Document and Entity Information (USD $)	12 Months Ended
Document and Entity Information (USD $)	Jan. 01, 2011	Feb. 14, 2011	Jul. 02, 2010
Document and Entity Information [Abstract]
Entity Registrant Name	Hanesbrands Inc.
Entity Central Index Key	0001359841
Document Type	10-K
Document Period End Date	Jan. 01, 2011
Amendment Flag	false
Document Fiscal Year Focus	2010
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--01-01
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 2,307,420,788
Entity Common Stock, Shares Outstanding		96,367,197

Consolidated Statements of Income (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Jan. 01, 2011	Jan. 02, 2010	Jan. 03, 2009
Consolidated Statements of Income [Abstract]
Net sales	$ 4,326,713	$ 3,891,275	$ 4,248,770
Cost of sales	2,911,944	2,626,001	2,871,420
Gross profit	1,414,769	1,265,274	1,377,350
Selling, general and administrative expenses	1,010,581	940,530	1,009,607
Restructuring		53,888	50,263
Operating profit	404,188	270,856	317,480
Other expense (income)	20,221	49,301	(634)
Interest expense, net	150,236	163,279	155,077
Income before income tax expense	233,731	58,276	163,037
Income tax expense	22,438	6,993	35,868
Net income	$ 211,293	$ 51,283	$ 127,169
Earnings per share:
Basic	$ 2.19	$ 0.54	$ 1.35
Diluted	$ 2.16	$ 0.54	$ 1.34
Weighted average shares outstanding:
Basic	96,500	95,158	94,171
Diluted	97,774	95,668	95,164

Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Jan. 01, 2011	Jan. 02, 2010
Assets
Cash and cash equivalents	$ 43,671	$ 38,943
Trade accounts receivable less allowances of $19,192 at January 1, 2011 and $25,776 at January 2, 2010	503,243	450,541
Inventories	1,322,719	1,049,204
Deferred tax assets	149,431	139,836
Other current assets	128,607	144,033
Total current assets	2,147,671	1,822,557
Property, net	631,254	602,826
Trademarks and other identifiable intangibles, net	178,622	136,214
Goodwill	430,144	322,002
Deferred tax assets	319,798	357,103
Other noncurrent assets	82,513	85,862
Total assets	3,790,002	3,326,564
Liabilities and Stockholders' Equity
Accounts payable	412,369	351,971
Accrued liabilities and other:
Payroll and employee benefits	89,303	76,315
Advertising and promotion	87,384	85,069
Restructuring	6,036	18,244
Other	93,580	116,007
Notes payable	50,678	66,681
Current portion of debt	90,000	164,688
Total current liabilities	829,350	878,975
Long-term debt	1,990,735	1,727,547
Pension and postretirement benefits	301,889	290,030
Other noncurrent liabilities	105,354	95,293
Total liabilities	3,227,328	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 - 96,207,025 at January 1, 2011 and 95,396,967 at January 2, 2010	962	954
Additional paid-in capital	294,829	287,955
Retained earnings	480,098	268,805
Accumulated other comprehensive loss	(213,215)	(222,995)
Total stockholders' equity	562,674	334,719
Total liabilities and stockholders' equity	$ 3,790,002	$ 3,326,564

Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Jan. 01, 2011	Jan. 02, 2010
Assets
Trade accounts receivable less allowances	$ 19,192	$ 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	96,207,025	95,396,967
Common stock, shares outstanding	96,207,025	95,396,967

Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Jan. 01, 2011	Jan. 02, 2010	Jan. 03, 2009
Operating activities:
Net income	$ 211,293	$ 51,283	$ 127,169
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	74,103	84,312	103,126
Amortization of intangibles	12,509	12,443	12,019
Restructuring		8,207	5,133
Write-off on early extinguishment of debt	16,526	2,423	1,332
Gain on repurchase of Floating Rate Senior Notes		(157)	(1,966)
Charges incurred for amendments of credit facilities		20,634
Interest rate hedge termination		26,029
Amortization of debt issuance costs	12,739	10,967	6,032
Amortization of loss on interest rate hedge	17,774
Stock compensation expense	19,534	37,697	31,449
Deferred taxes	15,794	(9,152)	(1,445)
Other	(3,432)	(10,252)	(1,616)
Changes in assets and liabilities:
Accounts receivable	(329)	(39,805)	163,687
Inventories	(231,845)	248,820	(182,971)
Other assets	11,597	22,210	(49,256)
Accounts payable	29,934	3,522	34,046
Accrued liabilities and other	(53,143)	(54,677)	(69,342)
Net cash provided by operating activities	133,054	414,504	177,397
Investing activities:
Purchases of property, plant and equipment	(106,240)	(126,825)	(186,957)
Acquisitions of businesses, net of cash acquired	(222,878)		(14,655)
Proceeds from sales of assets	45,642	37,965	25,008
Other	(519)	16	(644)
Net cash used in investing activities	(283,995)	(88,844)	(177,248)
Financing activities:
Borrowings on notes payable	1,394,782	1,628,764	602,627
Repayments on notes payable	(1,411,295)	(1,624,139)	(560,066)
Payments to amend and refinance credit facilities	(23,833)	(74,976)	(69)
Borrowings on revolving loan facility	2,228,500	2,034,026	791,000
Repayments on revolving loan facility	(2,280,000)	(1,982,526)	(791,000)
Incurrence of debt under the 2009 Senior Secured Credit Facility		750,000
Repayments of debt under 2009 Senior Secured Credit Facility	(750,000)
Repayment of debt under 2006 Senior Secured Credit Facility		(1,440,250)	(125,000)
Issuance of 6.375% Senior Notes	1,000,000
Issuance of 8% Senior Notes		500,000
Repurchase of Floating Rate Senior Notes		(2,788)	(4,354)
Borrowings on Accounts Receivable Securitization Facility	207,290	183,451	20,944
Repayments on Accounts Receivable Securitization Facility	(217,290)	(326,068)	(28,327)
Proceeds from stock options exercised	5,938	1,179	2,191
Stock repurchases			(30,275)
Transaction with Sara Lee Corporation			18,000
Other	1,593	(847)	(409)
Net cash provided by (used in) financing activities	155,685	(354,174)	(104,738)
Effect of changes in foreign exchange rates on cash	(16)	115	(2,305)
Increase (decrease) in cash and cash equivalents	4,728	(28,399)	(106,894)
Cash and cash equivalents at beginning of year	38,943	67,342	174,236
Cash and cash equivalents at end of year	$ 43,671	$ 38,943	$ 67,342

Consolidated Statements of Stockholders' Equity and Comprehensive Income (Loss) (USD $) In Thousands, except Share data	Total	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Loss
Beginning Balance at Dec. 29, 2007	$ 288,904	$ 954	$ 199,019	$ 117,849	$ (28,918)
Beginning Balance, Shares at Dec. 29, 2007		95,232,000
Net income	127,169			127,169
Translation adjustments	(29,463)				(29,463)
Net unrealized gain (loss) on qualifying cash flow hedges, net of tax of $24,683, $17,639 and $6,773 in 2009, 2010 and 2011, respectively	(38,818)				(38,818)
Net unrecognized gain (loss) from pension and postretirement plans, net of tax of $117,012, $1,835 and $2,608 in 2009, 2010 and 2011, respectively	(184,270)				(184,270)
Comprehensive income (loss)	(125,382)
Stock-based compensation	31,002		31,002
Exercise of stock options, vesting of restricted stock units and other,value	10,078	2	10,076
Exercise of stock options, vesting of restricted stock units and other, shares		456,000
Stock repurchases, value	(30,275)	(12)	(2,767)	(27,496)
Stock repurchases, shares		(1,224,000)
Net transactions related to spin off	10,828	(9)	10,837
Net transactions related to spin off shares		(944,000)
Ending Balance at Jan. 03, 2009	185,155	935	248,167	217,522	(281,469)
Ending Balance, Shares at Jan. 03, 2009		93,520,000
Net income	51,283			51,283
Translation adjustments	18,966				18,966
Net unrealized gain (loss) on qualifying cash flow hedges, net of tax of $24,683, $17,639 and $6,773 in 2009, 2010 and 2011, respectively	28,580				28,580
Net unrecognized gain (loss) from pension and postretirement plans, net of tax of $117,012, $1,835 and $2,608 in 2009, 2010 and 2011, respectively	10,928				10,928
Comprehensive income (loss)	109,757
Stock-based compensation	37,391		37,391
Exercise of stock options, vesting of restricted stock units and other,value	2,416	19	2,397
Exercise of stock options, vesting of restricted stock units and other, shares		1,877,000
Ending Balance at Jan. 02, 2010	334,719	954	287,955	268,805	(222,995)
Ending Balance, Shares at Jan. 02, 2010	95,396,967	95,397,000
Net income	211,293			211,293
Translation adjustments	3,661				3,661
Net unrealized gain (loss) on qualifying cash flow hedges, net of tax of $24,683, $17,639 and $6,773 in 2009, 2010 and 2011, respectively	10,189				10,189
Net unrecognized gain (loss) from pension and postretirement plans, net of tax of $117,012, $1,835 and $2,608 in 2009, 2010 and 2011, respectively	(4,070)				(4,070)
Comprehensive income (loss)	221,073
Stock-based compensation	19,226		19,226
Exercise of stock options, vesting of restricted stock units and other,value	3,325	8	3,317
Exercise of stock options, vesting of restricted stock units and other, shares		810,000
Net transactions related to spin off	(15,669)		(15,669)
Ending Balance at Jan. 01, 2011	$ 562,674	$ 962	$ 294,829	$ 480,098	$ (213,215)
Ending Balance, Shares at Jan. 01, 2011	96,207,025	96,207,000

