Document and Entity Information (USD $)	9 Months Ended
Document and Entity Information (USD $)	Oct. 02, 2010	Oct. 25, 2010	Jul. 02, 2009
Document and Entity Information [Abstract]
Entity Registrant Name	Hanesbrands Inc.
Entity Central Index Key	0001359841
Document Type	10-Q
Document Period End Date	Oct. 02, 2010
Amendment Flag	false
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--01-02
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 1,387,889,493
Entity Common Stock, Shares Outstanding		95,778,117

Condensed Consolidated Statements of Income (Unaudited) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Oct. 02, 2010	Oct. 03, 2009	Oct. 02, 2010	Oct. 03, 2009
Condensed Consolidated Statements of Income [Abstract]
Net sales	$ 1,173,362	$ 1,058,673	$ 3,177,054	$ 2,902,536
Cost of sales	809,487	701,993	2,110,943	1,960,589
Gross profit	363,875	356,680	1,066,111	941,947
Selling, general and administrative expenses	249,815	248,267	743,534	702,204
Restructuring		15,104		46,319
Operating profit	114,060	93,309	322,577	193,424
Other expenses	1,094	2,423	5,128	6,537
Interest expense, net	36,326	42,941	110,394	124,548
Income before income tax expense	76,640	47,945	207,055	62,339
Income tax expense	15,328	6,807	23,818	9,974
Net income	$ 61,312	$ 41,138	$ 183,237	$ 52,365
Earnings per share:
Basic	$ 0.64	$ 0.43	$ 1.9	$ 0.55
Diluted	$ 0.63	$ 0.43	$ 1.87	$ 0.55
Weighted average shares outstanding:
Basic	96,496	95,247	96,417	94,880
Diluted	97,752	96,422	97,790	95,469

Condensed Consolidated Balance Sheets (Unaudited) (USD $) In Thousands, unless otherwise specified	Oct. 02, 2010	Jan. 02, 2010
Assets
Cash and cash equivalents	$ 75,496	$ 38,943
Trade accounts receivable less allowances of $20,316 at October 2, 2010 and $25,776 at January 2, 2010	531,360	450,541
Inventories	1,377,286	1,049,204
Deferred tax assets and other current assets	270,870	283,869
Total current assets	2,255,012	1,822,557
Property, net	596,458	602,826
Trademarks and other identifiable intangibles, net	129,079	136,214
Goodwill	322,002	322,002
Deferred tax assets and other noncurrent assets	452,742	442,965
Total assets	3,755,293	3,326,564
Liabilities and Stockholders' Equity
Accounts payable	461,879	351,971
Accrued liabilities	303,130	295,635
Notes payable	42,651	66,681
Current portion of debt	150,000	164,688
Total current liabilities	957,660	878,975
Long-term debt	1,871,672	1,727,547
Other noncurrent liabilities	387,434	385,323
Total liabilities	3,216,766	2,991,845
Stockholders' equity:
Preferred stock (50,000,000 authorized shares; $.01 par value) Issued and outstanding - None	0	0
Common stock (500,000,000 authorized shares; $.01 par value) Issued and outstanding - 95,776,484 at October 2, 2010 and 95,396,967 at January 2, 2010	958	954
Additional paid-in capital	298,930	287,955
Retained earnings	452,043	268,805
Accumulated other comprehensive loss	(213,404)	(222,995)
Total stockholders' equity	538,527	334,719
Total liabilities and stockholders' equity	$ 3,755,293	$ 3,326,564

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Oct. 02, 2010	Jan. 02, 2010
Assets
Trade accounts receivable less allowances	$ 20,316	$ 25,776
Stockholders' equity:
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	50,000,000	50,000,000
Preferred stock, shares Issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares Issued	95,776,484	95,396,967
Common stock, shares outstanding	95,776,484	95,396,967

Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Oct. 02, 2010	Oct. 03, 2009
Operating activities:
Net income	$ 183,237	$ 52,365
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation	54,232	57,476
Amortization of intangibles	9,046	9,293
Restructuring		6,978
Write-off on early extinguishment of debt	2,340	2,423
Charges incurred for amendments of credit facilities		4,114
Amortization of debt issuance costs	9,724	7,951
Amortization of loss on interest rate hedge	13,732
Stock compensation expense	8,320	27,637
Deferred taxes and other	(10,224)	(8,422)
Changes in assets and liabilities:
Accounts receivable	(77,782)	(128,636)
Inventories	(333,132)	159,432
Other assets	9,112	21,380
Accounts payable	109,964	(31,923)
Accrued liabilities and other	(15,643)	30,739
Net cash provided by (used in) operating activities	(37,074)	210,807
Investing activities:
Purchases of property, plant and equipment	(78,570)	(99,709)
Proceeds from sales of assets	45,469	15,814
Other	(519)	10
Net cash used in investing activities	(33,620)	(83,885)
Financing activities:
Borrowings on notes payable	991,061	1,169,301
Repayments on notes payable	(1,015,338)	(1,168,799)
Payments to amend credit facilities	(1,688)	(22,165)
Borrowings on revolving loan facility	1,597,500	1,353,525
Repayments on revolving loan facility	(1,459,000)	(1,353,525)
Repayment of debt under 2009 Senior Secured Credit Facility	(59,063)
Repayment of debt under 2006 Senior Secured Credit Facility		(140,250)
Borrowings on Accounts Receivable Securitization Facility	191,424	176,616
Repayments on Accounts Receivable Securitization Facility	(141,424)	(170,190)
Proceeds from stock options exercised	3,437	376
Other	308	(824)
Net cash provided by (used in) financing activities	107,217	(155,935)
Effect of changes in foreign exchange rates on cash	30	288
Increase (decrease) in cash and cash equivalents	36,553	(28,725)
Cash and cash equivalents at beginning of year	38,943	67,342
Cash and cash equivalents at end of period	$ 75,496	$ 38,617

Basis of Presentation

9 Months Ended

Oct. 02, 2010

Basis of Presentation [Abstract]

Basis of Presentation


(1)	Basis of Presentation

These statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) and, in accordance with those rules and regulations, do not include all information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Management believes that the disclosures made are adequate for a fair statement of the results of operations, financial condition and cash flows of Hanesbrands Inc., a Maryland corporation, and its consolidated subsidiaries (the “Company” or “Hanesbrands”). In the opinion of management, the condensed consolidated interim financial statements reflect all adjustments, consisting only of normal recurring adjustments, necessary to present fairly the results of operations, financial condition and cash flows for the interim periods presented herein. The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make use of estimates and assumptions that affect the reported amounts and disclosures. Actual results may vary from these estimates.

These condensed consolidated interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s most recent Annual Report on Form 10-K. The results of operations for any interim period are not necessarily indicative of the results of operations to be expected for the full year.

To reflect a change previously made in the classification of freight expenses payable, a revision to the nine months ended October 3, 2009 Condensed Consolidated Statement of Cash Flows was made to reclassify changes in cash related to these payables from Accrued Liabilities and Other to Accounts Payable. This reclassification had no impact on the Company’s previously reported total net cash flows from operating, investing or financing activities.

- Definition

Description containing the entire organization, consolidation and basis of presentation of financial statements disclosure. May be provided in more than one note to the financial statements, as long as users are provided with an understanding of (1) the significant judgments and assumptions made by an enterprise in determining whether it must consolidate a VIE and/or disclose information about its involvement with a VIE, (2) the nature of restrictions on a consolidated VIE's assets reported by an enterprise in its statement of financial position, including the carrying amounts of such assets, (3) the nature of, and changes in, the risks associated with an enterprise's involvement with the VIE, and (4) how an enterprise's involvement with the VIE affects the enterprise's financial position, financial performance, and cash flows. Describes procedure if disclosures are provided in more than one note to the financial statements.

