during the fiscal year		$	(162)	$	238	$	(573)



Amortization of net gain(*)		345		396		289
Total changes recognized in other comprehensive income		$	183	$	634	$	(284)
Total net periodic cost (benefit) and changes recognized in other comprehensive income		$	(43)	$	382	$	(418)

(*)Represents pre-tax amounts reclassified from accumulated other comprehensive loss. For fiscal 2021, approximately $0.3 million is expected to be reclassified from accumulated other comprehensive loss as a credit to periodic net periodic pension cost.

Assumptions

The actuarial computations utilized the following assumptions, using year-end measurement dates:


Benefit obligation	2020	2019
Discount rate	2.00%	3.00%

Net periodic pension cost	2020	2019	2018
Discount rate	3.00%	4.00%	3.25%

The discount rates used at January 2, 2021, December 28, 2019, and December 29, 2018, were determined with primary consideration given to the Citigroup Pension Discount and Liability Index adjusted for the timing of expected plan distributions. The Company believes this index reflects a risk-free rate with maturities that are comparable to the timing of the expected payments under the plan.

The effects on the Company’s plan of all future increases in health care costs are borne primarily by employees; accordingly, increasing medical costs are not expected to have any material effect on the Company’s future financial results.

The Company’s contribution for these post-retirement benefit obligations was approximately $0.3 million for fiscal years 2020, 2019, and 2018. The Company expects that its contribution and benefit payments for post-retirement benefit obligations will be approximately $0.3 million for fiscal years 2021, 2022, and 2023 and approximately $0.2 million for fiscal years 2024 and 2025. For the five years subsequent to fiscal 2025, the aggregate contributions and benefit payments for post-retirement benefit obligations is expected to be approximately $0.9 million. The Company does not pre-fund this plan and as a result there are no plan assets.

Deferred Compensation Plan

The Company maintains a deferred compensation plan allowing voluntary salary and incentive compensation deferrals for qualifying employees as permitted by the Internal Revenue Code. Participant deferrals earn investment returns based on a select number of investment options, including equity, debt, and real estate mutual funds. The Company invests comparable amounts in marketable securities to mitigate the risk associated with the investment return on the employee deferrals.

Defined Contribution Plan

The Company also sponsors defined contribution savings plans in the United States and Canada. The U.S. plan covers employees who are at least 21 years of age and have completed one calendar month of service and, if part-time, work a minimum of one thousand hours of service within the one-year period following the commencement of employment or during

any subsequent calendar year. The plan provides for a discretionary employer match of employee contributions. The Company’s expense for the U.S. defined contribution savings plan totaled approximately $7.7 million, $8.0 million, and $8.0 million for the fiscal years ended January 2, 2021, December 28, 2019, and December 29, 2018, respectively. Expenses related to the Canadian defined contribution savings plan were approximately $0.2 million in fiscal year 2020, $0.1 million in fiscal year 2019, and $0.1 million in fiscal year 2018.

- Definition

The entire disclosure for retirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

INCOME TAXES

12 Months Ended

Jan. 02, 2021

Income Tax Disclosure [Abstract]

INCOME TAXES

Provision for Income Taxes

The provision for income taxes consisted of the following:


	For the fiscal year ended
(dollars in thousands)	January 2, 2021		December 28, 2019		December 29, 2018
Current tax provision:
Federal	$	31,085	$	50,162	$	48,129
State	6,331		10,548		9,437
Foreign	11,105		16,740		17,359
Total current provision	$	48,521	$	77,450	$	74,925

Deferred tax provision (benefit):
Federal	$	(18,449)	$	(10,775)	$	(760)
State	(3,741)		(1,882)		140
Foreign	(1,064)		(643)		(398)
Total deferred provision	(23,254)		(13,300)		(1,018)
Total provision	$	25,267	$	64,150	$	73,907

The foreign portion of the tax position substantially relates to the Company’s international operations in Canada, Hong Kong and Mexico, in addition to foreign tax withholdings related to the Company’s foreign royalty income.

The Company plans to repatriate undistributed earnings from Hong Kong and has provided for deferred income taxes related to these earnings. Since the current U.S. tax regime taxes foreign earnings in the year earned, taxes associated with repatriation are not material. Deferred income taxes have not been provided for undistributed foreign earnings from Canada or Mexico, or any additional outside basis difference inherent in all foreign entities, as these amounts continue to be indefinitely reinvested in foreign operations. Total undistributed earnings from the Company’s subsidiaries in Canada and Mexico amounted to approximately $70 million. Unrecognized deferred tax liability related to undistributed earnings from the Company’s subsidiaries in Canada and Mexico is estimated to be approximately $3 million, based on applicable withholding taxes, levels of foreign income previously taxed in the U.S. and applicable foreign tax credit limitations. The company accounts for the additional U.S. income tax on its foreign earnings under Global Intangible Low-Taxed Income (“GILTI”) as a period expense in the period in which additional tax is due.

The components of income before income taxes were as follows:


	For the fiscal year ended
(dollars in thousands)	January 2, 2021		December 28, 2019		December 29, 2018
Domestic	$	73,525	$	225,488	$	260,722
Foreign	61,459		102,464		95,253
Total	$	134,984	$	327,952	$	355,975

Effective Rate Reconciliation

The difference between the Company’s effective income tax rate and the federal statutory tax rate is reconciled below:


	For the fiscal year ended
	January 2, 2021		December 28, 2019		December 29, 2018
Statutory federal income tax rate	21.0	%	21.0	%	21.0	%
State income taxes, net of federal income tax benefit	2.7	%	2.5	%	2.8	%
Impact of foreign operations	(4.8)	%	(2.4)	%	(1.5)	%
Settlement of uncertain tax positions	(1.3)	%	(0.7)	%	(0.4)	%
Benefit from stock-based compensation	(1.1)	%	(0.8)	%	(1.1)	%
Goodwill impairments and other	2.2	%	—	%	—	%



Total	18.7	%	19.6	%	20.8	%

The Company and its subsidiaries file a consolidated United States federal income tax return, as well as separate and combined income tax returns in numerous state and foreign jurisdictions. In most cases, the Company is no longer subject to U.S. tax authority examinations for years prior to fiscal 2017.

Deferred Taxes

The following table reflects the Company's calculation of the components of deferred tax assets and liabilities as of January 2, 2021 and December 28, 2019.


(dollars in thousands)	January 2, 2021		December 28, 2019
Deferred tax assets:	Assets (Liabilities)
Accounts receivable allowance	$	4,072	$	3,437
Inventory	11,775		7,963
Accrued liabilities	13,807		10,219
Equity-based compensation	5,039		5,222
Deferred employee benefits	7,928		7,220
Leasing liabilities	130,776		178,356
Other	4,961		3,699
Total deferred tax assets	178,358		216,116
Deferred tax liabilities:
Depreciation	(38,777)		(52,664)
Leasing assets	(107,269)		(149,085)
Tradename and licensing agreements	(76,409)		(82,592)
Other	(5,593)		(4,084)
Total deferred tax liabilities	(228,048)		(288,425)

Net deferred tax liability	$	(49,690)	$	(72,309)

Amounts recognized in the consolidated balance sheets:


(dollars in thousands)	January 2, 2021		December 28, 2019
	Assets (Liabilities)
Deferred tax assets	$	3,080	$	2,061
Deferred tax liabilities	(52,770)		(74,370)
Net deferred tax liability	$	(49,690)	$	(72,309)

Uncertain Tax Positions

The following is a reconciliation of the beginning and ending amount of unrecognized tax benefits:


(dollars in thousands)
Balance at December 30, 2017	$	12,193
Additions based on tax positions related to fiscal 2018	3,350
Additions for prior year tax positions	241
Reductions for lapse of statute of limitations	(1,867)

Balance at December 29, 2018	$	13,917
Additions based on tax positions related to fiscal 2019	2,197

Reductions for lapse of statute of limitations	(2,191)

Balance at December 28, 2019	$	13,923
Additions based on tax positions related to fiscal 2020	760
Reductions for prior year tax positions	(104)
Reductions for lapse of statute of limitations	(2,056)

Balance at January 2, 2021	$	12,523

As of January 2, 2021, the Company had gross unrecognized tax benefits of approximately $12.5 million, of which $10.9 million, if ultimately recognized, will affect the Company’s effective tax rate in the period 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. Because of deferred tax accounting, changes in the timing of these deductions would not affect the annual effective tax rate, but would accelerate the payment of cash to the taxing authorities.

Included in the reserves for unrecognized tax benefits are approximately $3.3 million of reserves for which the statute of limitations is expected to expire within the next fiscal year. If these tax benefits are ultimately recognized, such recognition, net of federal income taxes, may affect the annual effective tax rate for fiscal 2021 and the effective 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 penalties related to unrecognized tax benefits as a component of income tax expense. During fiscal 2020 and 2019, expense recorded on uncertain tax positions was approximately $0.4 million and $0.5 million, respectively. During fiscal 2018, interest expense recorded on uncertain tax positions was not significant. The Company had accrued interest on uncertain tax positions of approximately $2.7 million and $2.3 million as of January 2, 2021 and December 28, 2019, 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

EARNINGS PER SHARE

12 Months Ended

Jan. 02, 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:


	For the fiscal year ended
		January 2, 2021		December 28, 2019		December 29, 2018
		(53 weeks)		(52 weeks)		(52 weeks)
Weighted-average number of common and common equivalent shares outstanding:
Basic number of common shares outstanding		43,242,967		44,402,438		46,160,935
Dilutive effect of equity awards		164,754		305,514		487,485
Diluted number of common and common equivalent shares outstanding		43,407,721		44,707,952		46,648,420
Earnings per share:
(dollars in thousands, except per share data)
Basic net income per common share:
Net income		$	109,717	$	263,802	$	282,068
Income allocated to participating securities		(1,118)		(2,430)		(2,148)
Net income available to common shareholders		$	108,599	$	261,372	$	279,920
Basic net income per common share		$	2.51	$	5.89	$	6.06

Diluted net income per common share:
Net income		$	109,717	$	263,802	$	282,068
Income allocated to participating securities		(1,115)		(2,419)		(2,132)
Net income available to common shareholders		$	108,602	$	261,383	$	279,936
Diluted net income per common share		$	2.50	$	5.85	$	6.00

Anti-dilutive shares excluded from dilutive earnings per share calculations(1)		564,131		351,777		289,839

(1)The volume of antidilutive shares is, in part, due to the related unamortized compensation costs.

The Company grants shares of its common stock in the form of restricted stock awards to certain key employees under the Company’s Amended and Restated Equity Incentive Plan (see Note 10, Stock-based Compensation, to the consolidated financial statements). Prior to vesting of the restricted stock awards, the grant recipients are entitled to receive non-forfeitable cash dividends if the Company declares and pays dividends on the Company’s common stock. Accordingly, unvested shares of the Company’s restricted stock awards are deemed to be participating securities for purposes of computing diluted earnings per share (EPS), and therefore the Company’s diluted EPS represents the lower of the amounts calculated under the treasury stock method or the two-class method of calculating diluted EPS.

SEGMENT INFORMATION

12 Months Ended

Jan. 02, 2021

Segment Reporting [Abstract]

SEGMENT INFORMATION

The Company reports segment information based upon a “management approach.” The management approach refers to the internal reporting that is used by management for making operating decisions and assessing the performance of the Company’s reportable segments. The Company reports its corporate expenses separately as they are not included in the internal measures of segment operating performance used by the Company to measure the underlying performance of its reportable segments.

Segment results include the direct costs of each segment and all other costs are allocated based upon detailed estimates and analysis of actual time and expenses incurred to support the operations of each segment or units produced or sourced to support each segment’s revenue. Certain costs, including incentive compensation for certain employees, and various other general corporate costs that are not specifically allocable to segments, are included in corporate expenses below. Intersegment sales and transfers are recorded at cost and are treated as a transfer of inventory. The accounting policies of the segments are the same as those described in Note 2, Summary of Significant Accounting Policies, to the consolidated financial statements.

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


	For the fiscal year ended
(dollars in thousands)	January 2, 2021 (53 weeks)		% of Consolidated Net Sales		December 28, 2019 (52 weeks)		% of Consolidated Net Sales		December 29, 2018 (52 weeks)		% of Consolidated Net Sales
Net sales:
U.S. Retail	$	1,671,644	55.3	%	$	1,884,150	53.5	%	$	1,851,193	53.5	%
U.S. Wholesale	996,088		32.9	%	1,205,646		34.3	%	1,180,687		34.1	%
International	356,602		11.8	%	429,490		12.2	%	430,389		12.4	%
Total consolidated net sales	$	3,024,334	100.0	%	$	3,519,286	100.0	%	$	3,462,269	100.0	%
Operating income (loss):			% of Segment Net Sales				% of Segment Net Sales				% of Segment Net Sales
U.S. Retail	$	146,806	8.8	%	$	225,874	12.0	%	$	224,784	12.1	%
U.S. Wholesale	141,456		14.2	%	212,558		17.6	%	224,194		19.0	%
International	(1,224)		(0.3)	%	36,650		8.5	%	39,253		9.1	%
Corporate expenses(*)	(97,169)		n/a		(103,210)		n/a		(96,798)		n/a
Total operating income	$	189,869	6.3	%	$	371,872	10.6	%	$	391,433	11.3	%

(*)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.

The tables below present additional segment information for our reportable segments for the periods presented:


(dollars in millions)	January 2, 2021
Charges:	U.S. Retail		U.S. Wholesale		International
Organizational restructuring(1)	$	5.0	$	2.0	$	2.2
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	9.6		9.6		2.2
Retail store operating leases and other long-lived asset impairments, net of gain(2)	7.4		—		0.3
Total charges	$	36.1	$	20.0	$	26.4

(1)The fiscal year ended January 2, 2021 also includes corporate charges related to organizational restructuring of $7.4 million.

(2)Impairments include an immaterial gain on the remeasurement of retail store operating leases.


(dollars in millions)	December 28, 2019						December 29, 2018
Charges:	U.S. Retail		U.S. Wholesale		International		U.S. Retail		U.S. Wholesale		International
Skip Hop tradename impairment charge	$	1.2	$	19.1	$	10.5	$	—	$	—	$	—
Customer bankruptcy charges	—				—		—		12.8
China business model change	—		—		—		—		—		5.3
Benefit related to sale of inventory previously reserved in China	—		—		(2.1)		—		—		—
Reversal of store restructuring costs previously recorded during the third quarter of fiscal 2017	(0.7)		—		—		—		—		—
Customer bankruptcy recovery			(0.6)		—		—		(1.9)		—
Insurance recovery associated with storm-related store closures.	—		—		—		(0.4)		—		—
Total charges(1)	$	0.5	$	18.5	$	8.4	$	(0.4)	$	10.9	$	5.3

(1)The fiscal year ended December 28, 2019 also includes corporate charges related to organizational restructuring of $1.6 million.

Additional Data by Segment

Inventory

The table below represents inventory by segment:


	For the fiscal year ended
(dollars in thousands)	January 2, 2021		December 28, 2019
U.S. Wholesale(*)	$	464,229	$	427,387
U.S. Retail	47,889		87,721
International	87,144		78,879
Total	$	599,262	$	593,987

(*)U.S. Wholesale inventories also include inventory produced and warehoused for the U.S. Retail segment.

The table below represents consolidated net sales by product:


	For the fiscal year ended
(dollars in thousands)	January 2, 2021 (53 weeks)		December 28, 2019 (52 weeks)		December 29, 2018 (52 weeks)
Baby	$	1,026,910	$	1,228,905	$	1,239,009
Playclothes	1,052,178		1,362,847		1,303,610
Sleepwear	441,358		428,541		431,961
Other(*)	503,888		498,993		487,689
Total net sales	$	3,024,334	$	3,519,286	$	3,462,269

(*)Other product offerings include bedding, outerwear, swimwear, shoes, socks, diaper bags, gift sets, toys, and hair accessories.