Consolidated Statements of Stockholders' Equity and Comprehensive Income (Loss) (Parenthetical) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Jan. 01, 2011	Jan. 02, 2010	Jan. 03, 2009
Consolidated Statements of Stockholders' Equity and Comprehensive Income (Loss) [Abstract]
Tax on unrealized gain (loss) on qualifying cash flow hedges	$ 6,773	$ 17,639	$ 24,683
Tax on unrecognized gain (loss) from pension and postretirement plans	$ 2,608	$ 1,835	$ 117,012

Background	12 Months Ended
Background	Jan. 01, 2011
Background [Abstract]
Background	(1) Background Hanesbrands Inc., a Maryland corporation (the “Company”), is a consumer goods company with a portfolio of leading apparel brands, including Hanes, Champion, Playtex, Bali, L’eggs, Just My Size, barely there, Wonderbra, Stedman, Outer Banks, Zorba, Rinbros, Duofold and Gear for Sports. The Company designs, manufactures, sources and sells a broad range of basic apparel such as T-shirts, bras, panties, men’s underwear, kids’ underwear, casualwear, activewear, socks and hosiery. The Company’s fiscal year ends on the Saturday closest to December 31. All references to “2010”, “2009” and “2008” relate to the 52 week fiscal years ended on January 1, 2011 and January 2, 2010, and the 53 week fiscal year ended on January 3, 2009, respectively.