+ References+ Details

Recent Accounting Pronouncements

9 Months Ended

Oct. 02, 2010

Recent Accounting Pronouncements [Abstract]

Recent Accounting Pronouncements


(2)	Recent Accounting Pronouncements

Accounting for Transfers of Financial Assets

In June 2009, the Financial Accounting Standards Board (“FASB”) issued new accounting rules for transfers of financial assets. The new rules require greater transparency and additional disclosures for transfers of financial assets and the entity’s continuing involvement with them and changes the requirements for derecognizing financial assets. The new accounting rules are effective for financial asset transfers occurring after the beginning of the Company’s first fiscal year that begins after November 15, 2009. The adoption of these new rules did not have a material impact on the financial condition, results of operations or cash flows of the Company.

Consolidation — Variable Interest Entities

In June 2009, the FASB issued new accounting rules related to the accounting and disclosure requirements for the consolidation of variable interest entities. The new accounting rules are effective for the Company’s first fiscal year that begins after November 15, 2009. The adoption of these new rules did not have a material impact on the financial condition, results of operations or cash flows of the Company.

Fair Value Disclosures

In January 2010, the FASB issued new accounting rules related to the disclosure requirements for fair value measurements. The new accounting rules require new disclosures regarding significant transfers between Levels 1 and 2 of the fair value hierarchy and the activity within Level 3 of the fair value hierarchy. The new accounting rules also clarify existing disclosures regarding the level of disaggregation of assets or liabilities and the valuation techniques and inputs used to measure fair value. The new accounting rules are effective for the Company’s first interim fiscal period beginning after December 15, 2009, except for the disclosures about purchases, sales, issuances and settlements in the rollforward of activity in Level 3 fair value measurements. Those disclosures are effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. The adoption of the disclosures effective for the Company’s first interim fiscal period beginning after December 15, 2009 did not have a material impact on the Company’s financial condition, results of operations or cash flows but resulted in certain additional disclosures reflected in Note 8.

Earnings Per Share

9 Months Ended

Oct. 02, 2010

Earnings Per Share [Abstract]

Earnings Per Share


(3)	Earnings Per Share

Basic earnings per share (“EPS”) was computed by dividing net income by the number of weighted average shares of common stock outstanding during the quarters and nine months ended October 2, 2010 and October 3, 2009. Diluted EPS was calculated to give effect to all potentially dilutive shares of common stock using the treasury stock method. The reconciliation of basic to diluted weighted average shares for the quarters and nine months ended October 2, 2010 and October 3, 2009 is as follows:


	Quarter Ended				Nine Months Ended
	October 2,		October 3,		October 2,		October 3,
	2010		2009		2010		2009

Basic weighted average shares		96,496		95,247		96,417		94,880
Effect of potentially dilutive securities:
Stock options		664		205		781		—
Restricted stock units		589		970		591		589
Employee stock purchase plan and other		3		—		1		—

Diluted weighted average shares		97,752		96,422		97,790		95,469

For the quarters ended October 2, 2010 and October 3, 2009, options to purchase 606 and 4,612 shares of common stock, respectively, were excluded from the diluted earnings per share calculation because their effect would be anti-dilutive. For the nine months ended October 2, 2010 and October 3, 2009, 0 and 43 restricted stock units, respectively, and options to purchase 606 and 5,871 shares of common stock, respectively, were excluded from the diluted earnings per share calculation because their effect would be anti-dilutive.

Inventories

9 Months Ended

Oct. 02, 2010

Inventories [Abstract]

Inventories


(4)	Inventories

Inventories consisted of the following:


	October 2,		January 2,
	2010		2010

Raw materials	$	130,573	$	106,138
Work in process		126,674		100,686
Finished goods		1,120,039		842,380

	$	1,377,286	$	1,049,204

Trade Accounts Receivable

9 Months Ended

Oct. 02, 2010

Trade Accounts Receivable [Abstract]

Trade Accounts Receivable


(5)	Trade Accounts Receivable

Allowances for Trade Accounts Receivable

The changes in the Company’s allowance for doubtful accounts and allowance for chargebacks and other deductions for the quarter and nine months ended October 2, 2010 are as follows:


				Allowance
	Allowance			for
	for			Chargebacks
	Doubtful			and Other
	Accounts			Deductions			Total

Balance at January 2, 2010	$	15,502		$	10,274		$	25,776
Charged to expenses		(107	)		6,026			5,919
Deductions and write-offs		(53	)		(893	)		(946	)

Balance at April 3, 2010		15,342			15,407			30,749

Charged to expenses		(1,617	)		(1,852	)		(3,469	)
Deductions and write-offs		(79	)		(1,787	)		(1,866	)

Balance at July 3, 2010		13,646			11,768			25,414

Charged to expenses		914			(632	)		282
Deductions and write-offs		(3,433	)		(1,947	)		(5,380	)

Balance at October 2, 2010	$	11,127		$	9,189		$	20,316

Charges to the allowance for doubtful accounts are reflected in the “Selling, general and administrative expenses” line and charges to the allowance for customer chargebacks and other customer deductions are primarily reflected as a reduction in the “Net sales” line of the Condensed Consolidated Statements of Income. Deductions and write-offs, which do not increase or decrease income, represent write-offs of previously reserved accounts receivable and allowed customer chargebacks and deductions against gross accounts receivable.

Sales of Accounts Receivable

In March 2010, the Company entered into an agreement to sell selected trade accounts receivable to a financial institution. After the sale, the Company does not retain any interests in the receivables and the financial institution services and collects these accounts receivable directly from the customer. Net proceeds of this accounts receivable sale program are recognized in the Condensed Consolidated Statement of Cash Flows as part of operating cash flows. The funding fees charged for this program are recorded in the “Other expenses” line in the Condensed Consolidated Statement of Income.

During the quarter and nine months ended October 2, 2010, the Company recognized funding fees of $1,094 and $2,557, respectively, for sales of accounts receivable to financial institutions in the “Other expenses” line in the Condensed Consolidated Statements of Income.

Debt

9 Months Ended

Oct. 02, 2010

Debt [Abstract]

Debt


(6)	Debt

The Company had the following debt at October 2, 2010 and January 2, 2010:


	Interest
	Rate as of			Principal Amount
	October 2,			October 2,		January 2,
	2010			2010		2010		Maturity Date

2009 Senior Secured Credit Facility:
Term Loan Facility		5.25	%	$	690,937	$	750,000	December 2015
Revolving Loan Facility		4.76	%		190,000		51,500	December 2013
8% Senior Notes		8.00	%		500,000		500,000	December 2016
Floating Rate Senior Notes		4.12	%		490,735		490,735	December 2014
Accounts Receivable Securitization Facility		2.82	%		150,000		100,000	December 2010

					2,021,672		1,892,235
Less current maturities					150,000		164,688

				$	1,871,672	$	1,727,547

As of October 2, 2010, the Company had $190,000 outstanding under the $600,000 revolving loan facility (the “Revolving Loan Facility”) under the senior secured credit facility that the Company entered into in 2006 (the “2006 Senior Secured Credit Facility”) and amended and restated in December 2009 (as amended and restated, the “2009 Senior Secured Credit Facility”), $17,046 of standby and trade letters of credit issued and outstanding under this facility and $392,954 of borrowing availability.

As previously disclosed in the Company’s Annual Report on Form 10-K for the year ended January 2, 2010, the 2009 Senior Secured Credit Facility permits the Company, at its option, to add one or more term loan facilities or increase the commitments under the Revolving Loan Facility in an aggregate amount of up to $300,000 so long as certain conditions are satisfied, including, among others, that no default or event of default is in existence and that the Company is in pro forma compliance with the financial covenants in the 2009 Senior Secured Credit Facility. In order to support its working capital needs and fund an acquisition, on September 1, 2010, as permitted by the 2009 Senior Secured Credit Facility, the Company increased the commitments under the Revolving Loan Facility by an aggregate amount of $200,000, increasing the borrowing availability under the Revolving Loan Facility from $400,000 to $600,000. During the quarter and nine months ended October 2, 2010, the Company incurred $1,688 in capitalized debt issuance costs in connection with increasing the borrowing availability under the Revolving Loan Facility. Debt issuance costs are amortized to interest expense over the life of the debt instrument.