Geographical Data

Revenue

The Company’s international sales principally represent sales to customers in Canada. Such sales were 70.3%, 65.6%, and 64.2% of total international net sales in fiscal 2020, 2019, and 2018, respectively.

Long-Lived Assets

The following represents property, plant, and equipment, net, by geographic area:


	For the fiscal year ended
(dollars in thousands)	January 2, 2021		December 28, 2019
United States	$	232,655	$	283,371
International	29,690		36,797
Total	$	262,345	$	320,168

Long-lived assets in the international segment relate principally to Canada. Long-lived assets in Canada were 84.0% and 84.3% of total international long-lived assets at the end of fiscal 2020 and 2019, respectively.

- 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
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+ Details

FAIR VALUE MEASUREMENTS	12 Months Ended
FAIR VALUE MEASUREMENTS	Jan. 02, 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 $20.2 million and $19.7 million at the end of fiscal 2020 and fiscal 2019, respectively. These investments are classified as Level 1 within the fair value hierarchy. Investments in marketable securities incurred a net gain of approximately $2.0 million for fiscal 2020 and a net gain of approximately $4.0 million for fiscal 2019. The fair value of the Company’s pension plan assets at January 2, 2021 and December 28, 2019, by asset category, are disclosed in Note 11, Employee Benefits Plans, to the consolidated financial statements. Foreign Exchange Forward Contracts Fair values of any unsettled foreign exchange forward contracts are calculated by using readily observable market inputs (market-quoted currency exchange rates in effect between the U.S. dollar and the currencies of Canada and Mexico) and are classified as Level 2 within the fair value hierarchy. Any unsettled foreign exchange forward contracts are included in other current assets or other current liabilities on the Company’s consolidated balance sheet at the end of each fiscal reporting period. As of January 2, 2021 and December 28, 2019, there were no open foreign currency contracts. Realized and unrealized gains and losses on foreign currency contracts were not material for fiscal 2020, 2019, and 2018. Borrowings As of January 2, 2021, the Company had no outstanding borrowings under its secured revolving credit facility. The fair value of the Company’s senior notes at January 2, 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. Impairment of Long-Lived Tangible assets Long-lived assets, which for the Company primarily consist of operating lease assets and store assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. The asset group is defined as the lowest level for which identifiable cash flows are available and is largely independent of cash flows of other groups of assets, which for our retail stores, is at the store level. For impaired assets, the Company recognized a loss equal to the difference between the carrying amount of the asset or asset group and its estimated fair value, which is recorded in Selling, general and administrative expenses on the Company’s consolidated statements of operations. For operating lease assets, the Company determines the fair value of the assets by discounting the estimated market rental rates over the remaining term of the lease. These estimates can be affected by factors such as future store results, real estate demand, store closure plans, property specific discount rates, and economic conditions that can be difficult to predict. These fair value measurements qualify as level 3 measurements in the fair value hierarchy. The impact of the COVID-19 pandemic resulted in a qualitative indication of impairment related to our store long-lived assets. In fiscal 2020, the Company recorded impairment charges of operating lease assets and other long-lived assets for our underperforming retail stores of $9.0 million. The impairment charges were recorded in Selling, general and administrative expenses on the Company’s consolidated statements of operations. Goodwill and Intangible Assets Goodwill and indefinite-lived intangible assets are tested annually or if a triggering event occurs that indicates an impairment loss may have been incurred using fair value measurements with unobservable inputs (Level 3). Due to the decrease in the Company’s market capitalization, lower than expected actual sales, and lower projected sales and profitability, primarily due to the impacts from the outbreak of COVID-19, the Company concluded that impairment indicators existed for the first quarter of fiscal 2020. As a result, during the first quarter of fiscal 2020, the Company conducted interim quantitative impairment assessments of 1) the goodwill ascribed to the Other International reporting unit recorded in connection with the allocation of goodwill to the newly created International segment as a result of the acquisition of Bonnie Togs in 2011 and 2) on the value of the Company’s indefinite-lived OshKosh and Skip Hop tradename assets that was recorded in connection with the acquisition of OshKosh B’Gosh Inc. in July 2005 and Skip Hop Holdings, Inc. in February 2017, respectively. Based on these assessments, a goodwill impairment charge of $17.7 million was recorded during the first quarter of fiscal 2020 to our Other International reporting unit in the International segment and charges of $15.5 million and $11.0 million were recorded on our indefinite-lived OshKosh and Skip Hop tradename assets, respectively. The charge recorded on our indefinite-lived OshKosh tradename asset included charges of $13.6 million, $1.6 million, and $0.3 million 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. The charge recorded on our indefinite-lived Skip Hop tradename asset included charges of $6.8 million, $3.7 million, and $0.5 million 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. The carrying value of the Company’s goodwill for the Other International reporting unit as of January 2, 2021 was $11.8 million. The carrying values of the Company’s indefinite-lived OshKosh and Skip Hop tradename asset as of January 2, 2021 were $70.0 million and $15.0 million, respectively. In the third quarter of fiscal 2019, the Company’s Skip Hop business experienced lower than expected actual and projected sales and profitability due to lower domestic demand, including the loss of a significant customer (Toys “R” Us), lower international demand and higher product costs primarily driven by tariffs imposed on products sourced from China. As a result, the Company conducted an interim impairment assessment in the third quarter of fiscal 2019 on the value of the Company’s indefinite-lived Skip Hop tradename asset that was recorded in connection with the acquisition of Skip Hop Holdings, Inc. in February 2017. Based on this assessment, a charge of $30.8 million was recorded during the third quarter of fiscal 2019 on our indefinite-lived Skip Hop tradename asset. The charge included charges of $19.1 million, $10.5 million, and $1.2 million 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. See Note 6, Goodwill and Other Intangible Assets, for further details on the impairment charge and valuation methodologies.

- 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

OTHER CURRENT LIABILITIES

12 Months Ended

Jan. 02, 2021

Other Liabilities Disclosure [Abstract]

OTHER CURRENT LIABILITIES

Other current liabilities consisted of the following:


(dollars in thousands)	January 2, 2021		December 28, 2019
Accrued employee benefits	$	22,876	$	16,556
Income taxes payable	21,164		23,269
Unredeemed gift cards	18,300		17,563
Accrued interest	12,092		8,579
Accrued taxes	10,900		15,036
Accrued salaries and wages	10,650		4,695





Other	39,258		45,933
Other current liabilities	$	135,240	$	131,631

RESTRUCTURING

12 Months Ended

Jan. 02, 2021

Restructuring and Related Activities [Abstract]

ORGANIZATIONAL RESTRUCTURING AND OFFICE CONSOLIDATION

In the first and fourth quarters of fiscal 2020, the Company announced 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:


	For the fiscal year ended
(dollars in thousands)	January 2, 2021
Severance and other termination benefits	$	12,029
Lease exit costs	2,727
Relocation and recruiting	1,800
Other closure costs	80
Total	$	16,636

The Company paid approximately $4.3 million in severance and other termination benefits during fiscal 2020. As of January 2, 2021 there was approximately $7.7 million in reserves related to severance and other termination benefits expected to be paid during fiscal 2021 included in Other current liabilities in the Company’s consolidated balance sheets. The Company expects to incur additional restructuring-related charges of approximately $2.0 million to $3.0 million in fiscal 2021. These charges primarily relate to accelerated depreciation and severance.

COMMITMENTS AND CONTINGENCIES	12 Months Ended
COMMITMENTS AND CONTINGENCIES	Jan. 02, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments 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 effect 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 17, Organizational Restructuring and Office Consolidation, to the consolidated financial statements. The Company also has minimum inventory purchase commitments, including fabric commitments, with our suppliers which secure a portion of our material needs for future seasons. In light of the COVID-19 pandemic, some of our orders may be canceled. As of January 2, 2021, the Company had an outstanding reserve of $13.3 million for adverse inventory and fabric purchase commitments.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Jan. 02, 2021

Accounting Policies [Abstract]

PRINCIPLES OF CONSOLIDATION

Principles of Consolidation

FISCAL YEAR

Fiscal Year

USE OF ESTIMATES IN THE PREPARATION OF THE CONSOLIDATED FINANCIAL STATEMENTS

Use of Estimates in the Preparation of the Consolidated Financial Statements

FOREIGN CURRENCY TRANSLATION AND TRANSACTIONS

Foreign Currency Translation and Transactions

Translation Adjustments

Transaction Adjustments

Foreign Currency ContractsAs part of the Company’s overall strategy to manage the level of exposure to the risk of foreign currency exchange rate fluctuations, primarily between the U.S. dollar and the currencies of Canada and Mexico, the Company may use foreign currency forward contracts to hedge purchases that are made in U.S. dollars, primarily for inventory purchases in its Canadian and Mexican operations. As part of this hedging strategy, the Company may use foreign currency forward exchange contracts with maturities of less than 12 months to provide continuing coverage throughout the hedging period. Historically, these contracts were not designated for hedge accounting treatment, and therefore changes in the fair value of these contracts have been recorded in Other (income) expense, net in the Company’s consolidated statements of operations. Such foreign currency gains and losses typically include the mark-to-market fair value adjustments at the end of each reporting period related to open contracts, as well as any realized gains and losses on contracts settled during the reporting period. The fair values of any unsettled currency contracts are included in other current assets or other current liabilities on the Company’s consolidated balance sheet. On the consolidated statement of cash flows, the Company includes all activity, including cash settlement of any contracts, as a component of cash flows from operations.

REVISION OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

Revision of Previously Issued Financial Statements

CASH AND CASH EQUIVALENTS

Cash and Cash Equivalents

Concentration of Cash Deposits Risk

ACCOUNTS RECEIVABLE

Accounts Receivable

Concentration of Credit Risk

In fiscal 2020, 2019, and 2018, no one customer accounted for 10% or more of the Company’s consolidated net sales.

Valuation Accounts for Wholesale Accounts Receivable

Accounts Receivable Reserves

Sales Returns Reserves

Except in very limited instances, the Company does not allow its wholesale customers to return goods to the Company.

INVENTORIES

Inventories

LEASES

Leases

Financial Presentation

The operating lease ROU asset also includes initial direct costs and excludes lease incentives. Lease expense is recognized on a straight-line basis over the lease term.

Policy Elections

Practical Expedient Package - The Company has elected the following expedients and applied them consistently to all leases:

•The Company will not revisit whether a contract is, or contains, a lease under the ASC 842 definition of a lease.

•The lease classification determined under prior guidance will not be reevaluated under ASC 842.

•Previously capitalized initial direct costs under prior guidance will be carried forward. Any initial direct costs after the effective date will be included within the ROU asset under ASC 842.

Short-term lease - Leases with an initial term of 12 months or less are not recorded on the balance sheets.

PROPERTY, PLANT, AND EQUIPMENT

Property, Plant, and Equipment

INTERNAL-USE SOFTWARE

Internal-Use Software

VALUATION OF GOODWILL AND OTHER INTANGIBILE ASSETS

Goodwill and Other Intangible Assets

Annual Impairment Reviews

Goodwill

Indefinite-lived Tradenames

IMPAIRMENT OF OTHER LONG-LIVED ASSETS

Impairment of Other Long-Lived Assets

DEFERRED DEBT ISSUANCE COSTS

Deferred Debt Issuance CostsDebt issuance costs associated with the Company’s secured revolving credit facility and senior term notes are deferred and amortized to interest expense over the term of the related debt using the effective interest method. Debt issuance costs associated with Company’s senior notes are presented on the Company’s consolidated balance sheet as a direct reduction in the carrying value of the associated debt liability. Fees paid to lenders by the Company to obtain its secured revolving credit facility are included within Other assets on the Company’s consolidated balance sheets and classified as either current or non-current based on the expiration date of the credit facility.

FAIR VALUE MEASUREMENTS

Fair Value Measurements


Level 1:			Quoted prices in active markets for identical assets or liabilities.

Level 2:			Quoted prices for similar assets and liabilities in active markets or inputs that are observable.

Level 3:			Unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability.

REVENUE RECOGNITION

Revenue Recognition

At the beginning of fiscal 2018, the Company adopted the provisions of ASC 606 using the full retrospective adoption method.

The Company uses the five-step model to recognize revenue:

1)Identify the contract with the customer;

2)Identity the performance obligation(s);

3)Determine the transaction price;

4)Allocate the transaction price to each performance obligation if multiple obligations exist; and

5)Recognize the revenue when the performance obligations are satisfied

Performance Obligations

When Performance Obligations Are Satisfied

Royalty Revenues - The Company satisfies its performance obligations with licensees over time as customers have the right to use the intellectual property over the contract period.

Significant Payment Terms

Retail customers tender a form of payment, such as cash or a credit/debit card, at point of sale. For wholesale customers and licensees, payment is due based on established terms.

Returns and Refunds

The Company establishes return provisions for retail customers. Except in very limited instances, the Company does not allow its wholesale customers to return goods to the Company.

Significant Judgments

Costs Incurred to Obtain a Contract - Incremental costs to obtain contracts are not material to the Company.

Policy Elections

In addition to those previously disclosed, the Company has made the following accounting policy elections and practical expedients:

•Portfolio Approach - The Company uses the portfolio approach when multiple contracts or performance obligations are involved in the determination of revenue recognition.

•Taxes - The Company excludes from the transaction price any taxes collected from customers that are remitted to taxing authorities.

•Shipping and Handling Charges - Charges that are incurred before and after the customer obtains control of goods are deemed to be fulfillment costs.

COST OF GOODS SOLD AND GROSS PROFIT

Costs of Goods Sold and Selling, General and Administrative Expenses

Gross Profit

ROYALTIES AND LICENSE FEES

Income from Royalties and License FeesWe license our Carter’s, OshKosh, Child of Mine, Just One You, Simple Joys, and Carter's little baby basics brands to partners to expand our product offerings to include bedding, cribs, diaper bags, footwear, gift sets, hair accessories, jewelry, outerwear, paper goods, socks, shoes, swimwear, and toys. These royalties are recorded as earned, based upon the sales of licensed products by licensees and reported as royalty income in the statements of operations.

ADVERTISING EXPENSES

Advertising ExpensesCosts associated with the production of advertising, such as writing, copy, printing, and other costs, are expensed as incurred. Costs associated with communicating advertising that has been produced, such as magazine costs and eCommerce site banners, are expensed when the advertising event takes place.

STOCK-BASED COMPENSATION ARRANGEMENTS

Stock-Based Compensation Arrangements

Company’s actual income tax deduction, if any, and the previously accrued income tax benefit is recognized in income tax expense/benefit during the current period.

Stock Options

The Company determines the fair value of stock options using the Black-Scholes option pricing model, which requires the use of the following subjective assumptions:

•Forfeitures - The Company estimates forfeitures of stock-based awards based on historical experience and expected future activity.

Time-Based Restricted Stock Awards

Performance-Based Restricted Stock Awards

Stock Awards

INCOME TAXES

Income Taxes

Supplemental Cash Flow Information

EARNINGS PER SHARE

Earnings Per Share

OPEN MARKET REPURCHASES OF COMMON STOCK

Open Market Repurchases of Common Stock

EMPLOYEE BENEFIT PLANS

Employee Benefit Plans

FACILITY CLOSURE AND OFFICE CONSOLIDATION

Facility Closure and Severance Costs

SEASONALITY

SeasonalityThe Company experiences seasonal fluctuations in its sales and profitability due to the timing of certain holidays and key retail shopping periods, typically resulting in lower sales and gross profit in the first half of its fiscal year. Accordingly, the Company’s results of operations during the first half of the year may not be indicative of the results for the full year.