Summary of Significant Accounting Policies	12 Months Ended
Summary of Significant Accounting Policies	Jan. 01, 2011
Summary of Significant Accounting Policies [Abstract]
Summary of Significant Accounting Policies	(2) Summary of Significant Accounting Policies *(a) Consolidation* The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. *(b) Use of Estimates* The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make use of estimates and assumptions that affect the reported amount of assets and liabilities, certain financial statement disclosures at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results may vary from these estimates. *(c) Foreign Currency Translation* Foreign currency-denominated assets and liabilities are translated into U.S. dollars at exchange rates existing at the respective balance sheet dates. Translation adjustments resulting from fluctuations in exchange rates are recorded as a separate component of accumulated other comprehensive loss within stockholders’ equity. The Company translates the results of operations of its foreign operations at the average exchange rates during the respective periods. Gains and losses resulting from foreign currency transactions are included in the “Selling, general and administrative expenses” line of the Consolidated Statements of Income. *(d) Sales Recognition and Incentives* The Company recognizes revenue when (i) there is persuasive evidence of an arrangement, (ii) the sales price is fixed or determinable, (iii) title and the risks of ownership have been transferred to the customer and (iv) collection of the receivable is reasonably assured, which occurs primarily upon shipment. The Company records a sales reduction for returns and allowances based upon historical return experience. The Company earns royalty revenues through license agreements with manufacturers of other consumer products that incorporate certain of the Company’s brands. The Company accrues revenue earned under these contracts based upon reported sales from the licensee. The Company offers a variety of sales incentives to resellers and consumers of its products, and the policies regarding the recognition and display of these incentives within the Consolidated Statements of Income are as follows: Discounts, Coupons, and Rebates The Company recognizes the cost of these incentives at the later of the date at which the related sale is recognized or the date at which the incentive is offered. The cost of these incentives is estimated using a number of factors, including historical utilization and redemption rates. All cash incentives of this type are included in the determination of net sales. The Company includes incentives offered in the form of free products in the determination of cost of sales. Volume-Based Incentives These incentives typically involve rebates or refunds of cash that are redeemable only if the reseller completes a specified number of sales transactions. Under these incentive programs, the Company estimates the anticipated rebate to be paid and allocates a portion of the estimated cost of the rebate to each underlying sales transaction with the customer. The Company includes these amounts in the determination of net sales. Cooperative Advertising Under these arrangements, the Company agrees to reimburse the reseller for a portion of the costs incurred by the reseller to advertise and promote certain of the Company’s products. The Company recognizes the cost of cooperative advertising programs in the period in which the advertising and promotional activity first takes place. Fixtures and Racks Store fixtures and racks are periodically used by resellers to display Company products. The Company expenses the cost of these fixtures and racks in the period in which they are delivered to the resellers. The Company includes the costs of fixtures and racks incurred by resellers and charged back to the Company in the determination of net sales. Fixtures and racks purchased by the Company and provided to resellers are included in selling, general and administrative expenses. *(e) Advertising Expense* Advertising costs, which include the development and production of advertising materials and the communication of these materials through various forms of media, are expensed in the period the advertising first takes place. The Company recognized advertising expense in the “Selling, general and administrative expenses” caption in the Consolidated Statements of Income of $185,488, $166,467 and $187,034 in 2010, 2009, and 2008, respectively. *(f) Shipping and Handling Costs* Revenue received for shipping and handling costs is included in net sales and was $22,054, $22,434, and $24,244 in 2010, 2009 and 2008, respectively. Shipping costs, that comprise payments to third party shippers, and handling costs, which consist of warehousing costs in the Company’s various distribution facilities, were $250,029, $222,169 and $238,340 in 2010, 2009 and 2008, respectively. The Company recognizes shipping, handling and distribution costs in the “Selling, general and administrative expenses” line of the Consolidated Statements of Income. *(g) Catalog Expenses* The Company incurs expenses for printing catalogs for products to aid in the Company’s sales efforts. The Company initially records these expenses as a prepaid item and charges it against selling, general and administrative expenses over time as the catalog is used. Expenses are recognized at a rate that approximates historical experience with regard to the timing and amount of sales attributable to a catalog distribution. *(h) Research and Development* Research and development costs are expensed as incurred and are included in the “Selling, general and administrative expenses” line of the Consolidated Statements of Income. Research and development expense was $47,082, $46,305 and $46,460 in 2010, 2009 and 2008, respectively. *(i) Cash and Cash Equivalents* All highly liquid investments with a maturity of three months or less at the time of purchase are considered to be cash equivalents. *(j) Accounts Receivable Valuation* Accounts receivable are stated at their net realizable value. The allowance for doubtful accounts reflects the Company’s best estimate of probable losses inherent in the accounts receivable portfolio determined on the basis of historical experience, aging of trade receivables, specific allowances for known troubled accounts and other currently available information. *(k) Inventory Valuation* Inventories are stated at the estimated lower of cost or market. Cost is determined by the first-in, first-out, or “FIFO,” method for inventories. Obsolete, damaged, and excess inventory is carried at the net realizable value, which is determined by 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. *(l) Property* Property is stated at historical cost and depreciation expense is computed using the straight-line method over the estimated useful lives of the assets. Machinery and equipment is depreciated over periods ranging from three to 25 years and buildings and building improvements over periods of up to 40 years. A change in the depreciable life is treated as a change in accounting estimate and the accelerated depreciation is accounted for in the period of change and future periods. Additions and improvements that substantially extend the useful life of a particular asset and interest costs incurred during the construction period of major properties are capitalized. Repairs and maintenance costs are expensed as incurred. Upon sale or disposition of an asset, the cost and related accumulated depreciation are removed from the accounts. Property is tested for recoverability whenever events or changes in circumstances indicate that its carrying value may not be recoverable. Such events include significant adverse changes in the business climate, several periods of operating or cash flow losses, forecasted continuing losses or a current expectation that an asset or an asset group will be disposed of before the end of its useful life. Recoverability of property is evaluated by a comparison of the carrying amount of an asset or asset group to future net undiscounted cash flows expected to be generated by the asset or asset group. If these comparisons indicate that an asset is not recoverable, the