On January 29, 2010, in recognition of the lower trade accounts receivable balance resulting from the sale by the Company of certain trade accounts receivable to a financial institution outside the accounts receivable securitization facility that the Company entered into in November 2007 (the “Accounts Receivable Securitization Facility”), HBI Receivables LLC, the Company’s wholly-owned bankruptcy-remote subsidiary that is a party to such facility, gave notice to the agent and the managing agents under the Accounts Receivable Securitization Facility that, as permitted by the terms of such facility, effective February 11, 2010, the amount of funding available under the Accounts Receivable Securitization Facility was being reduced from $250,000 to $150,000. During the quarter and nine months ended October 2, 2010, the Company recognized $0 and $686, respectively, of a write-off on early extinguishment of debt related to unamortized debt issuance costs on the Accounts Receivable Securitization Facility as a result of the reduction in borrowing capacity.

During the quarter and nine months ended October 2, 2010, the Company recognized $0 and $1,654, respectively, of a write-off on early extinguishment of debt related to unamortized debt issuance costs on the 2009 Senior Secured Credit Facility as a result of the prepayment of $57,188 of principal in April 2010. The Company also recognized $0 and $231 in additional charges related to the amendments of credit facilities in 2009 during the quarter and nine months ended October 2, 2010, respectively. These charges are reflected in the “Other expenses” line of the Condensed Consolidated Statements of Income.

During the quarter and nine months ended October 3, 2009, the Company recognized $2,423 of a write-off on early extinguishment of debt related to unamortized debt issuance costs on the 2006 Senior Secured Credit Facility as a result of the prepayment of $140,250 of principal in September 2009. This loss is reflected in the “Other expenses” line of the Condensed Consolidated Statements of Income.

During the quarter and nine months ended October 3, 2009, the Company recognized charges of $0 and $4,114, respectively, in the “Other expenses” line of the Condensed Consolidated Statements of Income, which represent certain costs related to amendments of the 2006 Senior Secured Credit Facility and the Accounts Receivable Securitization Facility.

As of October 2, 2010, the Company was in compliance with all covenants under its credit facilities.

Financial Instruments and Risk Management

9 Months Ended

Oct. 02, 2010

Financial Instruments and Risk Management [Abstract]

Financial Instruments and Risk Management


(7)	Financial Instruments and Risk Management

The Company uses financial instruments to manage its exposures to movements in interest rates, foreign exchange rates and commodity prices. The use of these financial instruments modifies the Company’s exposure to these risks with the goal of reducing the risk or cost to the Company. The Company does not use derivatives for trading purposes and is not a party to leveraged derivative contracts.

The Company recognizes all derivative instruments as either assets or liabilities at fair value in the Condensed Consolidated Balance Sheets. The fair value is based upon either market quotes for actively traded instruments or independent bids for nonexchange traded instruments. The Company formally documents its hedge relationships, including identifying the hedging instruments and the hedged items, as well as its risk management objectives and strategies for undertaking the hedge transaction. This process includes linking derivatives that are designated as hedges of specific assets, liabilities, firm commitments or forecasted transactions to the hedged risk. On the date the derivative is entered into, the Company designates the derivative as a fair value hedge, cash flow hedge, net investment hedge or a mark to market hedge, and accounts for the derivative in accordance with its designation. The Company also formally assesses, both at inception and at least quarterly thereafter, whether the derivatives are highly effective in offsetting changes in either the fair value or cash flows of the hedged item. If it is determined that a derivative ceases to be a highly effective hedge, or if the anticipated transaction is no longer likely to occur, the Company discontinues hedge accounting, and any deferred gains or losses are recorded in the respective measurement period. The Company currently does not have any fair value or net investment hedge instruments.

The Company may be exposed to credit losses in the event of nonperformance by individual counterparties or the entire group of counterparties to the Company’s derivative contracts. Risk of nonperformance by counterparties is mitigated by dealing with highly rated counterparties and by diversifying across counterparties.

Mark to Market Hedges

A derivative used as a hedging instrument whose change in fair value is recognized to act as an economic hedge against changes in the values of the hedged item is designated a mark to market hedge.

Mark to Market Hedges — Intercompany Foreign Exchange Transactions

The Company uses foreign exchange derivative contracts to reduce the impact of foreign exchange fluctuations on anticipated intercompany purchase and lending transactions denominated in foreign currencies. Foreign exchange derivative contracts are recorded as mark to market hedges when the hedged item is a recorded asset or liability that is revalued in each accounting period. Mark to market hedge derivatives relating to intercompany foreign exchange contracts are reported in the Condensed Consolidated Statements of Cash Flows as cash flow from operating activities. As of October 2, 2010, the U.S. dollar equivalent of commitments to purchase and sell foreign currencies in the Company’s foreign currency mark to market hedge derivative portfolio was is $12,550 and $38,501, respectively, using the exchange rate at the reporting date.

Cash Flow Hedges

A hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability is designated as a cash flow hedge. The effective portion of the change in the fair value of a derivative that is designated as a cash flow hedge is recorded in the “Accumulated other comprehensive loss” line of the Condensed Consolidated Balance Sheets. When the impact of the hedged item is recognized in the income statement, the gain or loss included in “Accumulated other comprehensive loss” is reported on the same line in the Condensed Consolidated Statements of Income as the hedged item.

Cash Flow Hedges — Interest Rate Derivatives

From time to time, the Company uses interest rate cash flow hedges in the form of swaps and caps in order to mitigate the Company’s exposure to variability in cash flows for the future interest payments on a designated portion of floating rate debt. The effective portion of interest rate hedge gains and losses deferred in “Accumulated other comprehensive loss” is reclassified into earnings as the underlying debt interest payments are recognized. Interest rate cash flow hedge derivatives are reported as a component of interest expense and therefore are reported as cash flow from operating activities similar to the manner in which cash interest payments are reported in the Condensed Consolidated Statements of Cash Flows.

The Company is required under the 2009 Senior Secured Credit Facility to hedge a portion of its floating rate debt to reduce interest rate risk caused by floating rate debt issuance. To comply with this requirement, in the quarter ended April 3, 2010, the Company entered into hedging arrangements whereby it capped the LIBOR interest rate component on an aggregate of $490,735 of the floating rate debt under the Company’s $500,000 Floating Rate Senior Notes due 2014 (the “Floating Rate Senior Notes”) at 4.262%. The interest rate cap arrangements, with notional amounts of $240,735 and $250,000, expire in December 2011.

Cash Flow Hedges — Foreign Currency Derivatives

The Company uses forward exchange and option contracts to reduce the effect of fluctuating foreign currencies on short-term foreign currency-denominated transactions, foreign currency-denominated investments, and other known foreign currency exposures. Gains and losses on these contracts are intended to offset losses and gains on the hedged transaction in an effort to reduce the earnings volatility resulting from fluctuating foreign currency exchange rates. The effective portion of foreign exchange hedge gains and losses deferred in “Accumulated other comprehensive loss” is reclassified into earnings as the underlying inventory is sold, using historical inventory turnover rates. The settlement of foreign exchange hedge derivative contracts related to the purchase of inventory or other hedged items are reported in the Condensed Consolidated Statements of Cash Flows as cash flow from operating activities.

Historically, the principal currencies hedged by the Company include the Euro, Mexican peso, Canadian dollar and Japanese yen. Forward exchange contracts mature on the anticipated cash requirement date of the hedged transaction, generally within one year. As of October 2, 2010, the U.S. dollar equivalent of commitments to sell foreign currencies in the Company’s foreign currency cash flow hedge derivative portfolio was $53,752, using the exchange rate at that date.