RECENT ACCOUNTING PRONOUNCEMENTS

Recent Accounting Pronouncements

Adopted in Fiscal 2020

Credit Losses (ASU 2016-13)

Goodwill Impairment Testing (ASU 2017-04)

Simplifying the Accounting for Income Taxes (ASU 2019-12)

To Be Adopted After Fiscal 2020

Reference Rate Reform (ASU 2020-04)

REVENUE RECOGNITION (Tables)

12 Months Ended

Jan. 02, 2021

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue


	Fiscal year ended January 2, 2021 (53 weeks)
(dollars in thousands)	U.S. Retail		U.S. Wholesale		International		Total
Wholesale channel	$	—	$	996,088	$	120,244	$	1,116,332
Direct-to-consumer	1,671,644		—		236,358		1,908,002

	$	1,671,644	$	996,088	$	356,602	$	3,024,334

Royalty income	$	8,732	$	13,120	$	4,424	$	26,276


	Fiscal year ended December 28, 2019 (52 weeks)
(dollars in thousands)	U.S. Retail		U.S. Wholesale		International		Total
Wholesale channel	$	—	$	1,205,646	$	163,793	$	1,369,439
Direct-to-consumer	1,884,150		—		265,697		2,149,847

	$	1,884,150	$	1,205,646	$	429,490	$	3,519,286

Royalty income	$	12,990	$	17,670	$	3,977	$	34,637


	Fiscal year ended December 29, 2018 (52 weeks)
(dollars in thousands)	U.S. Retail		U.S. Wholesale		International		Total
Wholesale channel	$	—	$	1,180,687	$	163,637	$	1,344,324
Direct-to-consumer	1,851,193		—		266,752		2,117,945

	$	1,851,193	$	1,180,687	$	430,389	$	3,462,269

Royalty income	$	12,877	$	22,511	$	3,542	$	38,930

Accounts Receivable from Customers and Licensees

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


(dollars in thousands)	January 2, 2021		December 28, 2019
Trade receivables from wholesale customers, net(1)	$	180,830	$	239,059
Royalties receivable	5,733		6,982
Tenant allowances and other receivables	12,315		16,247
Total gross receivables	$	198,878	$	262,288
Less: Wholesale accounts receivable reserves(1)(2)	(12,366)		(11,283)
Accounts receivable, net	$	186,512	$	251,005

(2)Includes allowance for credit losses of $5.9 million and $6.4 million for the periods ended January 2, 2021 and December 28, 2019, respectively.

Contract Liabilities

Contract Assets and Liabilities

The Company’s contract assets are not material.

Contract Liabilities


(dollars in thousands)	January 2, 2021		December 28, 2019
Contract liabilities-current:
Unredeemed gift cards	$	18,300	$	17,563
Unredeemed customer loyalty rewards	5,241		5,615
Carter’s credit card - upfront bonus(1)	714		714
Total contract liabilities - current(2)	$	24,255	$	23,892

Contract liabilities - non-current	$	2,857	$	3,571
Total contract liabilities	$	27,112	$	27,463

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

Composition of Contract Liabilities

Accounts Receivable Reserves

Information regarding Wholesale accounts receivable reserves is as follows:


(dollars in thousands)	Wholesale accounts receivable reserves
Balance at December 30, 2017	$	13,736
Additional provisions	30,280

Charges to reserve	(32,150)
Balance at December 29, 2018	$	11,866
Additional provisions	9,047
Charges to reserve	(7,939)
Reclassification to Trade receivables(1)	$	(1,691)
Balance at December 28, 2019	$	11,283
Additional provisions	9,625
Charges to reserve(2)	(8,542)
Balance at January 2, 2021	$	12,366

(2)Charges to the reserve include total write-offs of $6.5 million related to the bankruptcy of customers during fiscal 2020.

LEASES (Tables)

12 Months Ended

Jan. 02, 2021

Leases [Abstract]

Lease Expense

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


	For the fiscal year ended
(dollars in thousands)	January 2, 2021		December 28, 2019
Operating lease cost	$	180,056	$	179,982




Variable lease cost (*)	71,971		63,043
Net lease cost	$	252,027	$	243,025

(*)Includes operating lease impairment charges, and short-term leases, which are immaterial.

Supplemental Information

Supplemental balance sheet information related to leases was as follows:



	January 2, 2021	December 28, 2019
Weighted average remaining operating lease term (years)	5.4	6.0
Weighted average discount rate for operating leases	3.33%	4.35%

Cash paid for amounts included in the measurement of operating lease liabilities in fiscal 2020 and fiscal 2019 was $161.7 million and $193.5 million, respectively.

Non-cash transactions to recognize operating assets and liabilities for new leases in fiscal 2020 and fiscal 2019 were $62.6 million and $110.0 million, respectively.

Lessee, Operating Lease, Liability, Maturity

As of January 2, 2021, the maturities of lease liabilities were as follows:


(dollars in thousands)	Operating leases
2021	$	206,814
2022	159,350
2023	130,646
2024	105,515
2025	77,134
After 2025	129,195
Total lease payments	$	808,654
Less: Interest	(69,005)
Present value of lease liabilities(*)	$	739,649

PROPERTY, PLANT, AND EQUIPMENT (Tables)

12 Months Ended

Jan. 02, 2021

Property, Plant and Equipment [Abstract]

Property, plant, and equipment

Property, plant, and equipment, net consists of the following:


(dollars in thousands)	January 2, 2021		December 28, 2019
Land, building, and leasehold improvements	$	358,121	$	363,428
Fixtures, equipment, and computer hardware	308,260		297,930
Computer software	159,558		161,104
Marketing fixtures	9,819		11,160
Construction in progress	10,567		10,394
	846,325		844,016
Accumulated depreciation and amortization	(583,980)		(523,848)
Total	$	262,345	$	320,168

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)

12 Months Ended

Jan. 02, 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 29, 2018	$	83,934	$	74,454	$	68,713	$	227,101



Foreign currency impact	—		—		1,925		1,925
Balance at December 28, 2019	$	83,934	$	74,454	$	70,638	$	229,026


Goodwill impairment(1)	—		—		(17,742)		(17,742)
Foreign currency impact	—		—		492		492
Balance at January 2, 2021(2)	$	83,934	$	74,454	$	53,388	$	211,776

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

Tradename and Intangible Assets

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


		January 2, 2021						December 28, 2019
(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(1)	Indefinite	70,000		—		70,000		85,500		—		85,500
Skip Hop tradename(2)(3)	Indefinite	15,000		—		15,000		26,000		—		26,000
Finite-life tradenames	5 - 20 years	3,911		1,251		2,660		3,911		1,002		2,909



Total tradenames, net		$	309,144	$	1,251	$	307,893	$	335,644	$	1,002	$	334,642

Skip Hop customer relationships	15 years	$	47,300	$	11,834	$	35,466	$	47,300	$	8,657	$	38,643
Carter’s Mexico customer relationships	10 years	3,108		1,064		2,044		3,258		775		2,483
Total customer relationships, net		$	50,408	$	12,898	$	37,510	$	50,558	$	9,432	$	41,126

Future Amortization Expense

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


(dollars in thousands)	Amortization expense
2021	$	3,737
2022	$	3,737
2023	$	3,695
2024	$	3,665
2025	$	3,665

ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Tables)

12 Months Ended

Jan. 02, 2021

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Schedule of accumulated other comprehensive (loss) income

Accumulated other comprehensive (loss) income is summarized as follows:


(dollars in thousands)	Pension liability adjustments		Post-retirement liability adjustments		Cumulative translation adjustments		Accumulated other comprehensive (loss) income
Balance at December 30, 2017	$	(9,281)	$	1,473	$	(21,285)	$	(29,093)
Fiscal year 2018 change	(281)		214		(11,679)		(11,746)
Balance at December 29, 2018	(9,562)		1,687		(32,964)		(40,839)
Reclassification of tax effects(*)	(1,880)		380		—		(1,500)
Fiscal year 2019 change	746		(483)		6,442		6,705
Balance at December 28, 2019	(10,696)		1,584		(26,522)		(35,634)

Fiscal year 2020 change	(2,197)		(144)		5,215		2,874
Balance at January 2, 2021	$	(12,893)	$	1,440	$	(21,307)	$	(32,760)

LONG-TERM DEBT (Tables)

12 Months Ended

Jan. 02, 2021

Debt Disclosure [Abstract]

Schedule of long-term debt

Long-term debt consisted of the following:


(dollars in thousands)	January 2, 2021		December 28, 2019
5.500% Senior Notes due 2025	$	500,000	$	—
5.625% Senior Notes due 2027	500,000		500,000
Total senior notes	$	1,000,000	$	500,000
Less: unamortized issuance-related costs for senior notes	(10,470)		(5,328)
Senior notes, net	$	989,530	$	494,672
Secured revolving credit facility	—		100,000
Total long-term debt, net	$	989,530	$	594,672

Schedule of redemption price applicable where redemption occurs

The redemption price is applicable when the redemption occurs during the twelve-month period beginning on May 15 of each of the years indicated is as follows:


Year	Percentage
2022	102.75	%
2023	101.38	%
2024 and thereafter	100.00	%

The

redemption price is applicable when the redemption occurs during the twelve-month period beginning on March 15 of each of the years indicated is as follows:


Year	Percentage
2022	102.81	%
2023	101.41	%
2024 and thereafter	100.00	%

- 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.

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+ Details

COMMON STOCK (Tables)

12 Months Ended

Jan. 02, 2021

Equity [Abstract]

Open Market Repurchases


	For the fiscal year ended
	January 2, 2021		December 28, 2019		December 29, 2018
Number of shares repurchased	474,684		2,107,472		1,879,529
Aggregate cost of shares repurchased (dollars in thousands)	$	45,255	$	196,910	$	193,028
Average price per share	$	95.34	$	93.43	$	102.70

- 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.

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+ Details

STOCK-BASED COMPENSATION (Tables)

12 Months Ended

Jan. 02, 2021

Share-based Payment Arrangement [Abstract]

Summary of recorded stock-based compensation cost

The Company recorded stock-based compensation cost as follows:


	For the fiscal years ended
(dollars in thousands)	January 2, 2021		December 28, 2019		December 29, 2018
Stock options	$	2,694	$	4,070	$	4,788
Restricted stock:
Time-based awards	10,468		9,432		7,938
Performance-based awards	(1,927)		1,552		744
Stock awards	1,595		1,475		1,203
Total	$	12,830	$	16,529	$	14,673

Summary of stock option activity

Changes in the Company’s stock options for the fiscal year ended January 2, 2021 were as follows:


	Number of shares	Weighted- average exercise price		Weighted-average remaining contractual terms (years)	Aggregate intrinsic value (in thousands)
Outstanding, December 28, 2019	1,128,607	$	78.78

Granted(*)	—	$	—
Exercised	(193,645)	$	46.52
Forfeited	(31,758)	$	101.56
Expired	(42,493)	$	96.96
Outstanding, January 2, 2021	860,711	$	84.31	4.83	$	13,164

Vested and expected to vest, January 2, 2021	853,722	$	84.10	4.81	$	13,154
Exercisable, January 2, 2021	709,690	$	79.74	4.41	$	12,584

Assumptions used for grants and summary of stock options and restricted stock activity

The table below presents the weighted-average assumptions used to calculate the fair value of options granted in each of the respective fiscal years:


	For the fiscal years ended
	January 2, 2021(*)			December 28, 2019(*)			December 29, 2018
Expected volatility	—		%	—		%	22.93		%
Risk-free interest rate	—		%	—		%	2.75		%
Expected term (years)	0			0			6.0
Dividend yield	—		%	—		%	1.47		%
Weighted average fair value of options granted	$	—		$	—		$	27.36

Summary of restricted stock award activity

The following table summarizes activity related to all restricted stock awards during the fiscal year ended January 2, 2021:


	Restricted stock awards	Weighted-average grant-date fair value
Outstanding, December 28, 2019	458,500	$	94.58
Granted	226,970	$	105.48
Vested	(140,345)	$	89.80
Forfeited	(82,588)	$	91.83
Outstanding, January 2, 2020	462,537	$	101.87

Summary of issued shares of common stock to non-management board members


Fiscal year	Number of shares granted	Weighted-average fair value per share
2018	45,625	$	120.25
2019	60,700	$	88.87
2020	58,320	$	108.76


Fiscal year	Number of shares issued	Fair value per share		Aggregate value (in thousands)
2018	10,971	$	109.67	$	1,203
2019	16,097	$	91.63	$	1,475
2020	21,362	$	74.67	$	1,595

The Company received no proceeds from the issuance of these shares.

EMPLOYEE BENEFIT PLANS (Tables)

12 Months Ended

Jan. 02, 2021

Retirement Benefits [Abstract]

Reconciliation of changes in the projected pension benefit obligation and plan assets

A reconciliation of changes in the projected pension benefit obligation and plan assets is as follows:


	For the fiscal year ended
(dollars in thousands)	January 2, 2021		December 28, 2019
Change in projected benefit obligation:
Projected benefit obligation at beginning of year	$	68,331	$	62,297
Interest cost	2,171		2,432
Actuarial loss	6,666		6,039
Benefits paid	(3,040)		(2,437)
Projected benefit obligation at end of year	$	74,128	$	68,331

Change in plan assets:
Fair value of plan assets at beginning of year	$	61,961	$	55,564
Actual return on plan assets	6,496		8,834

Benefits paid	(3,040)		(2,437)
Fair value of plan assets at end of year	$	65,417	$	61,961

Unfunded status	$	8,711	$	6,370

Components of post retirement benefit expense and pension expense

The components of net periodic pension cost recognized in the statement of operations and changes recognized in other comprehensive income were as follows:


	For the fiscal year ended
(dollars in thousands)	January 2, 2021		December 28, 2019		December 29, 2018
Recognized in the statement of operations:
Interest cost	$	2,171	$	2,432	$	2,287
Expected return on plan assets	(3,217)		(2,613)		(2,934)
Amortization of net loss(*)	510		795		709
Net periodic pension (benefit) cost	$	(536)	$	614	$	62

Changes recognized in other comprehensive income:
Net loss (gain) arising during the fiscal year	$	3,387	$	(182)	$	1,070

Amortization of net loss(*)	(510)		(795)		(709)


Total changes recognized in other comprehensive income	$	2,877	$	(977)	$	361
Total net periodic cost and changes recognized in other comprehensive income	$	2,341	$	(363)	$	423

The components of net periodic post-retirement cost (benefit) recognized in the statement of operations and changes recognized in other comprehensive income were as follows:


	For the fiscal year ended
(dollars in thousands)		January 2, 2021		December 28, 2019		December 29, 2018
Recognized in the statement of operations:
Service cost		$	25	$	21	$	32
Interest cost		94		123		123

Amortization of net gain(*)		(345)		(396)		(289)

Net periodic post-retirement (benefit) cost		$	(226)	$	(252)	$	(134)

Changes recognized in other comprehensive income:
Net (gain) loss arising during the fiscal year		$	(162)	$	238	$	(573)



Amortization of net gain(*)		345		396		289
Total changes recognized in other comprehensive income		$	183	$	634	$	(284)
Total net periodic cost (benefit) and changes recognized in other comprehensive income		$	(43)	$	382	$	(418)

Schedule of assumptions used in actuarial computations

The actuarial computations utilized the following assumptions, using year-end measurement dates:


Benefit obligation	2020	2019
Discount rate	2.50%	3.25%

Net periodic pension cost	2020	2019	2018
Discount rate	3.25%	4.00%	3.50%
Expected long-term rate of return on assets	6.00%	5.50%	6.25%

The actuarial computations utilized the following assumptions, using year-end measurement dates:


Benefit obligation	2020	2019
Discount rate	2.00%	3.00%

Net periodic pension cost	2020	2019	2018
Discount rate	3.00%	4.00%	3.25%

Expected benefit payments for defined benefit pension plans for the next ten fiscal years

The Company currently expects benefit payments for its defined benefit pension plans as follows for the next ten fiscal years:


(dollars in thousands)
2021	$	2,780
2022	$	2,860
2023	$	2,970
2024	$	3,160
2025	$	3,370
2026-2030	$	18,710

Fair value of the Company's pension plan assets by category

The fair value of the Company’s pension plan assets at January 2, 2021 and December 28, 2019, by asset category, were as follows:


(dollars in thousands)	January 2, 2021						December 28, 2019
Asset category	Total		Level 1		Level 2		Total		Level 1		Level 2
Cash and cash equivalents	$	644	$	644	$	—	$	606	$	606	$	—
Equity securities:
U.S. Large-Cap blend(1)	9,006		9,006		—		8,673		8,673		—
U.S. Large-Cap growth	4,105		4,105		—		3,905		3,905		—
U.S. Mid-Cap growth	3,913		3,913		—		3,751		3,751		—

U.S. Small-Cap blend	2,608		2,608		—		2,511		2,511		—
International blend	9,882		9,882		—		9,408		9,408		—
Fixed income securities:
Corporate bonds(2)	31,995		31,751		244		30,051		29,779		272
Real estate(3)	3,264		3,264		—		3,056		3,056		—
	$	65,417	$	65,173	$	244	$	61,961	$	61,689	$	272

(1)This category comprises low-cost equity index funds not actively managed that track the Standard & Poor's 500 Index.