impairment loss recognized is the amount by which the carrying amount of the asset exceeds the estimated fair value. When an impairment loss is recognized for assets to be held and used, the adjusted carrying amount of those assets is depreciated over its remaining useful life. Restoration of a previously recognized impairment loss is not permitted under U.S. generally accepted accounting principles. *(m) Trademarks and Other Identifiable Intangible Assets* The primary identifiable intangible assets of the Company are trademarks, license agreements, customer and distributor relationships and computer software all of which have finite lives that are subject to amortization. The estimated useful life of a finite-lived intangible asset is based upon a number of factors, including the effects of demand, competition, expected changes in distribution channels and the level of maintenance expenditures required to obtain future cash flows. Finite-lived trademarks are being amortized over periods ranging from nine to 30 years, license agreements are being amortized over periods ranging from six to 15 years, customer and distributor relationships are being amortized over periods ranging from three to 10 years and computer software is being amortized over periods ranging from three to seven years. Identifiable intangible assets that are subject to amortization are evaluated for impairment using a process similar to that used in evaluating elements of property. The Company capitalizes internal software development costs, which include the actual costs to purchase software from vendors and generally include personnel and related costs for employees who were directly associated with the enhancement and implementation of purchased computer software. Additions to computer software are included in purchases of property and equipment in the Consolidated Statements of Cash Flows. *(n) Goodwill* Goodwill is the amount by which the purchase price exceeds the fair value of the assets acquired and liabilities assumed in a business combination. When a business combination is completed, the assets acquired and liabilities assumed are assigned to the reporting unit or units of the Company given responsibility for managing, controlling and generating returns on these assets and liabilities. In many instances, all of the acquired assets and assumed liabilities are assigned to a single reporting unit and in these cases all of the goodwill is assigned to the same reporting unit. In those situations in which the acquired assets and liabilities are allocated to more than one reporting unit, the goodwill to be assigned to each reporting unit is determined in a manner similar to how the amount of goodwill recognized in a business combination is determined. Goodwill is not amortized; however, it is assessed for impairment at least annually and as triggering events occur. The Company’s annual measurement date is the first day of the third fiscal quarter. The first step involves comparing the fair value of a reporting unit to its carrying value. If the carrying value of the reporting unit exceeds its fair value, the second step of the process involves comparing the implied fair value to the carrying value of the goodwill of that reporting unit. If the carrying value of the goodwill of a reporting unit exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to such excess. In evaluating the recoverability of goodwill, it is necessary to estimate the fair values of the reporting units. In making this assessment, management relies on a number of factors to discount anticipated future cash flows including operating results, business plans and present value techniques. Rates used to discount cash flows are dependent upon interest rates and the cost of capital at a point in time. There are inherent uncertainties related to these factors and management’s judgment in applying them to the analysis of goodwill impairment. *(o) Stock-Based Compensation* The Company established the Hanesbrands Inc. Omnibus Incentive Plan of 2006, (the “Hanesbrands OIP”) to award stock options, stock appreciation rights, restricted stock, restricted stock units, deferred stock units, performance shares and cash to its employees, non-employee directors and employees of its subsidiaries to promote the interests of the Company and incent performance and retention of employees. The Company recognizes the cost of employee services received in exchange for awards of equity instruments based upon the grant date fair value of those awards. *(p) Income Taxes* Deferred taxes are recognized for the future tax effects of temporary differences between financial and income tax reporting using tax rates in effect for the years in which the differences are expected to reverse. Given continuing losses in certain jurisdictions in which the Company operates on a separate return basis, a valuation allowance has been established for the deferred tax assets in these specific locations. The Company periodically estimates the probable tax obligations using historical experience in tax jurisdictions and informed judgment. There are inherent uncertainties related to the interpretation of tax regulations in the jurisdictions in which the Company transacts business. The judgments and estimates made at a point in time may change based on the outcome of tax audits, as well as changes to, or further interpretations of, regulations. Income tax expense is adjusted in the period in which these events occur, and these adjustments are included in the Company’s Consolidated Statements of Income. If such changes take place, there is a risk that the Company’s effective tax rate may increase or decrease in any period. A company must 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. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate resolution. *(q) Financial Instruments* The Company uses financial instruments, including forward exchange, option and swap contracts, to manage its exposures to movements in interest rates, foreign exchange rates and commodity prices. The use of these financial instruments modifies the exposure to these risks with the intent to reduce 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 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. The Company also formally assesses, both at inception and at least quarterly thereafter, whether the derivatives that are used in hedging transactions 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 “Selling, general and administrative expenses” line of the Consolidated Statements of Income. Derivatives are recorded in the Consolidated Balance Sheets at fair value in other assets and other liabilities. The fair value is based upon either market quotes for actively traded instruments or independent bids for nonexchange traded instruments. On the date the derivative is entered into, the Company designates the type of 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. Mark to Market Hedge 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. For derivatives designated as mark to market hedges, changes in fair value are reported in earnings in the “Selling, general and administrative expenses” line of the Consolidated Statements of Income. Forward exchange 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. Cash Flow Hedge 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 Consolidated Balance Sheets. When the hedged item affects the income statement, the gain or loss included in accumulated other comprehensive income (loss) is reported on the same line in the Consolidated Statements of Income as the hedged item. In addition, both the fair value of changes 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 Consolidated Statements of Income. *(r) Recently Issued 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 were effective for financial asset transfers occurring in 2010. The adoption of these new rules had no 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 were effective for the Company in 2010. The adoption of these new rules had no 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 were effective for the Company in the first quarter of 2010, 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 quarter of 2010 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 14.