Cash Flow Hedges — Commodity Derivatives

Cotton is the primary raw material used to manufacture many of the Company’s products and is purchased at market prices. From time to time, the Company uses commodity financial instruments to hedge the price of cotton, for which there is a high correlation between the hedged item and the hedge instrument. Gains and losses on these contracts are intended to offset losses and gains on the hedged transactions in an effort to reduce the earnings volatility resulting from fluctuating commodity prices. The effective portion of commodity hedge gains and losses deferred in “Accumulated other comprehensive loss” is reclassified into earnings as the underlying inventory is sold, using historical inventory turnover rates. The settlement of commodity hedge derivative contracts related to the purchase of inventory is reported in the Condensed Consolidated Statements of Cash Flows as cash flow from operating activities. There were no amounts outstanding under cotton futures or cotton option contracts at October 2, 2010 and January 2, 2010.

Fair Values of Derivative Instruments

The fair values of derivative financial instruments recognized in the Condensed Consolidated Balance Sheets of the Company were as follows:


		Fair Value
		October 2,			January 2,
	Balance Sheet Location	2010			2010

Derivative assets — hedges
Interest rate contracts	Other assets	$	20		$	—
Foreign exchange contracts	Other current assets		—			407

Total derivative assets — hedges			20			407

Derivative assets — non-hedges
Foreign exchange contracts	Other current assets		220			207

Total derivative assets		$	240		$	614

Derivative liabilities — hedges
Foreign exchange contracts	Accrued liabilities		(1,351	)		(107	)

Total derivative liabilities — hedges			(1,351	)		(107	)

Derivative liabilities — non-hedges
Foreign exchange contracts	Accrued liabilities		(1,408	)		(432	)

Total derivative liabilities		$	(2,759	)	$	(539	)

Net derivative asset (liability)		$	(2,519	)	$	75

Net Derivative Gain or Loss

The effect of cash flow hedge derivative instruments on the Condensed Consolidated Statements of Income and Accumulated Other Comprehensive Loss is as follows:


								Amount of
	Amount of							Gain (Loss)
	Gain (Loss)							Reclassified from
	Recognized in						Location of	Accumulated
	Accumulated Other						Gain (Loss)	Other Comprehensive
	Comprehensive Loss						Reclassified from	Loss into Income
	(Effective Portion)						Accumulated Other	(Effective Portion)
	Quarter Ended						Comprehensive	Quarter Ended
	October 2,			October 3,			Loss into Income	October 2,			October 3,
	2010			2009			(Effective Portion)	2010			2009

Interest rate contracts	$	(82	)	$	(541	)	Interest expense, net	$	(4,214	)	$	219
Foreign exchange contracts		(2,387	)		(898	)	Cost of sales		(514	)		(127	)

Total	$	(2,469	)	$	(1,439	)		$	(4,728	)	$	92


								Amount of
	Amount of							Gain (Loss)
	Gain (Loss)							Reclassified from
	Recognized in						Location of	Accumulated
	Accumulated Other						Gain (Loss)	Other Comprehensive
	Comprehensive Loss						Reclassified from	Loss into Income
	(Effective Portion)						Accumulated Other	(Effective Portion)
	Nine Months Ended						Comprehensive	Nine Months Ended
	October 2,			October 3,			Loss into Income	October 2,			October 3,
	2010			2009			(Effective Portion)	2010			2009

Interest rate contracts	$	(499	)	$	17,471		Interest expense, net	$	(13,836	)	$	348
Foreign exchange contracts		(2,096	)		(1,768	)	Cost of sales		(1,138	)		(1,240	)
Commodity contracts		—			—		Cost of sales		—			96

Total	$	(2,595	)	$	15,703			$	(14,974	)	$	(796	)

The Company expects to reclassify into earnings during the next 12 months a net loss from Accumulated Other Comprehensive Loss of approximately $11,287.

The changes in fair value of derivatives excluded from the Company’s effectiveness assessments and the ineffective portion of the changes in the fair value of derivatives used as cash flow hedges are reported in the “Selling, general and administrative expenses” line in the Condensed Consolidated Statements of Income. The Company recognized gains (losses) for the quarter and nine months ended October 2, 2010 related to ineffectiveness of hedging relationships for foreign exchange contracts of $(1) and $6, respectively. The Company recognized gains related to ineffectiveness of hedging relationships for the quarter ended October 3, 2009 of $102, consisting of $75 for interest rate contracts and $27 for foreign exchange contracts. The Company recognized gains related to ineffectiveness of hedging relationships for the nine months ended October 3, 2009 of $246, consisting of $227 for interest rate contracts and $19 for foreign exchange contracts.

The effect of mark to market hedge derivative instruments on the Condensed Consolidated Statements of Income is as follows:


		Amount of Gain (Loss)					Amount of Gain (Loss)
		Recognized in Income					Recognized in Income
	Location of Gain (Loss)	Quarter Ended					Nine Months Ended
	Recognized in Income on	October 2,			October 3,		October 2,			October 3,
	Derivative	2010			2009		2010			2009

Foreign exchange contracts	Selling, general and administrative expenses	$	(1,838	)	$	4,365	$	(1,309	)	$	3,189

Total		$	(1,838	)	$	4,365	$	(1,309	)	$	3,189

Fair Value of Assets and Liabilities

9 Months Ended

Oct. 02, 2010

Fair Value of Assets and Liabilities [Abstract]

Fair Value of Assets and Liabilities


(8)	Fair Value of Assets and Liabilities

Fair value is an exit price, representing the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company utilizes market data or assumptions that market participants would use in pricing the asset or liability. A three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value, is utilized for disclosing the fair value of the Company’s assets and liabilities. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs about which little or no market data exists, therefore requiring an entity to develop its own assumptions.

As of October 2, 2010, the Company held certain financial assets and liabilities that are required to be measured at fair value on a recurring basis. These consisted of the Company’s derivative instruments related to interest rates and foreign exchange rates. The Company’s defined benefit pension plan investments are not required to be measured at fair value on a recurring basis. The fair values of interest rate derivatives are determined with pricing models using LIBOR interest rate curves, spreads, volatilities and other relevant information developed using market data and are categorized as Level 2. The fair values of foreign currency derivatives are determined using the cash flows of the foreign exchange contract, discount rates to account for the passage of time and current foreign exchange market data and are categorized as Level 2.

There were no changes during the quarter ended October 2, 2010 to the Company’s valuation techniques used to measure asset and liability fair values on a recurring basis. There were no transfers between the three level categories and there were no Level 3 assets or liabilities measured on a quarterly basis during the quarter ended October 2, 2010. As of October 2, 2010, the Company did not have any non-financial assets or liabilities that are required to be measured at fair value on a recurring or non-recurring basis.

The following tables set forth by level within the fair value hierarchy the Company’s financial assets and liabilities accounted for at fair value on a recurring basis.


	Assets (Liabilities) at Fair Value as of
	October 2, 2010
	Quoted Prices		Significant
	In Active		Other			Significant
	Markets for		Observable			Unobservable
	Identical Assets		Inputs			Inputs
	(Level 1)		(Level 2)			(Level 3)

Foreign exchange derivative contracts	$	—	$	220		$	—
Foreign exchange derivative contracts		—		(2,759	)		—
Interest rate derivative contracts		—		20			—

Total	$	—	$	(2,519	)	$	—


	Assets (Liabilities) at Fair Value as of
	January 2, 2010
	Quoted Prices		Significant
	In Active		Other			Significant
	Markets for		Observable			Unobservable
	Identical Assets		Inputs			Inputs
	(Level 1)		(Level 2)			(Level 3)

Foreign exchange derivative contracts	$	—	$	614		$	—
Foreign exchange derivative contracts		—		(539	)		—

Total	$	—	$	75		$	—

Fair Value of Financial Instruments

The carrying amounts of cash and cash equivalents, trade accounts receivable, notes receivable and accounts payable approximated fair value as of October 2, 2010 and January 2, 2010. The fair value of debt was $2,036,470 and $1,881,868 as of October 2, 2010 and January 2, 2010 and had a carrying value of $2,021,672 and $1,892,235, respectively. The fair values were estimated using quoted market prices as provided in secondary markets which consider the Company’s credit risk and market related conditions. The carrying amounts of the Company’s notes payable approximated fair value as of October 2, 2010 and January 2, 2010, primarily due to the short-term nature of these instruments.