(2)This category invests in both U.S. Treasuries and mid-term corporate debt from U.S. issuers from diverse industries.

Reconciliation of accumulated post retirement benefit obligation

The following is a reconciliation of the accumulated post-retirement benefit obligation ("APBO") under this plan:


	For the fiscal years ended
(dollars in thousands)	January 2, 2021		December 28, 2019
APBO at beginning of fiscal year	$	3,311	$	3,228
Service cost	25		21
Interest cost	94		123
Actuarial (gain) loss	(162)		238
Plan participants’ contribution	9		—

Benefits paid	(279)		(299)

APBO at end of fiscal year	$	2,998	$	3,311

INCOME TAXES (Tables)

12 Months Ended

Jan. 02, 2021

Income Tax Disclosure [Abstract]

Provision for income taxes

The provision for income taxes consisted of the following:


	For the fiscal year ended
(dollars in thousands)	January 2, 2021		December 28, 2019		December 29, 2018
Current tax provision:
Federal	$	31,085	$	50,162	$	48,129
State	6,331		10,548		9,437
Foreign	11,105		16,740		17,359
Total current provision	$	48,521	$	77,450	$	74,925

Deferred tax provision (benefit):
Federal	$	(18,449)	$	(10,775)	$	(760)
State	(3,741)		(1,882)		140
Foreign	(1,064)		(643)		(398)
Total deferred provision	(23,254)		(13,300)		(1,018)
Total provision	$	25,267	$	64,150	$	73,907

The components of income before income taxes were as follows:


	For the fiscal year ended
(dollars in thousands)	January 2, 2021		December 28, 2019		December 29, 2018
Domestic	$	73,525	$	225,488	$	260,722
Foreign	61,459		102,464		95,253
Total	$	134,984	$	327,952	$	355,975

Federal statutory tax rate reconciliation

The difference between the Company’s effective income tax rate and the federal statutory tax rate is reconciled below:


	For the fiscal year ended
	January 2, 2021		December 28, 2019		December 29, 2018
Statutory federal income tax rate	21.0	%	21.0	%	21.0	%
State income taxes, net of federal income tax benefit	2.7	%	2.5	%	2.8	%
Impact of foreign operations	(4.8)	%	(2.4)	%	(1.5)	%
Settlement of uncertain tax positions	(1.3)	%	(0.7)	%	(0.4)	%
Benefit from stock-based compensation	(1.1)	%	(0.8)	%	(1.1)	%
Goodwill impairments and other	2.2	%	—	%	—	%



Total	18.7	%	19.6	%	20.8	%

Components of deferred tax assets and liabilities

The following table reflects the Company's calculation of the components of deferred tax assets and liabilities as of January 2, 2021 and December 28, 2019.


(dollars in thousands)	January 2, 2021		December 28, 2019
Deferred tax assets:	Assets (Liabilities)
Accounts receivable allowance	$	4,072	$	3,437
Inventory	11,775		7,963
Accrued liabilities	13,807		10,219
Equity-based compensation	5,039		5,222
Deferred employee benefits	7,928		7,220
Leasing liabilities	130,776		178,356
Other	4,961		3,699
Total deferred tax assets	178,358		216,116
Deferred tax liabilities:
Depreciation	(38,777)		(52,664)
Leasing assets	(107,269)		(149,085)
Tradename and licensing agreements	(76,409)		(82,592)
Other	(5,593)		(4,084)
Total deferred tax liabilities	(228,048)		(288,425)

Net deferred tax liability	$	(49,690)	$	(72,309)

Net deferred tax liability


(dollars in thousands)	January 2, 2021		December 28, 2019
	Assets (Liabilities)
Deferred tax assets	$	3,080	$	2,061
Deferred tax liabilities	(52,770)		(74,370)
Net deferred tax liability	$	(49,690)	$	(72,309)

Unrecognized tax benefits

The following is a reconciliation of the beginning and ending amount of unrecognized tax benefits:


(dollars in thousands)
Balance at December 30, 2017	$	12,193
Additions based on tax positions related to fiscal 2018	3,350
Additions for prior year tax positions	241
Reductions for lapse of statute of limitations	(1,867)

Balance at December 29, 2018	$	13,917
Additions based on tax positions related to fiscal 2019	2,197

Reductions for lapse of statute of limitations	(2,191)

Balance at December 28, 2019	$	13,923
Additions based on tax positions related to fiscal 2020	760
Reductions for prior year tax positions	(104)
Reductions for lapse of statute of limitations	(2,056)

Balance at January 2, 2021	$	12,523

EARNINGS PER SHARE (Tables)

12 Months Ended

Jan. 02, 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:


	For the fiscal year ended
		January 2, 2021		December 28, 2019		December 29, 2018
		(53 weeks)		(52 weeks)		(52 weeks)
Weighted-average number of common and common equivalent shares outstanding:
Basic number of common shares outstanding		43,242,967		44,402,438		46,160,935
Dilutive effect of equity awards		164,754		305,514		487,485
Diluted number of common and common equivalent shares outstanding		43,407,721		44,707,952		46,648,420
Earnings per share:
(dollars in thousands, except per share data)
Basic net income per common share:
Net income		$	109,717	$	263,802	$	282,068
Income allocated to participating securities		(1,118)		(2,430)		(2,148)
Net income available to common shareholders		$	108,599	$	261,372	$	279,920
Basic net income per common share		$	2.51	$	5.89	$	6.06

Diluted net income per common share:
Net income		$	109,717	$	263,802	$	282,068
Income allocated to participating securities		(1,115)		(2,419)		(2,132)
Net income available to common shareholders		$	108,602	$	261,383	$	279,936
Diluted net income per common share		$	2.50	$	5.85	$	6.00

Anti-dilutive shares excluded from dilutive earnings per share calculations(1)		564,131		351,777		289,839

(1)The volume of antidilutive shares is, in part, due to the related unamortized compensation costs.

SEGMENT INFORMATION (Tables)

12 Months Ended

Jan. 02, 2021

Segment Reporting [Abstract]

Schedule of segment information

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


	For the fiscal year ended
(dollars in thousands)	January 2, 2021 (53 weeks)		% of Consolidated Net Sales		December 28, 2019 (52 weeks)		% of Consolidated Net Sales		December 29, 2018 (52 weeks)		% of Consolidated Net Sales
Net sales:
U.S. Retail	$	1,671,644	55.3	%	$	1,884,150	53.5	%	$	1,851,193	53.5	%
U.S. Wholesale	996,088		32.9	%	1,205,646		34.3	%	1,180,687		34.1	%
International	356,602		11.8	%	429,490		12.2	%	430,389		12.4	%
Total consolidated net sales	$	3,024,334	100.0	%	$	3,519,286	100.0	%	$	3,462,269	100.0	%
Operating income (loss):			% of Segment Net Sales				% of Segment Net Sales				% of Segment Net Sales
U.S. Retail	$	146,806	8.8	%	$	225,874	12.0	%	$	224,784	12.1	%
U.S. Wholesale	141,456		14.2	%	212,558		17.6	%	224,194		19.0	%
International	(1,224)		(0.3)	%	36,650		8.5	%	39,253		9.1	%
Corporate expenses(*)	(97,169)		n/a		(103,210)		n/a		(96,798)		n/a
Total operating income	$	189,869	6.3	%	$	371,872	10.6	%	$	391,433	11.3	%

The tables below present additional segment information for our reportable segments for the periods presented:


(dollars in millions)	January 2, 2021
Charges:	U.S. Retail		U.S. Wholesale		International
Organizational restructuring(1)	$	5.0	$	2.0	$	2.2
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	9.6		9.6		2.2
Retail store operating leases and other long-lived asset impairments, net of gain(2)	7.4		—		0.3
Total charges	$	36.1	$	20.0	$	26.4

(1)The fiscal year ended January 2, 2021 also includes corporate charges related to organizational restructuring of $7.4 million.

(2)Impairments include an immaterial gain on the remeasurement of retail store operating leases.


(dollars in millions)	December 28, 2019						December 29, 2018
Charges:	U.S. Retail		U.S. Wholesale		International		U.S. Retail		U.S. Wholesale		International
Skip Hop tradename impairment charge	$	1.2	$	19.1	$	10.5	$	—	$	—	$	—
Customer bankruptcy charges	—				—		—		12.8
China business model change	—		—		—		—		—		5.3
Benefit related to sale of inventory previously reserved in China	—		—		(2.1)		—		—		—
Reversal of store restructuring costs previously recorded during the third quarter of fiscal 2017	(0.7)		—		—		—		—		—
Customer bankruptcy recovery			(0.6)		—		—		(1.9)		—
Insurance recovery associated with storm-related store closures.	—		—		—		(0.4)		—		—
Total charges(1)	$	0.5	$	18.5	$	8.4	$	(0.4)	$	10.9	$	5.3

(1)The fiscal year ended December 28, 2019 also includes corporate charges related to organizational restructuring of $1.6 million.

Inventory, net, by segment

The table below represents inventory by segment:


	For the fiscal year ended
(dollars in thousands)	January 2, 2021		December 28, 2019
U.S. Wholesale(*)	$	464,229	$	427,387
U.S. Retail	47,889		87,721
International	87,144		78,879
Total	$	599,262	$	593,987

Consolidated Net Sales by Product

The table below represents consolidated net sales by product:


	For the fiscal year ended
(dollars in thousands)	January 2, 2021 (53 weeks)		December 28, 2019 (52 weeks)		December 29, 2018 (52 weeks)
Baby	$	1,026,910	$	1,228,905	$	1,239,009
Playclothes	1,052,178		1,362,847		1,303,610
Sleepwear	441,358		428,541		431,961
Other(*)	503,888		498,993		487,689
Total net sales	$	3,024,334	$	3,519,286	$	3,462,269

(*)Other product offerings include bedding, outerwear, swimwear, shoes, socks, diaper bags, gift sets, toys, and hair accessories.

Property, plant, and equipment, net, by geographic area

The following represents property, plant, and equipment, net, by geographic area:


	For the fiscal year ended
(dollars in thousands)	January 2, 2021		December 28, 2019
United States	$	232,655	$	283,371
International	29,690		36,797
Total	$	262,345	$	320,168

OTHER CURRENT LIABILITIES (Tables)

12 Months Ended

Jan. 02, 2021

Other Liabilities Disclosure [Abstract]

Schedule of other current liabilities

Other current liabilities consisted of the following:


(dollars in thousands)	January 2, 2021		December 28, 2019
Accrued employee benefits	$	22,876	$	16,556
Income taxes payable	21,164		23,269
Unredeemed gift cards	18,300		17,563
Accrued interest	12,092		8,579
Accrued taxes	10,900		15,036
Accrued salaries and wages	10,650		4,695





Other	39,258		45,933
Other current liabilities	$	135,240	$	131,631

RESTRUCTURING (Tables)

12 Months Ended

Jan. 02, 2021

Restructuring and Related Activities [Abstract]

Restructuring and Related Costs

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


	For the fiscal year ended
(dollars in thousands)	January 2, 2021
Severance and other termination benefits	$	12,029
Lease exit costs	2,727
Relocation and recruiting	1,800
Other closure costs	80
Total	$	16,636

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended	9 Months Ended	12 Months Ended
	Mar. 28, 2020	Mar. 30, 2019	Jun. 29, 2019	Sep. 28, 2019	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Increase (Decrease) in Prepaid Expense and Other Assets					$ 9,132	$ 13,759	$ (12,121)
Restatement Adjustment Member [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Increase (Decrease) in Prepaid Expense and Other Assets	$ 29,000	$ 739,000	$ 773,000	$ 815,000		$ 828,000

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (COVID-19) (Details) - USD ($)	3 Months Ended		12 Months Ended
	Jan. 02, 2021	Mar. 28, 2020	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018	May 11, 2020
Unusual or Infrequent Items, or Both [Abstract]
Lease modifications			$ 23,700,000
Impairment of Operating lease and Other long-Lived Asset			9,000,000.0
Debt Instrument [Line Items]
Goodwill impairment	$ 0		(17,742,000)	$ 0	$ 0
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)		$ 26,500,000	26,500,000	30,800,000	0
Restructuring Charges			16,636,000
Other Tax Expense (Benefit)			3,500,000
Adverse purchase commitments (inventory and raw materials), net			14,668,000	2,106,000	2,673,000
Provisions for (recoveries of) excess and obsolete inventory, net			4,866,000	5,791,000	$ (6,954,000)
COVID 19 COST [Member]
Debt Instrument [Line Items]
Other Expenses			21,400,000
Other Expenses			21,400,000
Other Expenses			21,400,000
Restructuring Charges			2,300,000
COVID 19 EMPLOYEE RELATED COST [Member]
Debt Instrument [Line Items]
Other Expenses			12,100,000
Other Expenses			12,100,000
Other Expenses			12,100,000
COVID 19 PROTECTIVE EQUIPMENT [Member]
Debt Instrument [Line Items]
Other Expenses			8,900,000
Other Expenses			8,900,000
Other Expenses			8,900,000
Five Point Five Percent Senior Notes due Twenty Twenty Five [Member] \| Senior notes
Unusual or Infrequent Items, or Both [Abstract]
Stated interest rate						5.50%
Debt Instrument [Line Items]
Stated interest rate						5.50%
Long-term Debt, Gross	$ 500,000,000		$ 500,000,000	$ 0		$ 500,000,000

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Cash and Cash Equivalents (Details) - USD ($) $ in Thousands	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	$ 1,102,323	$ 214,311	$ 170,077	$ 178,494
Geographic Distribution, Foreign [Member]
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	$ 85,800

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Accounts Receivable) (Details) - customer	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019
Sales [Member]
Accounts Receivable [Abstract]
Number of largest wholesale customers being discussed	0
maximum disclosure percentage of net sales	10.00%
Accounts Receivable [Member]
Accounts Receivable [Abstract]
Customer concentration risk, gross accounts receivable	69.00%	52.00%
Number of largest wholesale customers being discussed	3	3
Maximum disclosure percentage for gross accounts receivable	10.00%	10.00%

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Property, Plant, and Equipment) (Details)	12 Months Ended
	Jan. 02, 2021
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life (in years)	3 years
Retail Store Fixtures, Equipment, and Computers [Member] \| Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life (in years)	3 years
Retail Store Fixtures, Equipment, and Computers [Member] \| Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life (in years)	10 years
Building and Building Improvements [Member] \| Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life (in years)	15 years
Building and Building Improvements [Member] \| Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life (in years)	26 years

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Internal-Use Software ) (Details)	12 Months Ended
	Jan. 02, 2021
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life (in years)	3 years
Computer Software [Member] \| Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life (in years)	10 years
Computer Software [Member] \| Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life (in years)	3 years