Earnings Per Share

12 Months Ended

Jan. 01, 2011

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 period. 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 outstanding for 2010, 2009, and 2008 is as follows:


	Years Ended
	January 1,		January 2,		January 3,
	2011		2010		2009
Basic weighted average shares outstanding		96,500		95,158		94,171
Effect of potentially dilutive securities:
Stock options		783		—		100
Restricted stock units		489		510		882
Employee stock purchase plan and other		2		—		11

Diluted weighted average shares outstanding		97,774		95,668		95,164

Options to purchase 827, 6,273, and 3,735 shares of common stock and 250, 234, and 0 restricted stock units were excluded from the diluted earnings per share calculation because their effect would be anti-dilutive for 2010, 2009, and 2008, respectively.

Stock-Based Compensation

12 Months Ended

Jan. 01, 2011

Stock-Based Compensation [Abstract]

Stock-Based Compensation

(4) Stock-Based Compensation

The Company established the Hanesbrands OIP to award stock options, stock appreciation rights, restricted stock, restricted stock units, deferred stock units, performance shares and cash to its employees, non-employee directors and employees of its subsidiaries to promote the interests of the Company and incent performance and retention of employees.

Stock Options

The exercise price of each stock option equals the closing market price of Hanesbrands’ stock on the date of grant. Options granted to date generally vest ratably over two to three years, although stock options granted to employees after December 1, 2010 will generally not fully vest over a period of less than three years, and can generally be exercised over a term of 10 years. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model. The following table illustrates the assumptions for the Black-Scholes option-pricing model used in determining the fair value of options granted during 2010, 2009, and 2008, respectively.


	Years Ended
	January 1,			January 2,			January 3,
	2011			2010			2009
Dividend yield		—	%		—	%		—	%
Risk-free interest rate		1.64-1.90	%		2.49	%		1.68-2.64	%
Volatility		50-54	%		48	%		28-37	%
Expected term (years)		5.3-6.0			6.0			3.8-6.0

The dividend yield assumption is based on the Company’s current intent not to pay dividends. The Company uses a combination of the volatility of the Company and the volatility of peer companies for a period of time that is comparable to the expected life of the option to determine volatility assumptions due to the limited trading history of the Company’s common stock. The Company utilizes the simplified method outlined in SEC accounting rules to estimate expected lives for options granted. The simplified method is used for valuing stock option grants by eligible public companies that do not have sufficient historical exercise patterns on options granted to employees.

A summary of the changes in stock options outstanding to the Company’s employees under the Hanesbrands OIP is presented below:


								Weighted-
								Average
				Weighted-				Remaining
				Average		Aggregate		Contractual
				Exercise		Intrinsic		Term
	Shares			Price		Value		(Years)
Options outstanding at December 29, 2007		3,645		$	23.41	$	16,369		5.44
Granted		2,624			19.81
Exercised		(98	)		22.50
Forfeited		(142	)		23.35

Options outstanding at January 3, 2009		6,029		$	21.86	$	—		5.99
Granted		466			24.33
Exercised		(66	)		17.71
Forfeited		(142	)		21.32

Options outstanding at January 2, 2010		6,287		$	22.10	$	15,770		7.77
Granted		221			27.16
Exercised		(289	)		20.51
Forfeited		(1	)		22.37

Options outstanding at January 1, 2011		6,218		$	22.35	$	19,914		6.9

Options exercisable at January 1, 2011		4,824		$	22.46	$	14,741		6.52

During 2008, after consultation with its compensation consultants, the Compensation Committee of the Company’s Board of Directors (the “Compensation Committee”) determined to make decisions regarding 2009 compensation for executive officers at its meeting in December 2008, so that such decisions could be made prior to the January 1, 2009 effective date for any changes in total compensation opportunities rather than retroactively, and to approve equity grants simultaneously with those decisions. Regarding 2008 compensation, the Compensation Committee made decisions and approved equity grants at its meeting in January 2008. Therefore, two equity awards, including awards of stock options, were made to executive officers and other employees during 2008.