- Definition

This element represents the disclosure related to the fair value measurement of assets and liabilities which includes [financial] instruments measured at fair value that are classified in stockholders' equity. Such assets and liabilities may be measured on a recurring or nonrecurring basis. The disclosures which may be required or desired include: (1) for assets and liabilities measured on a recurring basis, disclosure may include: (a) the fair value measurements at the reporting date; (b) the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets or liabilities (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3); (c) for fair value measurements using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (i) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (ii) purchases, sales, issuances, and settlements (net); (iii) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs); (d) the amount of the total gains or losses for the period in subparagraph (c) (i) above included in earnings (or changes in net assets) that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date and a description of where those unrealized gains or losses are reported in the statement of income (or activities); (e) the valuation technique(s) used to measure fair value and a discussion of changes in valuation techniques, if any, during the period and (2) for assets and liabilities that are measured at fair value on a nonrecurring basis (for example, impaired assets) disclosure may include, in addition to (a) above: (a) the reasons for the fair value measurements recorded; (b) the same as (b) above; (c) for fair value measurements using significant unobservable inputs (Level 3), a description of the inputs and the information used to develop the inputs; and (d) the valuation technique(s) used to measure fair value and a discussion of changes, if any, in the valuation technique(s) used to measure similar assets and/or liabilities in prior periods.

+ References+ Details

Comprehensive Income

9 Months Ended

Oct. 02, 2010

Comprehensive Income [Abstract]

Comprehensive Income


(9)	Comprehensive Income

The Company’s comprehensive income is as follows:


	Quarter Ended						Nine Months Ended
	October 2,			October 3,			October 2,			October 3,
	2010			2009			2010			2009

Net income	$	61,312		$	41,138		$	183,237		$	52,365
Translation adjustments		8,399			8,047			2,079			16,303
Amortization of loss on interest rate hedge, net of tax of $1,672, $0, $5,476 and $0, respectively		2,519			—			8,256			—
Net derivative activity on qualifying cash flow hedges, net of tax of $(771), $(524), $(540) and $5,800, respectively		(1,162	)		(823	)		(814	)		9,108
Recognition of loss from pension plan settlement, net of tax of $53, $1,227, $53 and $1,227, respectively		69			1,928			69			1,928
Amounts amortized into net periodic cost:
Prior service cost, net of tax of $3, $3, $9 and $9, respectively		4			4			12			12
Actuarial loss, net of tax of $860, $888, $2,580 and $2,508, respectively		1,297			1,396			3,891			3,938

Comprehensive income	$	72,438		$	51,690		$	196,730		$	83,654

- Definition

This label may include the following: 1) the amount of income tax expense or benefit allocated to each component of other comprehensive income, including reclassification adjustments, 2) the reclassification adjustments for each classification of other comprehensive income and 3) the ending accumulated balances for each component of comprehensive income. Components of comprehensive income include: (1) foreign currency translation adjustments; (2) gains and losses on foreign currency transactions that are designated as, and are effective as, economic hedges of a net investment in a foreign entity; (3) gains and losses on intercompany foreign currency transactions that are of a long-term-investment nature, when the entities to the transaction are consolidated, combined, or accounted for by the equity method in the reporting enterprise's financial statements; (4) change in the market value of a futures contract that qualifies as a hedge of an asset reported at fair value; (5) unrealized holding gains and losses on available-for-sale securities and that resulting from transfers of debt securities from the held-to-maturity category to the available-for-sale category; (6) a net loss recognized as an additional pension liability not yet recognized as net periodic pension cost; and (7) the net gain or loss and net prior service cost or credit for pension plans and other postretirement benefit plans.

+ References+ Details

Income Taxes

9 Months Ended

Oct. 02, 2010

Income Taxes [Abstract]

Income Taxes


(10)	Income Taxes

The Company’s effective income tax rate was 20% and 12% for the quarter and nine months ended October 2, 2010, respectively, and 14% and 16% for the quarter and nine months ended October 3, 2009, respectively.

The higher effective income tax rate of 20% for the quarter ended October 2, 2010 compared to 14% for the quarter ended October 3, 2009 was primarily attributable to a lower proportion of the Company’s earnings attributed to foreign subsidiaries in the quarter ended October 2, 2010 which are taxed at rates lower than the U.S. statutory rate. The lower effective income tax rate of 12% for the nine months ended October 2, 2010 compared to 16% for the nine months ended October 3, 2009 was primarily attributable to a discrete, non-recurring income tax benefit of approximately $20 million for the nine months ended October 2, 2010, partially offset by a lower proportion of the Company’s earnings attributed to foreign subsidiaries in the quarter ended October 2, 2010 which are taxed at rates lower than the U.S. statutory rate. The income tax benefit resulted from a change in estimate associated with the remeasurement of unrecognized tax benefit accruals and the determination that certain tax positions had been effectively settled following the finalization of tax reviews and audits for amounts that were less than originally anticipated.

The Company and Sara Lee Corporation (“Sara Lee”) entered into a tax sharing agreement in connection with the spin off of the Company from Sara Lee on September 5, 2006. Under the tax sharing agreement, within 180 days after Sara Lee filed its final consolidated tax return for the period that included September 5, 2006, Sara Lee was required to deliver to the Company a computation of the amount of deferred taxes attributable to the Company’s United States and Canadian operations that would be included on the Company’s opening balance sheet as of September 6, 2006 (“as finally determined”) which has been done. The Company has the right to participate in the computation of the amount of deferred taxes. Under the tax sharing agreement, if substituting the amount of deferred taxes as finally determined for the amount of estimated deferred taxes that were included on that balance sheet at the time of the spin off causes a decrease in the net book value reflected on that balance sheet, then Sara Lee will be required to pay the Company the amount of such decrease. If such substitution causes an increase in the net book value reflected on that balance sheet, then the Company will be required to pay Sara Lee the amount of such increase. For purposes of this computation, the Company’s deferred taxes are the amount of deferred tax benefits (including deferred tax consequences attributable to deductible temporary differences and carryforwards) that would be recognized as assets on the Company’s balance sheet computed in accordance with GAAP, but without regard to valuation allowances, less the amount of deferred tax liabilities (including deferred tax consequences attributable to taxable temporary differences) that would be recognized as liabilities on the Company’s opening balance sheet computed in accordance with GAAP, but without regard to valuation allowances. Neither the Company nor Sara Lee will be required to make any other payments to the other with respect to deferred taxes.

Based on the Company’s computation of the final amount of deferred taxes for the Company’s opening balance sheet as of September 6, 2006, the amount that is expected to be collected from Sara Lee based on the Company’s computation of $72,223, which reflects a preliminary cash installment received from Sara Lee of $18,000, is included as a receivable in “Deferred tax assets and other current assets” in the Condensed Consolidated Balance Sheets as of October 2, 2010 and January 2, 2010. The Company and Sara Lee have exchanged information in connection with this matter, but Sara Lee has disagreed with the Company’s computation. In accordance with the dispute resolution provisions of the tax sharing agreement, in August 2009, the Company submitted the dispute to binding arbitration. The arbitration process is ongoing, and the Company will continue to prosecute its claim. The Company does not believe that the resolution of this dispute will have a material impact on the Company’s financial position, results of operations or cash flows.