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Goodwill and Other Intangible Assets ) (Details) - USD ($)	3 Months Ended			12 Months Ended
	Jan. 02, 2021	Mar. 28, 2020	Sep. 28, 2019	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Acquired Indefinite-lived Intangible Assets [Line Items]
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)		$ 26,500,000		$ 26,500,000	$ 30,800,000	$ 0
Goodwill impairment	$ 0			17,742,000	0	$ 0
Goodwill	$ 211,776,000			$ 211,776,000	229,026,000
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount	53.00%			53.00%
Skip Hop Trade Name [Member]
Acquired Indefinite-lived Intangible Assets [Line Items]
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)		11,000,000.0	$ 30,800,000
Indefinite intangible assets	$ 15,000,000.0			$ 15,000,000.0	26,000,000
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount	40.00%			40.00%
Oshkosh Tradename [Member]
Acquired Indefinite-lived Intangible Assets [Line Items]
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)		15,500,000
Indefinite intangible assets	$ 70,000,000.0			$ 70,000,000.0	85,500,000
Sensitivity tests basis point change	100			100
Sensitivity tests discount rate change	10.00%			10.00%
Sensitivity tests royalty basis point change	25			25
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount	10.00%			10.00%
Wholesale Segment [Member]
Acquired Indefinite-lived Intangible Assets [Line Items]
Goodwill impairment				$ 0
Goodwill	$ 74,454,000			74,454,000	74,454,000
Wholesale Segment [Member] \| Skip Hop Trade Name [Member]
Acquired Indefinite-lived Intangible Assets [Line Items]
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)		6,800,000	19,100,000		19,100,000
Wholesale Segment [Member] \| Oshkosh Tradename [Member]
Acquired Indefinite-lived Intangible Assets [Line Items]
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)		1,600,000
International Segment [Member]
Acquired Indefinite-lived Intangible Assets [Line Items]
Goodwill impairment		17,742,000
Goodwill	53,388,000			53,388,000	70,638,000
International Segment [Member] \| Skip Hop Trade Name [Member]
Acquired Indefinite-lived Intangible Assets [Line Items]
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)		3,700,000	10,500,000
International Segment [Member] \| Oshkosh Tradename [Member]
Acquired Indefinite-lived Intangible Assets [Line Items]
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)		300,000
Retail Segment [Member]
Acquired Indefinite-lived Intangible Assets [Line Items]
Goodwill impairment				0
Goodwill	83,934,000			83,934,000	$ 83,934,000
Retail Segment [Member] \| Skip Hop Trade Name [Member]
Acquired Indefinite-lived Intangible Assets [Line Items]
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)		500,000	1,200,000
Retail Segment [Member] \| Oshkosh Tradename [Member]
Acquired Indefinite-lived Intangible Assets [Line Items]
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)		13,600,000
Other International Reporting Unit Member [Member]
Acquired Indefinite-lived Intangible Assets [Line Items]
Goodwill impairment		$ 17,700,000
Goodwill	$ 11,800,000			$ 11,800,000
Other International Reporting Unit Member [Member] \| Skip Hop Goodwill [Member]
Acquired Indefinite-lived Intangible Assets [Line Items]
Goodwill impairment			9,400,000
Other International Reporting Unit Member [Member] \| Carters Mexico [Member]
Acquired Indefinite-lived Intangible Assets [Line Items]
Goodwill impairment			3,100,000
Other International Reporting Unit Member [Member] \| Carter's Goodwill [Member]
Acquired Indefinite-lived Intangible Assets [Line Items]
Goodwill impairment			$ 5,200,000

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Revenue Recognition) (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Accounting Policies [Abstract]
Cooperative advertising arrangements, fair value	$ 0.5	$ 3.1	$ 3.0

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Costs of Goods Sold and Selling, General and Administrative Expenses) (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Accounting Policies [Abstract]
Wholesale shipping and handling costs	$ 190.7	$ 191.1	$ 188.9

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Supplemental Cash Flow Information) (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Accounting Policies [Abstract]
Interest paid in cash	$ 55.1	$ 36.5	$ 33.6
Income taxes paid in cash	54.7	67.6	55.9
Property, plant and equipment additions	$ 6.0	$ 1.2	$ 1.9

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Recent Accounting Pronouncements) (Details) - USD ($)	3 Months Ended		12 Months Ended
	Jan. 02, 2021	Mar. 28, 2020	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Segment Reporting Information [Line Items]
Goodwill impairment	$ 0		$ 17,742,000	$ 0	$ 0
International Segment [Member]
Segment Reporting Information [Line Items]
Goodwill impairment		$ 17,742,000

REVENUE RECOGNITION Disaggregation of Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Disaggregation of Revenue [Line Items]
Net sales	$ 3,024,334	$ 3,519,286	$ 3,462,269
Accounts receivable, gross	198,878	262,288
Accounts Receivable, Allowance for Credit Loss, Current	5,940	6,354
Receivables, Net, Current	186,512	251,005
Reclassification of Accounts Receivable Gross Current		1,691
Trade Accounts Receivable [Member]
Disaggregation of Revenue [Line Items]
Accounts receivable, gross	180,830	239,059
Reclassification of Accounts Receivable Gross Current		1,700
Royalties receivable [Member]
Disaggregation of Revenue [Line Items]
Accounts receivable, gross	5,733	6,982
Tenant allowances and other receivables [Member]
Disaggregation of Revenue [Line Items]
Accounts receivable, gross	12,315	16,247
SEC Schedule, 12-09, Allowance, Credit Loss [Member]
Disaggregation of Revenue [Line Items]
Accounts Receivable, Allowance for Credit Loss, Current	12,366	11,283
5130 Wholesale, Apparel, Piece Goods and Notions [Member]
Disaggregation of Revenue [Line Items]
Net sales	1,116,332	1,369,439	1,344,324
5600 Retail, Apparel and Accessory Stores [Member]
Disaggregation of Revenue [Line Items]
Net sales	1,908,002	2,149,847	2,117,945
Licensing Agreements [Member]
Disaggregation of Revenue [Line Items]
Net sales	26,276	34,637	38,930
Retail Segment [Member]
Disaggregation of Revenue [Line Items]
Net sales	1,671,644	1,884,150	1,851,193
Retail Segment [Member] \| 5130 Wholesale, Apparel, Piece Goods and Notions [Member]
Disaggregation of Revenue [Line Items]
Net sales	0	0	0
Retail Segment [Member] \| 5600 Retail, Apparel and Accessory Stores [Member]
Disaggregation of Revenue [Line Items]
Net sales	1,671,644	1,884,150	1,851,193
Retail Segment [Member] \| Licensing Agreements [Member]
Disaggregation of Revenue [Line Items]
Net sales	8,732	12,990	12,877
Wholesale Segment [Member]
Disaggregation of Revenue [Line Items]
Net sales	996,088	1,205,646	1,180,687
Wholesale Segment [Member] \| 5130 Wholesale, Apparel, Piece Goods and Notions [Member]
Disaggregation of Revenue [Line Items]
Net sales	996,088	1,205,646	1,180,687
Wholesale Segment [Member] \| 5600 Retail, Apparel and Accessory Stores [Member]
Disaggregation of Revenue [Line Items]
Net sales	0	0	0
Wholesale Segment [Member] \| Licensing Agreements [Member]
Disaggregation of Revenue [Line Items]
Net sales	13,120	17,670	22,511
International [Member]
Disaggregation of Revenue [Line Items]
Net sales	356,602	429,490	430,389
International [Member] \| 5130 Wholesale, Apparel, Piece Goods and Notions [Member]
Disaggregation of Revenue [Line Items]
Net sales	120,244	163,793	163,637
International [Member] \| 5600 Retail, Apparel and Accessory Stores [Member]
Disaggregation of Revenue [Line Items]
Net sales	236,358	265,697	266,752
International [Member] \| Licensing Agreements [Member]
Disaggregation of Revenue [Line Items]
Net sales	$ 4,424	$ 3,977	$ 3,542

REVENUE RECOGNITION Wholesale accounts receivable reserves (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]
SEC Schedule, 12-09, Valuation Allowances and Reserves, Amount	$ 12,366	$ 11,283	$ 11,866	$ 13,736
SEC Schedule, 12-09, Valuation Allowances and Reserves, Additions, Charge to Cost and Expense	9,625	9,047	30,280
SEC Schedule, 12-09, Valuation Allowances and Reserves, Deduction	(8,542)	(7,939)	$ (32,150)
Reclassification of Accounts Receivable Gross Current		$ 1,691
Accounts Receivable, Allowance for Credit Loss, Writeoff	$ 6,500

REVENUE RECOGNITION (Contract Assets and Liabilities) (Details) - USD ($) $ in Thousands	Jan. 02, 2021	Dec. 28, 2019
Revenue from Contract with Customer [Abstract]
Unredeemed gift cards	$ 18,300	$ 17,563
Contract with Customer, Refund Liability, Current	5,241	5,615
Contract with Customer Private label credit card	714
Contract with Customer, Liability, Current	24,255	23,892
Contract with Customer, Liability, Noncurrent	2,857	3,571
Contract with Customer, Liability, Total	$ 27,112	$ 27,463

LEASES (Operating lease term of contract and Other) (Details) $ in Thousands	12 Months Ended
	Jan. 02, 2021 USD ($) numberOfLeaseAgreements	Dec. 29, 2018 USD ($)
Lessee, Lease, Description [Line Items]
Renegotiated Lease Agreements \| numberOfLeaseAgreements	725
Lease modifications	$ 23,700
Operating Lease, Impairment Loss	7,400
Lessee Operating Lease Lease Not yet Commenced Liability Incurred	$ 10,900
Operating Leases, Rent Expense, Net		$ 165,600
Minimum
Lessee, Lease, Description [Line Items]
Initial term of lease	1 year
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract	7 years
Maximum
Lessee, Lease, Description [Line Items]
Initial term of lease	10 years
Lessee, Operating Lease, Option to Extend	5
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract	11 years

LEASES (Expense) (Details) - USD ($) $ in Thousands	12 Months Ended
LEASES (Expense) (Details) - USD ($) $ in Thousands	Jan. 02, 2021	Dec. 28, 2019
Leases [Abstract]
Operating lease cost	$ 180,056	$ 179,982
Variable Lease, Cost	71,971	63,043
Lease, Cost, Total	$ 252,027	$ 243,025

LEASES (Supplemental balance sheet information) (Details) - USD ($)	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019
Leases [Abstract]
Operating Lease, Weighted Average Remaining Lease Term	5 years 4 months 24 days	6 years
Operating Lease, Weighted Average Discount Rate, Percent	3.33%	4.35%
Operating Lease, Payments	$ 161,700,000	$ 193,500,000
Non-cash transactions to recognize operating assets and liabilities	$ 62,600,000	$ 110,000,000.0

LEASES (Maturities of lease liabilities) (Details) $ in Thousands	Jan. 02, 2021 USD ($)
Leases [Abstract]
2021	$ 206,814
2022	159,350
2023	130,646
2024	105,515
2025	77,134
After 2025	129,195
Total lease payments	808,654
Lessee, Operating Lease, Liability, Undiscounted Excess Amount	(69,005)
Operating Lease, Liability	$ 739,649

PROPERTY, PLANT, AND EQUIPMENT (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 846,325	$ 844,016
Accumulated depreciation and amortization	(583,980)	(523,848)
Property, plant, and equipment, net	262,345	320,168
Depreciation, Depletion and Amortization, Nonproduction	90,300	92,200	$ 85,900
Land, Buildings, and Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	358,121	363,428
Furniture And Fixtures And Computer Hardware
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	308,260	297,930
Computer Software, Intangible Asset [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	159,558	161,104
Marketing Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	9,819	11,160
Construction in Progress [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 10,567	$ 10,394

GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($)	3 Months Ended			12 Months Ended
	Jan. 02, 2021	Mar. 28, 2020	Sep. 28, 2019	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Goodwill and Other Intangible Assets [Line Items]
Goodwill, Gross amount						$ 227,101,000
Foreign currency impact				$ 492,000	$ 1,925,000
Goodwill	$ 211,776,000			211,776,000	229,026,000
Goodwill impairment	0			(17,742,000)	0	0
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)		$ 26,500,000		26,500,000	30,800,000	0
Amortization of intangible assets				3,700,000
Year one	3,737,000			3,737,000
Year two	3,737,000			3,737,000
Year three	3,695,000			3,695,000
Year four	3,665,000			3,665,000
Year five	3,665,000			3,665,000
Goodwill, Impaired, Accumulated Impairment Loss	17,700,000			17,700,000
Retail Segment [Member]
Goodwill and Other Intangible Assets [Line Items]
Goodwill, Gross amount						83,934,000
Foreign currency impact				0	0
Goodwill	83,934,000			83,934,000	83,934,000
Goodwill impairment				0
Wholesale Segment [Member]
Goodwill and Other Intangible Assets [Line Items]
Goodwill, Gross amount						74,454,000
Foreign currency impact					0
Goodwill	74,454,000			74,454,000	74,454,000
Goodwill impairment				0
International Segment [Member]
Goodwill and Other Intangible Assets [Line Items]
Goodwill, Gross amount						$ 68,713,000
Foreign currency impact				492,000	1,925,000
Goodwill	53,388,000			53,388,000	70,638,000
Goodwill impairment		(17,742,000)
Goodwill, Impaired, Accumulated Impairment Loss	17,700,000			17,700,000
Other International Reporting Unit Member [Member]
Goodwill and Other Intangible Assets [Line Items]
Goodwill	11,800,000			11,800,000
Goodwill impairment		(17,700,000)
Other Tradenames [Member]
Goodwill and Other Intangible Assets [Line Items]
Finite intangible assets, Gross amount	3,911,000			3,911,000	3,911,000
Finite intangible assets, Accumulated amortization	1,251,000			1,251,000	1,002,000
Finite intangible assets, Net amount	2,660,000			$ 2,660,000	2,909,000
Other Tradenames [Member] \| Minimum
Goodwill and Other Intangible Assets [Line Items]
Weighted-average useful life				5 years
Other Tradenames [Member] \| Maximum
Goodwill and Other Intangible Assets [Line Items]
Weighted-average useful life				20 years
Tradenames [Member]
Goodwill and Other Intangible Assets [Line Items]
Finite intangible assets, Gross amount	309,144,000			$ 309,144,000	335,644,000
Finite intangible assets, Accumulated amortization	1,251,000			1,251,000	1,002,000
Finite intangible assets, Net amount	307,893,000			$ 307,893,000	334,642,000
Skip Hop Customer Relationships [Member]
Goodwill and Other Intangible Assets [Line Items]
Weighted-average useful life				15 years
Finite intangible assets, Gross amount	47,300,000			$ 47,300,000	47,300,000
Finite intangible assets, Accumulated amortization	11,834,000			11,834,000	8,657,000
Finite intangible assets, Net amount	35,466,000			$ 35,466,000	38,643,000
Carters Mexico Customer Relationships [Member]
Goodwill and Other Intangible Assets [Line Items]
Weighted-average useful life				10 years
Finite intangible assets, Gross amount	3,108,000			$ 3,108,000	3,258,000
Finite intangible assets, Accumulated amortization	1,064,000			1,064,000	775,000
Finite intangible assets, Net amount	2,044,000			2,044,000	2,483,000
Customer Relationships [Member]
Goodwill and Other Intangible Assets [Line Items]
Finite intangible assets, Gross amount	50,408,000			50,408,000	50,558,000
Finite intangible assets, Accumulated amortization	12,898,000			12,898,000	9,432,000
Finite intangible assets, Net amount	37,510,000			37,510,000	41,126,000
Carter's Goodwill [Member] \| Other International Reporting Unit Member [Member]
Goodwill and Other Intangible Assets [Line Items]
Goodwill impairment			$ (5,200,000)
Skip Hop Goodwill [Member] \| Other International Reporting Unit Member [Member]
Goodwill and Other Intangible Assets [Line Items]
Goodwill impairment			(9,400,000)
Carters Mexico [Member] \| Other International Reporting Unit Member [Member]
Goodwill and Other Intangible Assets [Line Items]
Goodwill impairment			(3,100,000)
Carter's Tradename [Member]
Goodwill and Other Intangible Assets [Line Items]
Indefinite intangible assets	220,233,000			220,233,000	220,233,000
Oshkosh Tradename [Member]
Goodwill and Other Intangible Assets [Line Items]
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)		15,500,000
Indefinite intangible assets	70,000,000.0			70,000,000.0	85,500,000
Oshkosh Tradename [Member] \| Retail Segment [Member]
Goodwill and Other Intangible Assets [Line Items]
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)		13,600,000
Oshkosh Tradename [Member] \| Wholesale Segment [Member]
Goodwill and Other Intangible Assets [Line Items]
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)		1,600,000
Oshkosh Tradename [Member] \| International Segment [Member]
Goodwill and Other Intangible Assets [Line Items]
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)		300,000
Skip Hop Trade Name [Member]
Goodwill and Other Intangible Assets [Line Items]
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)		11,000,000.0	30,800,000
Indefinite intangible assets	$ 15,000,000.0			$ 15,000,000.0	26,000,000
Skip Hop Trade Name [Member] \| Retail Segment [Member]
Goodwill and Other Intangible Assets [Line Items]
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)		500,000	1,200,000
Skip Hop Trade Name [Member] \| Wholesale Segment [Member]
Goodwill and Other Intangible Assets [Line Items]
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)		6,800,000	19,100,000		$ 19,100,000
Skip Hop Trade Name [Member] \| International Segment [Member]
Goodwill and Other Intangible Assets [Line Items]
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)		$ 3,700,000	$ 10,500,000

ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Defined Benefit Plan Disclosure [Line Items]
Cumulative translation adjustment, beginning balance	$ (26,522)	$ (32,964)	$ (21,285)
Cumulative translation adjustment, current year change	5,215	6,442	(11,679)
Cumulative translation adjustment, ending balance	(21,307)	(26,522)	(32,964)
Accumulated other comprehensive income (loss), beginning balance	(35,634)	(40,839)	(29,093)
Total other comprehensive income (loss)	2,874	6,705	(11,746)
Accumulated other comprehensive income (loss), ending balance	(32,760)	(35,634)	(40,839)
Other Comprehensive Income (Loss), Defined Benefit Plans, Net Unrealized Gain (Loss) Arising During Period, Net of Tax	(2,197)	746	(281)
Other Comprehensive Income (Loss), Postretirement Benefit Obligations, Net Unrealized Gain (Loss) Arising During Period, Net of Tax	(144)	(483)	214
Tax Cuts and Jobs Act, Reclassification from AOCI to Retained Earnings, Tax Effect		0
Pension Plans
Defined Benefit Plan Disclosure [Line Items]
Pension/post-retirement liability adjustment, beginning balance	(10,696)	(9,562)	9,281
Pension/post-retirement liability adjustment, current year change		(746)	281
Pension/post-retirement liability adjustment, ending balance	(12,893)	(10,696)	(9,562)
Pension/post-retirement liability adjustments, tax benefit	4,000	3,300
Tax Cuts and Jobs Act, Reclassification from AOCI to Retained Earnings, Tax Effect		1,880
Postretirement Benefit
Defined Benefit Plan Disclosure [Line Items]
Pension/post-retirement liability adjustment, beginning balance	1,584	1,687	(1,473)
Pension/post-retirement liability adjustment, current year change		483	(214)
Pension/post-retirement liability adjustment, ending balance	1,440	1,584	$ 1,687
Pension/post-retirement liability adjustments, tax benefit	$ 500	500
Tax Cuts and Jobs Act, Reclassification from AOCI to Retained Earnings, Tax Effect		(380)
Accumulated Other Comprehensive Income (Loss) [Member]
Defined Benefit Plan Disclosure [Line Items]
Tax Cuts and Jobs Act, Reclassification from AOCI to Retained Earnings, Tax Effect		$ 1,500

LONG-TERM DEBT (Schedule) (Details) - USD ($)	Jan. 02, 2021	May 11, 2020	Dec. 28, 2019
Debt Instrument [Line Items]
Total long-term debt, net	$ 989,530,000		$ 594,672,000
Long-term debt, BS			594,672,000
Total Senior Notes Member
Debt Instrument [Line Items]
Long-term Debt, Gross	1,000,000,000		500,000,000
Debt Issuance Costs, Net	(10,470,000)		(5,328,000)
Senior notes, net	989,530,000		494,672,000
Long-term debt, BS	1,000,000,000.00
Secured revolving credit facility
Debt Instrument [Line Items]
Secured revolving credit facility	0		100,000,000
Five Point Five Percent Senior Notes due Twenty Twenty Five [Member] \| Senior notes
Debt Instrument [Line Items]
Long-term Debt, Gross	500,000,000	$ 500,000,000	0
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

LONG-TERM DEBT (Secured Revolving Credit Facility) (Details) - USD ($)	3 Months Ended	12 Months Ended
	Jun. 27, 2020	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018	May 11, 2020	May 04, 2020
Debt Instrument [Line Items]
Borrowings under secured revolving credit facility		$ 644,000,000	$ 265,000,000	$ 290,000,000
Outstanding letters of credit		5,000,000.0	5,000,000.0
Canada, Dollars
Debt Instrument [Line Items]
Secured revolving credit facility		$ 0
Restricted Period [Member]
Debt Instrument [Line Items]
Minimum liquidity						$ 700,000,000
LIBOR [Member]
Debt Instrument [Line Items]
Stated interest rate		1.625%				2.125%
Base Rate [Member]
Debt Instrument [Line Items]
Stated interest rate		0.625%				1.125%
Secured revolving credit facility
Debt Instrument [Line Items]
Borrowings under secured revolving credit facility		$ 639,000,000.0
Repayments of Lines of Credit	$ 500,000,000
Secured revolving credit facility		0	100,000,000
Available for future borrowing		745,000,000.0	$ 645,000,000.0
Debt Issuance Costs, Gross		1,200,000
Secured revolving credit facility \| LIBOR [Member]
Debt Instrument [Line Items]
Debt, Weighted Average Interest Rate			3.42%
Senior notes \| Five Point Five Percent Senior Notes due Twenty Twenty Five [Member]
Debt Instrument [Line Items]
Proceeds from senior notes due 2027		500,000,000
Stated interest rate					5.50%
Debt Issuance Costs, Gross			$ 5,800,000		$ 6,500,000
Long-term Debt, Gross		$ 500,000,000	$ 0		$ 500,000,000

LONG-TERM DEBT (Terms of the Secured Revolving Credit Facility ) (Details) $ in Thousands		12 Months Ended
	Aug. 25, 2017 USD ($)	Jan. 02, 2021 USD ($)	May 11, 2020 USD ($)	May 04, 2020 USD ($)	Dec. 28, 2019 USD ($)
Debt Instrument [Line Items]
Line of Credit Facility, Commitment Fee Percentage		0.35%
Line of Credit Facility, Commitment Fee Percentage		0.35%
Restricted Period [Member]
Debt Instrument [Line Items]
Minimum liquidity				$ 700,000
Minimum
Debt Instrument [Line Items]
Line of Credit Facility, Commitment Fee Percentage		0.15%
Line of Credit Facility, Commitment Fee Percentage		0.15%
Maximum
Debt Instrument [Line Items]
Line of Credit Facility, Commitment Fee Percentage		0.40%
Line of Credit Facility, Commitment Fee Percentage		0.40%
LIBOR [Member]
Debt Instrument [Line Items]
Stated interest rate		1.625%		2.125%
LIBOR [Member] \| Minimum
Debt Instrument [Line Items]
Stated interest rate				1.125%
LIBOR [Member] \| Maximum
Debt Instrument [Line Items]
Stated interest rate				2.375%
Base Rate [Member]
Debt Instrument [Line Items]
Stated interest rate		0.625%		1.125%
Base Rate [Member] \| Minimum
Debt Instrument [Line Items]
Stated interest rate				0.125%
Base Rate [Member] \| Maximum
Debt Instrument [Line Items]
Stated interest rate				1.375%
Senior notes \| Five Point Five Percent Senior Notes due Twenty Twenty Five [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross		$ 500,000	$ 500,000		$ 0
Stated interest rate			5.50%
Senior notes \| Amended Credit Facility [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross				$ 500,000
Secured revolving credit facility
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 750,000
Consolidated leverage ratio	2.25
Secured revolving credit facility \| Fourth fiscal quarter of 2021 [Member]
Debt Instrument [Line Items]
Consolidated leverage ratio		4.00
Debt covenant, fixed charge coverage ratio		1.85
Secured revolving credit facility \| First fiscal quarter of 2021 [Member]
Debt Instrument [Line Items]
Consolidated leverage ratio		5.50
Debt covenant, fixed charge coverage ratio		1.25
Secured revolving credit facility \| United States Dollar Credit Facility [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 650,000
Secured revolving credit facility \| United States Dollar Credit Facility [Member] \| Standby Letters of Credit [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity	100,000
Secured revolving credit facility \| United States Dollar Credit Facility [Member] \| Bridge Loan [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity	70,000
Secured revolving credit facility \| Multicurrency Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity	100,000
Secured revolving credit facility \| Multicurrency Revolving Credit Facility [Member] \| Standby Letters of Credit [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity	40,000
Secured revolving credit facility \| Multicurrency Revolving Credit Facility [Member] \| Bridge Loan [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity	15,000
Secured revolving credit facility \| Amended Credit Facility [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity	425,000
Secured revolving credit facility \| Amended Credit Facility [Member] \| United States Dollar Credit Facility [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity	350,000
Secured revolving credit facility \| Amended Credit Facility [Member] \| Multicurrency Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 75,000

LONG-TERM DEBT (Senior Notes) (Details) - USD ($)
$ in Thousands

12 Months Ended

Mar. 14, 2019

Jan. 02, 2021

Dec. 28, 2019

Dec. 29, 2018

May 11, 2020

Debt Instrument [Line Items]

Gain (Loss) on Extinguishment of Debt

$ 0

$ (7,823)

$ 0

Payment for Debt Extinguishment or Debt Prepayment Cost

$ 0

5,252

$ 0

Guarantor subsidiaries percentage of ownership

10000.00%

Schedule of redemption price applicable where redemption occurs

The redemption price is applicable when the redemption occurs during the twelve-month period beginning on May 15 of each of the years indicated is as follows:


Year	Percentage
2022	102.75	%
2023	101.38	%
2024 and thereafter	100.00	%

The

redemption price is applicable when the redemption occurs during the twelve-month period beginning on March 15 of each of the years indicated is as follows:


Year	Percentage
2022	102.81	%
2023	101.41	%
2024 and thereafter	100.00	%

Affirmative covenants

25.00%

Five Point Five Percent Senior Notes due Twenty Twenty Five [Member] | Senior notes

Debt Instrument [Line Items]

Long-term Debt, Gross

$ 500,000

Stated interest rate

5.50%

Proceeds from Issuance of Debt

$ 494,800

494,500

Debt Issuance Costs, Gross

5,800

$ 6,500

Five Point Two Five Percent Senior Notes due Twenty Twenty Seven Member [Member] | Senior notes

Debt Instrument [Line Items]

Long-term Debt, Gross

$ 400,000

Stated interest rate

5.25%

Redemption price, percentage

1.31%

Gain (Loss) on Extinguishment of Debt

7,800

Payment for Debt Extinguishment or Debt Prepayment Cost

5,200

Debt Issuance Costs, Net

2,600

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

Stated interest rate

5.625%

LONG-TERM DEBT Redemption Schedule (Details) - Senior notes	12 Months Ended
	Jan. 02, 2021
Debt Instrument, Redemption, Period One [Member] \| Five Point Five Percent Senior Notes due Twenty Twenty Five [Member]
Debt Instrument, Redemption [Line Items]
Redemption price, percentage	102.75%
Debt Instrument, Redemption, Period One [Member] \| Five Point Six Two Five Percent Senior Notes due Twenty Twenty Seven Member
Debt Instrument, Redemption [Line Items]
Redemption price, percentage	102.81%
Debt Instrument, Redemption, Period Two [Member] \| Five Point Five Percent Senior Notes due Twenty Twenty Five [Member]
Debt Instrument, Redemption [Line Items]
Redemption price, percentage	101.38%
Debt Instrument, Redemption, Period Two [Member] \| Five Point Six Two Five Percent Senior Notes due Twenty Twenty Seven Member
Debt Instrument, Redemption [Line Items]
Redemption price, percentage	101.41%
Debt Instrument, Redemption, Period Three [Member] \| Five Point Five Percent Senior Notes due Twenty Twenty Five [Member]
Debt Instrument, Redemption [Line Items]
Redemption price, percentage	100.00%
Debt Instrument, Redemption, Period Three [Member] \| Five Point Six Two Five Percent Senior Notes due Twenty Twenty Seven Member
Debt Instrument, Redemption [Line Items]
Redemption price, percentage	100.00%

COMMON STOCK ( Total Authorizations and Share Repurchases) (Details) - USD ($) $ / shares in Units, $ in Thousands			12 Months Ended
	Feb. 13, 2020	Feb. 22, 2018	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Equity [Abstract]
Stock repurchase, additional authorized amount	$ 500,000	$ 500,000
Stock repurchase, authorized amount	$ 1,960,000
Stock Repurchased During Period, Shares			474,684	2,107,472	1,879,529
Stock Repurchased During Period, Value			$ 45,255	$ 196,910	$ 193,028
Average price of repurchased and retired shares			$ 95.34	$ 93.43	$ 102.70
Remaining capacity under authorization			$ 650,400

COMMON STOCK (Dividends) (Details) - $ / shares	3 Months Ended					12 Months Ended
COMMON STOCK (Dividends) (Details) - $ / shares	Mar. 28, 2020	Dec. 28, 2019	Sep. 28, 2019	Jun. 29, 2019	Mar. 30, 2019	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Equity [Abstract]
Dividend declared and paid per common share	$ 0.60	$ 0.50	$ 0.50	$ 0.50	$ 0.50	$ 0.60	$ 2.00	$ 1.80

COMMON STOCK (Details) - USD ($) $ / shares in Units, $ in Millions			3 Months Ended					12 Months Ended
	Feb. 13, 2020	Feb. 22, 2018	Mar. 28, 2020	Dec. 28, 2019	Sep. 28, 2019	Jun. 29, 2019	Mar. 30, 2019	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Equity [Abstract]
Stock repurchase, additional authorized amount	$ 500	$ 500
Dividend declared and paid per common share			$ 0.60	$ 0.50	$ 0.50	$ 0.50	$ 0.50	$ 0.60	$ 2.00	$ 1.80

STOCK-BASED COMPENSATION (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018	May 17, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Increase in the number of shares under the existing plan (in shares)				3,000,000
Original number of shares available under the plan (in shares)				15,778,392
Stock available under the existing plan (in shares)				18,778,392
Available for grant under the Plan (in shares)	3,293,796
Intrinsic value of basic stock options exercised	$ 8.2	$ 13.3	$ 16.6
Weighted- average exercise price per share, Exercisable (in dollars per share)	$ 79.74
Vested and expected to vest (in shares)	853,722
Weighted- average exercise price per share, Vested and Expected to Vest (in dollars per share)	$ 84.10
Weighted-average expense recognition period (in years)	2 years 7 months 6 days
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period	140,345	131,924	151,321
Granted (in shares)	226,970
Granted (in dollars per share)	$ 105.48
Vested (in dollars per share)	$ 89.80	$ 93.03	$ 84.56
Shares outstanding (in shares)	462,537	458,500
Weighted-average grant-date fair value outstanding (in dollars per share)	$ 101.87	$ 94.58
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	4 years
Unrecognized compensation cost	$ 1.6
Weighted-average expense recognition period (in years)	1 year 1 month 6 days
Performance-based Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	3 years
Unrecognized compensation cost	$ 0.0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period	15,136
Vested (in dollars per share)	$ 83.84
Shares outstanding (in shares)	153,744
Weighted-average grant-date fair value outstanding (in dollars per share)	$ 104.16
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost	$ 19.8
Time-based restricted stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost	$ 19.8
Weighted-average expense recognition period (in years)	2 years 7 months 6 days
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period	125,209	102,492	100,625
Vested (in dollars per share)	$ 90.52	$ 93.70	$ 85.64
Performance-based restricted stock awards to the CEO
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	58,320	60,700	45,625
Granted (in dollars per share)	$ 108.76	$ 88.87	$ 120.25