There were 2,133, 2,981 and 968 options that vested during 2010, 2009 and 2008, respectively. The total intrinsic value of options that were exercised during 2010, 2009 and 2008 was $1,923, $465 and $1,057, respectively. The weighted average fair value of individual options granted during 2010, 2009 and 2008 was $13.32, $11.80 and $6.29, respectively.

Cash received from option exercises under all share-based payment arrangements for 2010, 2009 and 2008 was $5,938, $1,179 and $2,191, respectively. The actual tax benefit realized for the tax deductions from option exercise of the share-based payment arrangements totaled $1,705, $465 and $806 for 2010, 2009 and 2008, respectively.

Stock Unit Awards

Restricted stock units (RSUs) of Hanesbrands’ stock are granted to certain Company employees and non-employee directors to incent performance and retention over periods ranging from one to three years, although RSUs granted to employees after December 1, 2010 will generally not fully vest over a period of less than three years. Upon vesting, the RSUs are converted into shares of the Company’s common stock on a one-for-one basis and issued to the grantees. Some RSUs which have been granted under the Hanesbrands OIP vest upon continued future service to the Company, while others also have a performance based vesting feature. The cost of these awards is determined using the fair value of the shares on the date of grant, and compensation expense is recognized over the period during which the grantees provide the requisite service to the Company. A summary of the changes in the restricted stock unit awards outstanding under the Hanesbrands OIP is presented below:


								Weighted-
								Average
				Weighted-				Remaining
				Average		Aggregate		Contractual
				Grant Date		Intrinsic		Term
	Shares			Fair Value		Value		(Years)
Nonvested share units outstanding at December 29, 2007		1,578		$	23.47	$	43,922		1.89
Granted – non-performance based		1,512			18.19
Vested		(583	)		23.28
Forfeited		(105	)		23.69

Nonvested share units outstanding at January 3, 2009		2,402		$	20.19	$	31,652		1.89
Granted – non-performance based		408			24.29
Vested		(1,193	)		20.84
Forfeited		(91	)		19.57

Nonvested share units outstanding at January 2, 2010		1,526		$	20.82	$	36,796		1.76
Granted – non-performance based		391			27.02
Granted – performance based		143			27.16
Vested		(721	)		21.28
Forfeited		(9	)		19.21

Nonvested share units outstanding at January 1, 2011		1,330		$	23.08	$	33,794		1.73

During 2008, after consultation with its compensation consultants, the Compensation Committee determined to make decisions regarding 2009 compensation for executive officers at its meeting in December 2008, so that such decisions could be made prior to the January 1, 2009 effective date for any changes in total compensation opportunities rather than retroactively, and to approve equity grants simultaneously with those decisions. Regarding 2008 compensation, the Compensation Committee made decisions and approved equity grants at its meeting in January 2008. Therefore, two equity awards, including awards of restricted stock units, were made to executive officers and other employees during 2008.

The total fair value of shares vested during 2010, 2009 and 2008 was $15,346, $24,871 and $13,560, respectively. Certain participants elected to defer receipt of shares earned upon vesting. As of January 1, 2011, a total of 203 shares of common stock are issuable in future years for such deferrals.

For all share-based payments under the Hanesbrands OIP, during 2010, 2009 and 2008, the Company recognized total compensation expense of $19,226, $37,391 and $31,002 and recognized a deferred tax benefit of $7,435, $14,464 and $11,585, respectively. During 2009, the Company incurred $1,814 related to amending the terms of all outstanding stock options granted under the Hanesbrands OIP that had an original term of five or seven years to the tenth anniversary of the original grant date.

At January 1, 2011, there was $10,135 of total unrecognized compensation cost related to non-vested stock-based compensation arrangements, of which $7,276, $2,237 and $622 is expected to be recognized in 2011, 2012 and 2013, respectively. The Company satisfies the requirement for common shares for share-based payments to employees pursuant to the Hanesbrands OIP by issuing newly authorized shares. The Hanesbrands OIP authorized 13,105 shares for awards of stock options and restricted stock units, of which 1,945 were available for future grants as of January 1, 2011.

In 2010, in addition to granting RSUs that vest solely upon continued future service to the Company, the Company also granted 143 performance-based restricted stock units with a performance feature that has a target range of 0% to 200% based upon meeting certain performance thresholds. These performance stock awards, which are included in the table above, represent unearned awards that are earned based on future performance and service.