Business Segment Information

9 Months Ended

Oct. 02, 2010

Business Segment Information [Abstract]

Business Segment Information


(11)	Business Segment Information

The Company’s operations are managed and reported in five operating segments, each of which is a reportable segment for financial reporting purposes: Innerwear, Outerwear, Hosiery, Direct to Consumer and International. These segments are organized principally by product category, geographic location and distribution channel. Each segment has its own management that is responsible for the operations of the segment’s businesses but the segments share a common supply chain and media and marketing platforms. In October 2009, the Company completed the sale of its yarn operations and, as a result, the Company no longer has net sales in the Other segment, which was primarily comprised of sales of yarn to third parties.

The types of products and services from which each reportable segment derives its revenues are as follows:


	•	Innerwear sells basic branded products that are replenishment in nature under the product categories of women’s intimate apparel, men’s underwear, kids’ underwear and socks.

	•	Outerwear sells basic branded products that are primarily seasonal in nature under the product categories of casualwear and activewear.

	•	Hosiery sells products in categories such as pantyhose, knee highs and tights.

	•	Direct to Consumer includes the Company’s value-based (“outlet”) stores and Internet operations which sell products from the Company’s portfolio of leading brands. The Company’s Internet operations are supported by its catalogs.

	•	International primarily relates to the Latin America, Asia, Canada, Europe and South America geographic locations which sell products that span across the Innerwear, Outerwear and Hosiery reportable segments.

The Company evaluates the operating performance of its segments based upon segment operating profit, which is defined as operating profit before general corporate expenses, amortization of trademarks and other identifiable intangibles and restructuring and related accelerated depreciation charges and inventory write-offs. The accounting policies of the segments are consistent with those described in Note 2 to the Company’s consolidated financial statements included in its Annual Report on Form 10-K for the year ended January 2, 2010.


	Quarter Ended						Nine Months Ended
	October 2,			October 3,			October 2,			October 3,
	2010			2009			2010			2009

Net sales:
Innerwear	$	512,486		$	467,577		$	1,522,553		$	1,393,904
Outerwear		389,474			328,339			894,653			772,685
Hosiery		37,442			40,978			117,273			131,326
Direct to Consumer		100,327			100,204			278,680			275,058
International		133,633			117,830			363,895			317,541
Other		—			3,745			—			12,022

Total net sales	$	1,173,362		$	1,058,673		$	3,177,054		$	2,902,536

	Quarter Ended						Nine Months Ended
	October 2,			October 3,			October 2,			October 3,
	2010			2009			2010			2009

Segment operating profit (loss):
Innerwear	$	55,804		$	54,678		$	219,475		$	185,346
Outerwear		34,308			38,706			56,631			31,869
Hosiery		11,333			12,781			38,672			42,358
Direct to Consumer		10,446			13,843			18,583			29,189
International		16,754			12,834			42,392			31,971
Other		—			(462	)		—			(2,272	)

Total segment operating profit		128,645			132,380			375,753			318,461
Items not included in segment operating profit (loss):
General corporate expenses		(11,667	)		(20,285	)		(44,130	)		(62,979	)
Amortization of trademarks and other identifiable intangibles		(2,918	)		(3,112	)		(9,046	)		(9,293	)
Restructuring		—			(15,104	)		—			(46,319	)
Inventory write-offs included in cost of sales		—			(269	)		—			(3,516	)
Accelerated depreciation included in cost of sales		—			(118	)		—			(2,392	)
Accelerated depreciation included in selling, general and administrative expenses		—			(183	)		—			(538	)

Total operating profit		114,060			93,309			322,577			193,424
Other expenses		(1,094	)		(2,423	)		(5,128	)		(6,537	)
Interest expense, net		(36,326	)		(42,941	)		(110,394	)		(124,548	)

Income before income tax expense	$	76,640		$	47,945		$	207,055		$	62,339


	Quarter Ended				Nine Months Ended
	October 2,		October 3,		October 2,		October 3,
	2010		2009		2010		2009

Depreciation and amortization expense:
Innerwear	$	8,631	$	8,069	$	25,847	$	27,054
Outerwear		5,337		5,489		15,026		16,370
Hosiery		629		979		2,157		3,164
Direct to Consumer		1,589		1,810		4,359		4,172
International		418		561		1,573		1,589
Other		—		59		—		187

		16,604		16,967		48,962		52,536
Corporate		3,945		4,173		14,316		14,233

Total depreciation and amortization expense	$	20,549	$	21,140	$	63,278	$	66,769

	Quarter Ended				Nine Months Ended
	October 2,		October 3,		October 2,		October 3,
	2010		2009		2010		2009

Additions to long-lived assets:
Innerwear	$	10,186	$	8,669	$	37,326	$	37,677
Outerwear		6,348		9,515		25,998		47,664
Hosiery		124		146		426		549
Direct to Consumer		2,388		1,498		9,741		7,734
International		504		368		1,763		857
Other		—		—		—		19

		19,550		20,196		75,254		94,500
Corporate		921		1,697		3,316		5,209

Total additions to long-lived assets	$	20,471	$	21,893	$	78,570	$	99,709

Consolidating Financial Information

9 Months Ended

Oct. 02, 2010

Consolidating Financial Information [Abstract]

Consolidating Financial Information


(12)	Consolidating Financial Information

In accordance with the indenture governing the Floating Rate Senior Notes and the indenture governing the Company’s $500,000 8.000% Senior Notes due 2016 (the “8% Senior Notes”) (together, the “Indentures”), certain of the Company’s subsidiaries have guaranteed the Company’s obligations under the Floating Rate Senior Notes and the 8% Senior Notes, respectively. The following presents the condensed consolidating financial information separately for:

(i) Parent Company, the issuer of the guaranteed obligations. Parent Company includes Hanesbrands Inc. and its 100% owned operating divisions which are not legal entities, and excludes its subsidiaries which are legal entities;

(ii) Guarantor subsidiaries, on a combined basis, as specified in the Indentures;

(iii) Non-guarantor subsidiaries, on a combined basis;

(iv) Consolidating entries and eliminations representing adjustments to (a) eliminate intercompany transactions between or among Parent Company, the guarantor subsidiaries and the non-guarantor subsidiaries, (b) eliminate intercompany profit in inventory, (c) eliminate the investments in our subsidiaries and (d) record consolidating entries; and

(v) Parent Company, on a consolidated basis.

The Floating Rate Senior Notes and the 8% Senior Notes are fully and unconditionally guaranteed on a joint and several basis by each guarantor subsidiary, each of which is wholly owned, directly or indirectly, by Hanesbrands Inc. Each entity in the consolidating financial information follows the same accounting policies as described in the Company’s consolidated financial statements included in its Annual Report on Form 10-K for the year ended January 2, 2010, except for the use by the Parent Company and guarantor subsidiaries of the equity method of accounting to reflect ownership interests in subsidiaries which are eliminated upon consolidation.