STOCK-BASED COMPENSATION (Stock-Based Compensation by Award Type) (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period	140,345	131,924	151,321
Stock-based compensation	$ 12,830	$ 16,529	$ 14,673
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	$ 12,830	$ 16,529	$ 14,673
Vested (in dollars per share)	$ 89.80	$ 93.03	$ 84.56
Shares outstanding (in shares)	462,537	458,500
Weighted-average grant-date fair value outstanding (in dollars per share)	$ 101.87	$ 94.58
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	$ 2,694	$ 4,070	$ 4,788
Time-based restricted stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period	125,209	102,492	100,625
Vested (in dollars per share)	$ 90.52	$ 93.70	$ 85.64
Time-based awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	$ 10,468	$ 9,432	$ 7,938
Performance-based Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period	15,136
Stock-based compensation	$ (1,927)	1,552	744
Vested (in dollars per share)	$ 83.84
Shares outstanding (in shares)	153,744
Weighted-average grant-date fair value outstanding (in dollars per share)	$ 104.16
Stock awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	$ 1,595	$ 1,475	$ 1,203

STOCK-BASED COMPENSATION (Stock Option Activity) (Details) $ / shares in Units, $ in Thousands	12 Months Ended
	Jan. 02, 2021 USD ($) $ / shares shares
Stock Options (Number of shares)
Outstanding, beginning balance (in shares) \| shares	1,128,607
Granted (in shares) \| shares	0
Exercised (in shares) \| shares	(193,645)
Forfeited (in shares) \| shares	(31,758)
Expired (in shares) \| shares	(42,493)
Outstanding, ending balance (in shares) \| shares	860,711
Vested and expected to vest (in shares) \| shares	853,722
Exercisable (in shares) \| shares	709,690
Stock Options (Weighted-average exercise price)
Weighted- average exercise price per share beginning balance (in dollars per share) \| $ / shares	$ 78.78
Granted (in dollars per share) \| $ / shares	0
Exercised (in dollars per share) \| $ / shares	46.52
Forfeited (in dollars per share) \| $ / shares	101.56
Expired (in dollars per share) \| $ / shares	96.96
Weighted- average exercise price per share ending balance (in dollars per share) \| $ / shares	84.31
Weighted- average exercise price per share, Vested and Expected to Vest (in dollars per share) \| $ / shares	84.10
Weighted- average exercise price per share, Exercisable (in dollars per share) \| $ / shares	$ 79.74
Weighted-average remaining contractual terms (years), Outstanding	4 years 9 months 29 days
Weighted-average remaining contractual terms (years), Vested and Expected to Vest	4 years 9 months 21 days
Weighted-average remaining contractual terms (years), Exercisable	4 years 4 months 28 days
Aggregate intrinsic value, Outstanding \| $	$ 13,164
Aggregate intrinsic value, Vested and Expected to Vest \| $	13,154
Aggregate intrinsic value, Exercisable \| $	$ 12,584

STOCK-BASED COMPENSATION (Weighted-Average Assumptions) (Details) - Stock options - $ / shares	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected Volatility	0.00%	0.00%	22.93%
Risk-free interest rate	0.00%	0.00%	2.75%
Expected term (years)	0 years	0 years	6 years
Dividend yield	0.00%	0.00%	1.47%
Weighted average fair value of options granted (in USD per share)	$ 0	$ 0	$ 27.36

STOCK-BASED COMPENSATION (Restricted Stock Activity) (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018	Jan. 02, 2021
Restricted Stock
Shares outstanding (in shares)	458,500
Granted (in shares)	226,970
Vested (in shares)	(140,345)	(131,924)	(151,321)
Forfeited (in shares)	(82,588)
Shares outstanding (in shares)	462,537	458,500
Weighted-average grant-date fair value
Weighted-average grant-date fair value outstanding (in dollars per share)	$ 101.87	$ 94.58		$ 101.87
Granted (in dollars per share)	105.48
Vested (in dollars per share)	89.80	93.03	$ 84.56
Forfeited (in dollars per share)	91.83
Weighted-average grant-date fair value outstanding (in dollars per share)	$ 101.87	$ 94.58
Weighted-average expense recognition period (in years)	2 years 7 months 6 days
Performance-based restricted stock awards to the CEO
Restricted Stock
Granted (in shares)	58,320	60,700	45,625
Weighted-average grant-date fair value
Granted (in dollars per share)	$ 108.76	$ 88.87	$ 120.25
Time-based restricted stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost				$ 19.8
Restricted Stock
Vested (in shares)	(125,209)	(102,492)	(100,625)
Weighted-average grant-date fair value
Vested (in dollars per share)	$ 90.52	$ 93.70	$ 85.64
Weighted-average expense recognition period (in years)	2 years 7 months 6 days
Time-based restricted stock [Member] \| Minimum
Weighted-average grant-date fair value
Vesting period (in years)	3 years
Time-based restricted stock [Member] \| Maximum
Weighted-average grant-date fair value
Vesting period (in years)	4 years
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost				19.8
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost				$ 0.0
Restricted Stock
Vested (in shares)	(15,136)
Shares outstanding (in shares)	153,744
Weighted-average grant-date fair value
Weighted-average grant-date fair value outstanding (in dollars per share)	$ 104.16			$ 104.16
Vested (in dollars per share)	83.84
Weighted-average grant-date fair value outstanding (in dollars per share)	$ 104.16
Vesting period (in years)	3 years

STOCK-BASED COMPENSATION (Non-Management Board Directors) (Details) - USD ($)	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value per share	$ 105.48
Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Proceeds from Issuance of Common Stock	$ 0
Number of shares issued	21,362	16,097	10,971
Fair value per share	$ 74.67	$ 91.63	$ 109.67
Aggregate value	$ 1,595,000	$ 1,475,000	$ 1,203,000

EMPLOYEE BENEFIT PLANS (Defined Benefit Plans Narratives) (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Defined Benefit Plan Disclosure [Line Items]
Expected long-term rate of return on assets	6.00%
Contribution	$ 300
Pension Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Assumptions Used in Calculation, Description	0.25%
Defined Benefit Plan, Benefit Obligation	$ 74,128	$ 68,331	$ 62,297
Defined Benefit Plan, Funded (Unfunded) Status of Plan	8,711	$ 6,370
Effect of 0.25% increase on projected benefit obligation	$ 2,500
Expected long-term rate of return on assets	6.00%	5.50%	6.25%
Benefit payments	$ 2,780
Expected contribution and benefit payment, five years subsequent to 2017	18,710
2022	$ 2,860
Pension Plans \| Equity Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Target allocation for plan assets in equity securities (as a percent)	45.00%
Pension Plans \| Bond Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Target allocation for plan assets in equity securities (as a percent)	50.00%
Pension Plans \| Real Estate Investments [Member]
Defined Benefit Plan Disclosure [Line Items]
Target allocation for plan assets in equity securities (as a percent)	5.00%

EMPLOYEE BENEFIT PLANS (Benefit Obligation and Plan Assets) (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Change in plan assets:
Contribution	$ 300
Pension Plans
Change in projected benefit obligation:
Benefit obligation at beginning of period	68,331	$ 62,297
Interest cost	2,171	2,432	$ 2,287
Actuarial (gain) loss	6,666	6,039
Benefits paid	(3,040)	(2,437)
Benefit obligation at end of period	74,128	68,331	62,297
Change in plan assets:
Fair value of plan assets at beginning of year	61,961	55,564
Actual return on plan assets	6,496	8,834
Fair value of plan assets at end of year	65,417	61,961	55,564
Defined Benefit Plan, Benefit Obligation, Benefits Paid	3,040	2,437
Postretirement Benefit
Change in projected benefit obligation:
Benefit obligation at beginning of period	3,311	3,228
Service cost	25	21	32
Interest cost	94	123	123
Actuarial (gain) loss	(162)	238
Plan participants' contribution	9	0
Benefit obligation at end of period	2,998	3,311	$ 3,228
Change in plan assets:
Defined Benefit Plan, Benefit Obligation, Benefits Paid	279	299
Postretirement Benefit \| Other Long Term Liabilities
Change in projected benefit obligation:
Benefit obligation at beginning of period	3,000
Benefit obligation at end of period	$ 2,700	$ 3,000

EMPLOYEE BENEFIT PLANS (Net Periodic (Benefit) Cost) (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Pension Plans
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Interest cost on accumulated benefit obligation	$ 2,171	$ 2,432	$ 2,287
Expected return on assets	(3,217)	(2,613)	(2,934)
Amortization of net actuarial gain (loss)	510	795	709
Total net periodic (benefit) cost	(536)	614	62
Total net periodic cost (benefit) and changes recognized in OCI	2,341	363	423
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax [Abstract]
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), Gain (Loss), before Tax	3,387	(182)	1,070
Amortization of actuarial gain/loss	(510)	(795)	(709)
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax	2,877	(977)	361
Postretirement Benefit
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service cost - benefits attributed to service during the period	25	21	32
Interest cost on accumulated benefit obligation	94	123	123
Amortization of net actuarial gain (loss)	(345)	(396)	(289)
Total net periodic (benefit) cost	(226)	(252)	(134)
Total net periodic cost (benefit) and changes recognized in OCI	43	382	418
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax [Abstract]
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), Gain (Loss), before Tax	(162)	238	(573)
Amortization of actuarial gain/loss	(345)	(396)	(289)
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax	183	$ 634	$ (284)
Reclassification out of Accumulated Other Comprehensive Income \| Pension Plans
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Amortization of net actuarial gain (loss)	400
Reclassification out of Accumulated Other Comprehensive Income \| Postretirement Benefit
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Amortization of net actuarial gain (loss)	$ 300

EMPLOYEE BENEFIT PLANS (Assumptions) (Details)	12 Months Ended
EMPLOYEE BENEFIT PLANS (Assumptions) (Details)	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Net periodic pension cost
Expected long-term rate of return on assets	6.00%
Pension Plans
Benefit obligation
Discount rate	2.50%	3.25%
Net periodic pension cost
Discount rate	3.25%	4.00%	3.50%
Expected long-term rate of return on assets	6.00%	5.50%	6.25%
Postretirement Benefit
Benefit obligation
Discount rate	2.00%	3.00%
Net periodic pension cost
Discount rate	3.00%	4.00%	3.25%

EMPLOYEE BENEFIT PLANS (Expected Benefit Payments) (Details) $ in Thousands	12 Months Ended
	Jan. 02, 2021 USD ($)
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Contribution	$ 300
Pension Plans
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
2021	2,780
2022	2,860
2023	2,970
2024	3,160
2025	3,370
2026-2030	18,710
Postretirement Benefit
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
2021	300
2024	200
2026-2030	$ 900

EMPLOYEE BENEFIT PLANS (Plan Assets) (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Defined Benefit Plan Disclosure [Line Items]
Contribution	$ 300
Pension Plans
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	65,417	$ 61,961	$ 55,564
Pension Plans \| Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	65,173	61,689
Pension Plans \| Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	244	272
Pension Plans \| Cash and Cash Equivalents [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	644	606
Pension Plans \| Cash and Cash Equivalents [Member] \| Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	644	606
Pension Plans \| Cash and Cash Equivalents [Member] \| Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pension Plans \| U.S. Large-Cap blend [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	9,006	8,673
Pension Plans \| U.S. Large-Cap blend [Member] \| Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	9,006	8,673
Pension Plans \| U.S. Large-Cap blend [Member] \| Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pension Plans \| U.S. Large-Cap growth [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	4,105	3,905
Pension Plans \| U.S. Large-Cap growth [Member] \| Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	4,105	3,905
Pension Plans \| U.S. Large-Cap growth [Member] \| Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pension Plans \| U.S. Mid-Cap growth [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	3,913	3,751
Pension Plans \| U.S. Mid-Cap growth [Member] \| Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	3,913	3,751
Pension Plans \| U.S. Mid-Cap growth [Member] \| Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pension Plans \| U.S. Small-Cap blend [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	2,608	2,511
Pension Plans \| U.S. Small-Cap blend [Member] \| Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	2,608	2,511
Pension Plans \| U.S. Small-Cap blend [Member] \| Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pension Plans \| International blend [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	9,882	9,408
Pension Plans \| International blend [Member] \| Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	9,882	9,408
Pension Plans \| International blend [Member] \| Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pension Plans \| Corporate Bond Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	31,995	30,051
Pension Plans \| Corporate Bond Securities [Member] \| Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	31,751	29,779
Pension Plans \| Corporate Bond Securities [Member] \| Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	244	272
Pension Plans \| Real Estate [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	3,264	3,056
Pension Plans \| Real Estate [Member] \| Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	3,264	3,056
Pension Plans \| Real Estate [Member] \| Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	$ 0	$ 0

EMPLOYEE BENEFIT PLANS (Defined Contribution Plans) (Details) - Defined Contribution Plan - USD ($) $ in Millions	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
United States
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]
Minimum age participation for the defined contribution plan (in years)	21 years
Minimum service participation for the defined contribution plan (in months)	1 month
Minimum hours service participation for the defined contribution plan (in hours)	1000 hours
Defined contribution plan expense for the fiscal year	$ 7.7	$ 8.0	$ 8.0
Canada
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]
Defined contribution plan expense for the fiscal year	$ 0.2	$ 0.1	$ 0.1

INCOME TAXES (Narrative) (Details) $ in Millions	Jan. 02, 2021 USD ($)
Income Tax Disclosure [Abstract]
Unrecognized deferred tax liability related to undistributed earnings	$ 3
Undistributed Earnings of Foreign Subsidiaries	$ 70

INCOME TAXES (Provision for Income Taxes) (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Income Tax Disclosure [Abstract]
Undistributed Earnings of Foreign Subsidiaries	$ 70,000
Current tax provision:
Federal	31,085	$ 50,162	$ 48,129
State	6,331	10,548	9,437
Foreign	11,105	16,740	17,359
Total current provision	48,521	77,450	74,925
Deferred tax provision (benefit):
Federal	(18,449)	(10,775)	(760)
State	(3,741)	(1,882)	140
Foreign	(1,064)	(643)	(398)
Total deferred provision (benefit)	(23,254)	(13,300)	(1,018)
Total provision	$ 25,267	$ 64,150	$ 73,907

INCOME TAXES (Income Before Income Taxes) (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Income Tax Disclosure [Abstract]
Domestic	$ 73,525	$ 225,488	$ 260,722
Foreign	61,459	102,464	95,253
Total	$ 134,984	$ 327,952	$ 355,975

INCOME TAXES (Effective Rate Reconciliation) (Details)	12 Months Ended
INCOME TAXES (Effective Rate Reconciliation) (Details)	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Income tax rate reconciliation [Abstract]
Statutory federal income tax rate	21.00%	21.00%	21.00%
State income taxes, net of federal income tax benefit	2.70%	2.50%	2.80%
Impact of foreign operations	(4.80%)	(2.40%)	(1.50%)
Settlement of uncertain tax positions	(1.30%)	(0.70%)	(0.40%)
Benefit from stock-based compensation	(1.10%)	(0.80%)	(1.10%)
Goodwill impairments and other	2.20%	0.00%	0.00%
Total	18.70%	19.60%	20.80%

INCOME TAXES (Deferred Taxes) (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Income Tax Disclosure [Abstract]
Statutory federal income tax rate	21.00%	21.00%	21.00%
Deferred tax assets:
Accounts receivable allowance	$ 4,072	$ 3,437
Inventory	11,775	7,963
Accrued liabilities	13,807	10,219
Equity-based compensation	5,039	5,222
Deferred employee benefits	7,928	7,220
Deferred rent	130,776	178,356
Other	4,961	3,699
Total deferred tax assets	178,358	216,116
Deferred tax liabilities:
Depreciation	(38,777)	(52,664)
Deferred Tax Liabilities, Leasing Arrangements	(107,269)	(149,085)
Tradename and licensing agreements	(76,409)	(82,592)
Other	(5,593)	(4,084)
Deferred Tax Liabilities, Net, Total	228,048	288,425
Deferred Tax Assets, Net, Total	49,690	72,309
Deferred Tax Assets, Net of Valuation Allowance	3,080	2,061
Deferred Tax Liabilities, Gross	$ (52,770)	$ (74,370)

INCOME TAXES (Uncertain Tax Provisions) (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Unrecognized income tax benefits [Roll Forward]
Beginning Balance	$ 13,923	$ 13,917	$ 12,193
Additions based on fiscal year tax positions	760	2,197	3,350
Reductions for prior year tax positions	(104)		(241)
Reductions for lapse of statute of limitations	(2,056)	(2,191)	(1,867)
Ending Balance	12,523	13,923	$ 13,917
Impact of recognized tax benefit on effective tax rate, if recognized	10,900
Tax reserve for which statute of limitations is expected to expire	3,300
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense	400	500
Interest accrued for uncertain tax positions	$ 2,700	$ 2,300

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Weighted-average number of common and common equivalent shares outstanding:
Basic number of common shares outstanding (in shares)	43,242,967	44,402,438	46,160,935
Dilutive effect of equity awards	164,754	305,514	487,485
Diluted number of common and common equivalent shares outstanding (in shares)	43,407,721	44,707,952	46,648,420
Basic net income per common share:
Net (loss) income	$ 109,717	$ 263,802	$ 282,068
Income allocated to participating securities	1,118	2,430	2,148
Net income available to common shareholders	$ 108,599	$ 261,372	$ 279,920
Basic net (loss) income per common share	$ 2.51	$ 5.89	$ 6.06
Diluted net income per common share:
Net (loss) income	$ 109,717	$ 263,802	$ 282,068
Income allocated to participating securities	(1,115)	(2,419)	(2,132)
Net income available to common shareholders	$ 108,602	$ 261,383	$ 279,936
Diluted net (loss) income per common share	$ 2.50	$ 5.85	$ 6.00
Anti-dilutive shares excluded from dilutive earnings per share calculations (1)	564,131	351,777	289,839

SEGMENT INFORMATION (Reportable Segments) (Details) - USD ($)	3 Months Ended			12 Months Ended
	Jan. 02, 2021	Mar. 28, 2020	Sep. 28, 2019	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Segment Reporting Information [Line Items]
Net sales				$ 3,024,334,000	$ 3,519,286,000	$ 3,462,269,000
Percentage of total net sales				100.00%	100.00%	100.00%
Operating income (loss)				$ 189,869,000	$ 371,872,000	$ 391,433,000
Operating income as percentage of segment net sales				6.30%	10.60%	11.30%
Corporate expenses				$ (97,169,000)	$ (103,210,000)	$ (96,798,000)
Restructuring Charges				16,636,000
Goodwill impairment	$ 0			17,742,000	0	0
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)		$ 26,500,000		26,500,000	30,800,000	0
Impairment of Operating lease and Other long-Lived Asset				9,000,000.0
Accounts Receivable, Credit Loss Expense (Reversal)				6,072,000	(220,000)	15,801,000
Retail Segment [Member]
Segment Reporting Information [Line Items]
Net sales				1,671,644,000	1,884,150,000	1,851,193,000
Goodwill impairment				0
Wholesale Segment [Member]
Segment Reporting Information [Line Items]
Net sales				996,088,000	1,205,646,000	1,180,687,000
Goodwill impairment				0
International Segment [Member]
Segment Reporting Information [Line Items]
Goodwill impairment		17,742,000
Operating Segments [Member]
Segment Reporting Information [Line Items]
Restructuring Charges				7,400,000	1,600,000
Operating Segments [Member] \| Retail Segment [Member]
Segment Reporting Information [Line Items]
Net sales				$ 1,671,644,000	$ 1,884,150,000	$ 1,851,193,000
Percentage of total net sales				55.30%	53.50%	53.50%
Operating income (loss)				$ 146,806,000	$ 225,874,000	$ 224,784,000
Operating income as percentage of segment net sales				8.80%	12.00%	12.10%
Restructuring Charges				$ 5,000,000.0
Goodwill impairment				0
Other Cost and Expense, Operating				9,600,000
Impairment of Operating lease and Other long-Lived Asset				7,400,000
Operating Costs and Expenses				36,100,000	$ 500,000	$ 400,000
Accounts Receivable, Allowance for Credit Loss, Recovery					0	0
Business Combination, Acquisition Related Costs					0	0
Benefit Related to Sale of Inventory Previously Reserved					0	0
Other Restructuring Costs					(700,000)	0
Accounts Receivable, Credit Loss Expense (Reversal)						0
Insurance Recoveries					0	(400,000)
Operating Segments [Member] \| Wholesale Segment [Member]
Segment Reporting Information [Line Items]
Net sales				$ 996,088,000	$ 1,205,646,000	$ 1,180,687,000
Percentage of total net sales				32.90%	34.30%	34.10%
Operating income (loss)				$ 141,456,000	$ 212,558,000	$ 224,194,000
Operating income as percentage of segment net sales				14.20%	17.60%	19.00%
Restructuring Charges				$ 2,000,000.0
Goodwill impairment				0
Other Cost and Expense, Operating				9,600,000
Impairment of Operating lease and Other long-Lived Asset				0
Operating Costs and Expenses				20,000,000.0	$ 18,500,000	$ 10,900,000
Accounts Receivable, Allowance for Credit Loss, Recovery						12,800,000
Business Combination, Acquisition Related Costs					0	0
Benefit Related to Sale of Inventory Previously Reserved					0	0
Other Restructuring Costs					0	0
Accounts Receivable, Credit Loss Expense (Reversal)					(600,000)	(1,900,000)
Insurance Recoveries					0	0
Operating Segments [Member] \| International Segment [Member]
Segment Reporting Information [Line Items]
Net sales				$ 356,602,000	$ 429,490,000	$ 430,389,000
Percentage of total net sales				11.80%	12.20%	12.40%
Operating income (loss)				$ (1,224,000)	$ 36,650,000	$ 39,253,000
Operating income as percentage of segment net sales				(0.30%)	8.50%	9.10%
Restructuring Charges				$ 2,200,000
Goodwill impairment				17,700,000
Other Cost and Expense, Operating				2,200,000
Impairment of Operating lease and Other long-Lived Asset				300,000
Operating Costs and Expenses				26,400,000	$ 8,400,000	$ 5,300,000
Accounts Receivable, Allowance for Credit Loss, Recovery					0
Business Combination, Acquisition Related Costs					0	5,300,000
Benefit Related to Sale of Inventory Previously Reserved					(2,100,000)	0
Other Restructuring Costs					0	0
Accounts Receivable, Credit Loss Expense (Reversal)					0	0
Insurance Recoveries					0	0
Skip Hop Trade Name [Member]
Segment Reporting Information [Line Items]
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)		11,000,000.0	$ 30,800,000
Skip Hop Trade Name [Member] \| Retail Segment [Member]
Segment Reporting Information [Line Items]
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)		500,000	1,200,000
Skip Hop Trade Name [Member] \| Wholesale Segment [Member]
Segment Reporting Information [Line Items]
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)		6,800,000	19,100,000		19,100,000
Skip Hop Trade Name [Member] \| International Segment [Member]
Segment Reporting Information [Line Items]
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)		3,700,000	$ 10,500,000
Skip Hop Trade Name [Member] \| Operating Segments [Member] \| Retail Segment [Member]
Segment Reporting Information [Line Items]
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)				500,000	1,200,000	0
Skip Hop Trade Name [Member] \| Operating Segments [Member] \| Wholesale Segment [Member]
Segment Reporting Information [Line Items]
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)				6,800,000		0
Skip Hop Trade Name [Member] \| Operating Segments [Member] \| International Segment [Member]
Segment Reporting Information [Line Items]
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)				3,700,000	$ 10,500,000	$ 0
Oshkosh Tradename [Member]
Segment Reporting Information [Line Items]
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)		15,500,000
Oshkosh Tradename [Member] \| Retail Segment [Member]
Segment Reporting Information [Line Items]
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)		13,600,000
Oshkosh Tradename [Member] \| Wholesale Segment [Member]
Segment Reporting Information [Line Items]
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)		1,600,000
Oshkosh Tradename [Member] \| International Segment [Member]
Segment Reporting Information [Line Items]
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)		$ 300,000
Oshkosh Tradename [Member] \| Operating Segments [Member] \| Retail Segment [Member]
Segment Reporting Information [Line Items]
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)				13,600,000
Oshkosh Tradename [Member] \| Operating Segments [Member] \| Wholesale Segment [Member]
Segment Reporting Information [Line Items]
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)				1,600,000
Oshkosh Tradename [Member] \| Operating Segments [Member] \| International Segment [Member]
Segment Reporting Information [Line Items]
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)				$ 300,000

SEGMENT INFORMATION (Net Inventory) (Details) - USD ($) $ in Thousands	Jan. 02, 2021	Dec. 28, 2019
Segment Reporting Information [Line Items]
Inventory, Net	$ 599,262	$ 593,987
Operating Segments [Member] \| Wholesale [Member]
Segment Reporting Information [Line Items]
Inventory, Net	464,229	427,387
Operating Segments [Member] \| Retail Segment [Member]
Segment Reporting Information [Line Items]
Inventory, Net	47,889	87,721
Operating Segments [Member] \| International [Member]
Segment Reporting Information [Line Items]
Inventory, Net	$ 87,144	$ 78,879

SEGMENT INFORMATION (Net Sales) (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Revenue from External Customer [Line Items]
Net sales	$ 3,024,334	$ 3,519,286	$ 3,462,269
Baby [Member]
Revenue from External Customer [Line Items]
Net sales	1,026,910	1,228,905	1,239,009
Playclothes [Member]
Revenue from External Customer [Line Items]
Net sales	1,052,178	1,362,847	1,303,610
Sleepwear [Member]
Revenue from External Customer [Line Items]
Net sales	441,358	428,541	431,961
Other Products [Member]
Revenue from External Customer [Line Items]
Net sales	$ 503,888	$ 498,993	$ 487,689

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599

Reference 2: 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 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
-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 606
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130543-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 9: 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 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130545-203045

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 924
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-URI http://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

SEGMENT INFORMATION (Revenue) (Details) - Canada	12 Months Ended
SEGMENT INFORMATION (Revenue) (Details) - Canada	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Revenues from External Customers and Long-Lived Assets [Line Items]
International Long-Lived Assets, Percent of Total Long-Lived Assets	84.00%	84.30%
Percentage of total net sales	70.30%	65.60%	64.20%

SEGMENT INFORMATION (Long-Lived Assets) (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	$ 262,345	$ 320,168
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	232,655	283,371
International [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	$ 29,690	$ 36,797
Canada
Revenues from External Customers and Long-Lived Assets [Line Items]
International Long-Lived Assets, Percent of Total Long-Lived Assets	84.00%	84.30%

FAIR VALUE MEASUREMENTS Foreign currency contracts (Details) - USD ($)	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Gain (Loss) on Investments	$ 2,000,000.0	$ 4,000,000.0
Investment Owned, Foreign Currency Contract, Current Value	0	0
Long-term debt, BS		594,672,000
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities	$ 20,200,000	$ 19,700,000

- 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

FAIR VALUE MEASUREMENTS Goodwill and Intangible Assets (Details) - USD ($)	3 Months Ended			12 Months Ended
	Jan. 02, 2021	Mar. 28, 2020	Sep. 28, 2019	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)		$ 26,500,000		$ 26,500,000	$ 30,800,000	$ 0
Goodwill impairment	$ 0			(17,742,000)	0	$ 0
Goodwill	211,776,000			211,776,000	229,026,000
Impairment of Operating lease and Other long-Lived Asset				9,000,000.0
International Segment [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Goodwill impairment		(17,742,000)
Goodwill	53,388,000			53,388,000	70,638,000
Retail Segment [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Goodwill impairment				0
Goodwill	83,934,000			83,934,000	83,934,000
Wholesale Segment [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Goodwill impairment				0
Goodwill	74,454,000			74,454,000	74,454,000
Other International Reporting Unit Member [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Goodwill impairment		(17,700,000)
Goodwill	11,800,000			11,800,000
Skip Hop Trade Name [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)		11,000,000.0	$ 30,800,000
Indefinite intangible assets	15,000,000.0			15,000,000.0	26,000,000
Skip Hop Trade Name [Member] \| International Segment [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)		3,700,000	10,500,000
Skip Hop Trade Name [Member] \| Retail Segment [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)		500,000	1,200,000
Skip Hop Trade Name [Member] \| Wholesale Segment [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)		6,800,000	$ 19,100,000		19,100,000
Oshkosh Tradename [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)		15,500,000
Indefinite intangible assets	$ 70,000,000.0			$ 70,000,000.0	$ 85,500,000
Oshkosh Tradename [Member] \| International Segment [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)		300,000
Oshkosh Tradename [Member] \| Retail Segment [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)		13,600,000
Oshkosh Tradename [Member] \| Wholesale Segment [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)		$ 1,600,000

FAIR VALUE MEASUREMENTS Borrowings (Details) - USD ($)	Jan. 02, 2021	Dec. 28, 2019
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, BS		$ 594,672,000
Secured revolving credit facility
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Secured revolving credit facility	$ 0	$ 100,000,000
Total Senior Notes Member
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	1,060,000,000.00
Long-term debt, BS	$ 1,000,000,000.00

- 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

+ References + Details

OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands	Jan. 02, 2021	Dec. 28, 2019
Other Liabilities Disclosure [Abstract]
Accrued Employee Benefits, Current	$ 22,876	$ 16,556
Income taxes payable	21,164	23,269
Unredeemed gift cards	18,300	17,563
Accrued interest	12,092	8,579
Accrued taxes	10,900	15,036
Accrued salaries and wages	10,650	4,695
Other Accrued Liabilities	39,258	45,933
Other Liabilities, Current, Total	$ 135,240	$ 131,631

RESTRUCTURING CHARGES (Details) $ in Thousands	12 Months Ended
RESTRUCTURING CHARGES (Details) $ in Thousands	Jan. 02, 2021 USD ($)
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	$ 16,636
Selling, General and Administrative Expenses \| Severance and other termination benefits
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	12,029
Selling, General and Administrative Expenses \| Lease exit costs
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	2,727
Selling, General and Administrative Expenses \| Relocation and recruiting
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	1,800
Selling, General and Administrative Expenses \| Other closure costs
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	$ 80

RESTRUCTURING (Details) $ in Thousands	12 Months Ended
RESTRUCTURING (Details) $ in Thousands	Jan. 02, 2021 USD ($) store
Restructuring Cost and Reserve [Line Items]
Planned Store Closures \| store	100
Severance and other termination benefits
Restructuring Cost and Reserve [Line Items]
Payments for Restructuring	$ 4,300
Restructuring Reserve	7,700
Minimum \| Severance and other termination benefits
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Expected Cost	2,000
Maximum \| Severance and other termination benefits
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Expected Cost	$ 3,000

COMMITMENTS AND CONTINGENCIES (Inventory Purchase Commitments) (Details) - USD ($) $ in Thousands	Jan. 02, 2021	Dec. 28, 2019
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Inventory Valuation Reserves	$ 14,206	$ 9,283
Purchase Commitment [Member]
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Inventory Valuation Reserves	$ 13,300

Label	Element	Value
Retained Earnings [Member]
Tax Cuts and Jobs Act, Reclassification from AOCI to Retained Earnings, Tax Effect	us-gaap_TaxCutsAndJobsActOf2017ReclassificationFromAociToRetainedEarningsTaxEffect	$ 1,500,000