	Condensed Consolidating Statement of Income
	Quarter Ended October 2, 2010
								Consolidating
	Parent		Guarantor			Non-Guarantor		Entries and
	Company		Subsidiaries			Subsidiaries		Eliminations			Consolidated

Net sales	$	1,104,713	$	113,915		$	830,265	$	(875,531	)	$	1,173,362
Cost of sales		875,963		43,270			748,701		(858,447	)		809,487

Gross profit		228,750		70,645			81,564		(17,084	)		363,875
Selling, general and administrative expenses		201,440		20,282			27,784		309			249,815

Operating profit (loss)		27,310		50,363			53,780		(17,393	)		114,060
Equity in earnings (loss) of subsidiaries		71,944		33,908			—		(105,852	)		—
Other expenses		1,094		—			—		—			1,094
Interest expense, net		33,678		(22	)		2,673		(3	)		36,326

Income (loss) before income tax expense		64,482		84,293			51,107		(123,242	)		76,640
Income tax expense		3,170		7,635			4,523		—			15,328

Net income (loss)	$	61,312	$	76,658		$	46,584	$	(123,242	)	$	61,312


	Condensed Consolidating Statement of Income
	Quarter Ended October 3, 2009
								Consolidating
	Parent			Guarantor		Non-Guarantor		Entries and
	Company			Subsidiaries		Subsidiaries		Eliminations			Consolidated

Net sales	$	1,054,178		$	115,094	$	675,167	$	(785,766	)	$	1,058,673
Cost of sales		857,175			42,714		592,759		(790,655	)		701,993

Gross profit		197,003			72,380		82,408		4,889			356,680
Selling, general and administrative expenses		194,025			23,060		30,374		808			248,267
Restructuring		14,236			—		868		—			15,104

Operating profit (loss)		(11,258	)		49,320		51,166		4,081			93,309
Equity in earnings (loss) of subsidiaries		88,536			7,515		—		(96,051	)		—
Other expenses		2,423			—		—		—			2,423
Interest expense, net		32,145			5,285		5,523		(12	)		42,941

Income (loss) before income tax expense		42,710			51,550		45,643		(91,958	)		47,945
Income tax expense		1,572			461		4,774		—			6,807

Net income (loss)	$	41,138		$	51,089	$	40,869	$	(91,958	)	$	41,138


	Condensed Consolidating Statement of Income
	Nine Months Ended October 2, 2010
									Consolidating
	Parent			Guarantor			Non-Guarantor		Entries and
	Company			Subsidiaries			Subsidiaries		Eliminations			Consolidated

Net sales	$	3,034,863		$	319,231		$	2,317,522	$	(2,494,562	)	$	3,177,054
Cost of sales		2,423,688			118,694			2,054,675		(2,486,114	)		2,110,943

Gross profit		611,175			200,537			262,847		(8,448	)		1,066,111
Selling, general and administrative expenses		589,755			69,018			83,734		1,027			743,534

Operating profit (loss)		21,420			131,519			179,113		(9,475	)		322,577
Equity in earnings (loss) of subsidiaries		260,220			117,996			—		(378,216	)		—
Other expenses		5,128			—			—		—			5,128
Interest expense, net		101,490			(67	)		8,971		—			110,394

Income (loss) before income tax expense (benefit)		175,022			249,582			170,142		(387,691	)		207,055
Income tax expense (benefit)		(8,215	)		20,271			11,762		—			23,818

Net income (loss)	$	183,237		$	229,311		$	158,380	$	(387,691	)	$	183,237


	Condensed Consolidating Statement of Income
	Nine Months Ended October 3, 2009
								Consolidating
	Parent			Guarantor		Non-Guarantor		Entries and
	Company			Subsidiaries		Subsidiaries		Eliminations			Consolidated

Net sales	$	2,986,315		$	317,083	$	2,061,233	$	(2,462,095	)	$	2,902,536
Cost of sales		2,469,249			115,549		1,827,681		(2,451,890	)		1,960,589

Gross profit		517,066			201,534		233,552		(10,205	)		941,947
Selling, general and administrative expenses		558,119			67,120		75,403		1,562			702,204
Restructuring		42,260			—		4,059		—			46,319

Operating profit (loss)		(83,313	)		134,414		154,090		(11,767	)		193,424
Equity in earnings (loss) of subsidiaries		231,881			81,693		—		(313,574	)		—
Other expenses		6,537			—		—		—			6,537
Interest expense, net		93,824			17,523		13,202		(1	)		124,548

Income (loss) before income tax expense (benefit)		48,207			198,584		140,888		(325,340	)		62,339
Income tax expense (benefit)		(4,158	)		3,320		10,812		—			9,974

Net income (loss)	$	52,365		$	195,264	$	130,076	$	(325,340	)	$	52,365


	Condensed Consolidating Balance Sheet
	October 2, 2010
							Consolidating
	Parent		Guarantor		Non-Guarantor		Entries and
	Company		Subsidiaries		Subsidiaries		Eliminations			Consolidated

Assets
Cash and cash equivalents	$	39,521	$	1,256	$	34,719	$	—		$	75,496
Trade accounts receivable less allowances		81,773		5,501		444,086		—			531,360
Inventories		1,072,217		63,879		370,517		(129,327	)		1,377,286
Deferred tax assets and other current assets		236,708		10,226		24,960		(1,024	)		270,870

Total current assets		1,430,219		80,862		874,282		(130,351	)		2,255,012

Property, net		120,507		23,002		452,949		—			596,458
Trademarks and other identifiable intangibles, net		17,198		90,719		21,162		—			129,079
Goodwill		232,883		16,071		73,048		—			322,002
Investments in subsidiaries		1,169,141		875,942		—		(2,045,083	)		—
Deferred tax assets and other noncurrent assets		264,278		275,125		119,686		(206,347	)		452,742

Total assets	$	3,234,226	$	1,361,721	$	1,541,127	$	(2,381,781	)	$	3,755,293

Liabilities and Stockholders’ Equity
Accounts payable	$	282,748	$	4,525	$	174,606	$	—		$	461,879
Accrued liabilities		191,764		39,179		72,153		34			303,130
Notes payable		—		—		42,651		—			42,651
Current portion of debt		—		—		150,000		—			150,000

Total current liabilities		474,512		43,704		439,410		34			957,660

Long-term debt		1,871,672		—		—		—			1,871,672
Other noncurrent liabilities		349,515		4,670		33,249		—			387,434

Total liabilities		2,695,699		48,374		472,659		34			3,216,766
Stockholders’ equity		538,527		1,313,347		1,068,468		(2,381,815	)		538,527

Total liabilities and stockholders’ equity	$	3,234,226	$	1,361,721	$	1,541,127	$	(2,381,781	)	$	3,755,293


	Condensed Consolidating Balance Sheet
	January 2, 2010
							Consolidating
	Parent		Guarantor		Non-Guarantor		Entries and
	Company		Subsidiaries		Subsidiaries		Eliminations			Consolidated

Assets
Cash and cash equivalents	$	12,805	$	1,646	$	24,492	$	—		$	38,943
Trade accounts receivable less allowances		47,654		5,973		398,807		(1,893	)		450,541
Inventories		838,685		52,165		291,062		(132,708	)		1,049,204
Deferred tax assets and other current assets		233,073		13,605		37,643		(452	)		283,869

Total current assets		1,132,217		73,389		752,004		(135,053	)		1,822,557

Property, net		154,476		17,787		430,563		—			602,826
Trademarks and other identifiable intangibles, net		20,677		109,833		5,704		—			136,214
Goodwill		232,882		16,934		72,186		—			322,002
Investments in subsidiaries		927,105		730,159		—		(1,657,264	)		—
Deferred tax assets and other noncurrent assets		371,287		153,617		29,259		(111,198	)		442,965

Total assets	$	2,838,644	$	1,101,719	$	1,289,716	$	(1,903,515	)	$	3,326,564

Liabilities and Stockholders’ Equity
Accounts payable	$	172,802	$	5,237	$	88,285	$	85,647		$	351,971
Accrued liabilities		207,079		22,902		65,689		(35	)		295,635
Notes payable		—		—		66,681		—			66,681
Current portion of debt		64,688		—		100,000		—			164,688

Total current liabilities		444,569		28,139		320,655		85,612			878,975

Long-term debt		1,727,547		—		—		—			1,727,547
Other noncurrent liabilities		331,809		3,626		45,597		4,291			385,323

Total liabilities		2,503,925		31,765		366,252		89,903			2,991,845
Stockholders’ equity		334,719		1,069,954		923,464		(1,993,418	)		334,719

Total liabilities and stockholders’ equity	$	2,838,644	$	1,101,719	$	1,289,716	$	(1,903,515	)	$	3,326,564


	Condensed Consolidating Statement of Cash Flows
	Nine Months Ended October 2, 2010
										Consolidating
	Parent			Guarantor			Non-Guarantor			Entries and
	Company			Subsidiaries			Subsidiaries			Eliminations			Consolidated

Net cash provided by (used in) operating activities	$	168,472		$	124,951		$	46,204		$	(376,701	)	$	(37,074	)

Investing activities:
Purchases of property, plant and equipment		(21,652	)		(8,989	)		(47,929	)		—			(78,570	)
Proceeds from sales of assets		44,436			—			1,033			—			45,469
Other		(519	)		—			—			—			(519	)

Net cash provided by (used in) investing activities		22,265			(8,989	)		(46,896	)		—			(33,620	)

Financing activities:
Borrowings on notes payable		—			—			991,061			—			991,061
Repayments on notes payable		—			—			(1,015,338	)		—			(1,015,338	)
Payments to amend credit facilities		(1,688	)		—			—			—			(1,688	)
Borrowings on revolving loan facility		1,597,500			—			—			—			1,597,500
Repayments on revolving loan facility		(1,459,000	)		—			—			—			(1,459,000	)
Repayment of debt under 2009 Senior Secured Credit Facility		(59,063	)		—			—			—			(59,063	)
Borrowings on Accounts Receivable Securitization Facility		—			—			191,424			—			191,424
Repayments on Accounts Receivable
Securitization Facility		—			—			(141,424	)		—			(141,424	)
Proceeds from stock options exercised		3,437			—			—			—			3,437
Other		342			—			(34	)		—			308
Net transactions with related entities		(245,549	)		(116,352	)		(14,800	)		376,701			—

Net cash provided by (used in) financing activities		(164,021	)		(116,352	)		10,889			376,701			107,217

Effect of changes in foreign exchange rates on cash		—			—			30			—			30

Increase (decrease) in cash and cash equivalents		26,716			(390	)		10,227			—			36,553
Cash and cash equivalents at beginning of year		12,805			1,646			24,492			—			38,943

Cash and cash equivalents at end of period	$	39,521		$	1,256		$	34,719		$	—		$	75,496


	Condensed Consolidating Statement of Cash Flows
	Nine Months Ended October 3, 2009
										Consolidating
	Parent			Guarantor			Non-Guarantor			Entries and
	Company			Subsidiaries			Subsidiaries			Eliminations			Consolidated

Net cash provided by (used in) operating activities	$	557,032		$	27,338		$	(64,672	)	$	(308,891	)	$	210,807

Investing activities:
Purchases of property, plant and equipment		(15,010	)		(7,344	)		(77,355	)		—			(99,709	)
Proceeds from sales of assets		11,896			—			3,918			—			15,814
Other		(601	)		10			—			601			10

Net cash provided by (used in) investing activities		(3,715	)		(7,334	)		(73,437	)		601			(83,885	)

Financing activities:
Borrowings on notes payable		—			—			1,169,301			—			1,169,301
Repayments on notes payable		—			—			(1,168,799	)		—			(1,168,799	)
Payments to amend credit facilities		(20,570	)		—			(1,595	)		—			(22,165	)
Borrowings on revolving loan facility		1,353,525			—			—			—			1,353,525
Repayments on revolving loan facility		(1,353,525	)		—			—			—			(1,353,525	)
Repayments of debt under 2006 Senior Secured Credit Facility		(140,250	)		—			—			—			(140,250	)
Borrowings on Accounts Receivable Securitization Facility		—			—			176,616			—			176,616
Repayments on Accounts Receivable Securitization Facility		—			—			(170,190	)		—			(170,190	)
Proceeds from stock options exercised		376			—			—			—			376
Other		(800	)		—			(24	)		—			(824	)
Net transactions with related entities		(402,945	)		(20,828	)		115,483			308,290			—

Net cash provided by (used in) financing activities		(564,189	)		(20,828	)		120,792			308,290			(155,935	)

Effect of changes in foreign exchange rates on cash		—			—			288			—			288

Decrease in cash and cash equivalents		(10,872	)		(824	)		(17,029	)		—			(28,725	)
Cash and cash equivalents at beginning of year		16,210			2,355			48,777			—			67,342

Cash and cash equivalents at end of period	$	5,338		$	1,531		$	31,748		$	—		$	38,617

- Definition

Text block that encapsulates the detailed table comprising the condensed financial statements (balance sheet, income statement and statement of cash flows), normally using the registrant (parent) as the sole domain member. If condensed consolidating financial statements are being presented, other domain members (in addition to parent) such as guarantor subsidiaries, non-guarantor subsidiaries, and the consolidation eliminations, will be included in order that the respective monetary amounts for each of the domains will aggregate to the respective amounts on the consolidated financial statements. The line items are the various captions used to compile the condensed financial statements. Using extensions, most, if not all, of the elements representing condensed financial statement captions will be the same as those used for the consolidated financial statements captions.

+ References+ Details

Restructuring

9 Months Ended

Oct. 02, 2010

Restructuring [Abstract]

Restructuring


(13)	Restructuring

The Company has restructured its supply chain over the past three years to create more efficient production clusters that utilize fewer, larger facilities and to balance production capability between the Western Hemisphere and Asia. With its global supply chain infrastructure substantially in place, the Company is now focused on optimizing its supply chain to further enhance efficiency, improve working capital and asset turns and reduce costs. The Company is focused on optimizing the working capital needs of its supply chain through several initiatives, such as supplier-managed inventory for raw materials and sourced goods ownership arrangements. The consolidation of the Company’s distribution network is still in process but is not expected to result in any substantial charges in future periods. The distribution network consolidation involves the implementation of new warehouse management systems and technology, and opening of new distribution centers and new third-party logistics providers to replace parts of the Company’s legacy distribution network.

The reported results for the quarters and nine months ended October 2, 2010 and October 3, 2009 reflect amounts recognized for restructuring actions, including the impact of certain actions that were completed for amounts more favorable than previously estimated. The impact of restructuring efforts on income before income tax expense is summarized as follows:


	Quarter Ended				Nine Months Ended
	October 2,		October 3,		October 2,		October 3,
	2010		2009		2010		2009

Restructuring programs:
Year ended January 2, 2010 restructuring actions	$	—	$	12,278	$	—	$	31,522
Year ended January 3, 2009 restructuring actions		—		2,116		—		15,991
Year ended December 29, 2007 and prior
restructuring actions		—		1,280		—		5,252

	$	—	$	15,674	$	—	$	52,765

The following table illustrates where the costs associated with these actions are recognized in the Condensed Consolidated Statements of Income:


	Quarter Ended				Nine Months Ended
	October 2,		October 3,		October 2,		October 3,
	2010		2009		2010		2009

Cost of sales	$	—	$	387	$	—	$	5,908
Selling, general and administrative expenses		—		183		—		538
Restructuring		—		15,104		—		46,319

	$	—	$	15,674	$	—	$	52,765

Components of the restructuring actions are as follows:


	Quarter Ended				Nine Months Ended
	October 2,		October 3,		October 2,		October 3,
	2010		2009		2010		2009

Accelerated depreciation	$	—	$	301	$	—	$	2,930
Inventory write-offs		—		269		—		3,516
Fixed asset impairments		—		5,482		—		6,448
Employee termination and other benefits		—		5,649		—		20,859
Noncancelable lease and other contractual obligations and other		—		3,973		—		19,012

	$	—	$	15,674	$	—	$	52,765

Rollforward of accrued restructuring is as follows:


	Nine Months Ended
	October 2, 2010

Beginning accrual	$	22,399
Cash payments		(12,781	)
Adjustments		(2,315	)

Ending accrual	$	7,303

The accrual balance as of October 2, 2010 is comprised of $7,216 in current accrued liabilities and $87 in other noncurrent liabilities. The $7,216 in current accrued liabilities consists of $3,737 for noncancelable lease and other contractual obligations and $3,479 for employee termination and other benefits. The $87 in other noncurrent liabilities primarily consists of noncancelable lease and other contractual obligations.

Adjustments to previous estimates resulted from activity related to prior year restructuring actions.