Employee Stock Purchase Plan

The Company established the Hanesbrands Inc. Employee Stock Purchase Plan of 2006 (the “ESPP”), which is qualified under Section 423 of the Internal Revenue Code. An aggregate of up to 2,442 shares of Hanesbrands common stock may be purchased by eligible employees pursuant to the ESPP. The purchase price for shares under the ESPP is equal to 85% of the stock’s fair market value on the purchase date. During 2010, 2009 and 2008, 79, 156 and 129 shares, respectively, were purchased under the ESPP by eligible employees. The Company had 2,000 shares of common stock available for issuance under the ESPP as of January 1, 2011. The Company recognized $308, $306 and $447 of stock compensation expense under the ESPP during 2010, 2009 and 2008, respectively.

Trade Accounts Receivable

12 Months Ended

Jan. 01, 2011

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 are as follows:


				Allowance for
	Allowance for			Chargebacks
	Doubtful			and Other
	Accounts			Deductions			Total
Balance at December 29, 2007	$	9,328		$	22,314		$	31,642
Charged to expenses		8,074			5,366			13,440
Deductions and write-offs		(4,847	)		(18,338	)		(23,185	)

Balance at January 3, 2009		12,555			9,342			21,897

Charged to expenses		3,647			5,724			9,371
Deductions and write-offs		(700	)		(4,792	)		(5,492	)

Balance at January 2, 2010		15,502			10,274			25,776

Charged to expenses		(1,116	)		3,715			2,599
Deductions and write-offs		(3,270	)		(5,913	)		(9,183	)

Balance at January 1, 2011	$	11,116		$	8,076		$	19,192

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 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

The Company has entered into agreements to sell selected trade accounts receivable to financial institutions. After the sale, the Company does not retain any interests in the receivables and the applicable financial institution services and collects these accounts receivable directly from the customer. Net proceeds of these accounts receivable sale programs are recognized in the Consolidated Statements of Cash Flows as part of operating cash flows. The Company recognized funding fees of $3,464 and $163 in 2010 and 2009, respectively, for sales of accounts receivable to financial institutions in the “Other expenses” line in the Consolidated Statements of Income.

Inventories

12 Months Ended

Jan. 01, 2011

Inventories [Abstract]

Inventories

(6) Inventories

Inventories consisted of the following:


	January 1,		January 2,
	2011		2010
Raw materials	$	155,744	$	106,138
Work in process		109,304		100,686
Finished goods		1,057,671		842,380

	$	1,322,719	$	1,049,204

Property, Net

12 Months Ended

Jan. 01, 2011

Property, Net [Abstract]

Property, Net

(7) Property, Net

Property is summarized as follows:


	January 1,		January 2,
	2011		2010
Land	$	26,122	$	28,544
Buildings and improvements		467,378		478,148
Machinery and equipment		868,995		895,336
Construction in progress		31,904		28,973
Capital leases		6,988		4,018

		1,401,387		1,435,019
Less accumulated depreciation		770,133		832,193

Property, net	$	631,254	$	602,826

Notes Payable

12 Months Ended

Jan. 01, 2011

Notes Payable [Abstract]

Notes Payable

(8) Notes Payable

The Company had the following short-term obligations at January 1, 2011 and January 2, 2010:


				Principal Amount
	Interest Rate as of			January 1,		January 2,
	January 1, 2011			2011		2010
Short-term revolving facility in El Salvador		4.20	%	$	29,700	$	30,000
Short-term revolving facility in China		7.65	%		12,941		7,397
Short-term revolving facility in Vietnam		5.05	%		3,371		—
Short-term revolving facility in Japan		4.61	%		2,459		—
Short-term revolving facility in India		12.80	%		1,846		—
Short-term revolving facility in Brazil		13.56	%		361		—
Short-term revolving facility in Luxembourg		—			—		25,000
Short-term revolving facility in Thailand		—			—		4,284

				$	50,678	$	66,681

The Company has a short-term revolving facility arrangement with a Salvadoran branch of a Canadian bank amounting to $30,000 of which $29,700 was outstanding at January 1, 2011 which accrues interest at 4.20%.

The Company has a short-term revolving facility arrangement with a Chinese branch of a U.S. bank amounting to RMB 155 million ($23,460) of which $12,941 was outstanding at January 1, 2011 which accrues interest at 7.65%. Borrowings under the facility accrue interest at the prevailing base lending rates published by the People’s Bank of China from time to time plus 50%.

The Company has a short-term revolving facility arrangement with a Vietnamese branch of a U.S. bank amounting to $14,000 of which $3,371 was outstanding at January 1, 2011 which accrues interest at 5.05%.

The Company has a short-term revolving facility arrangement with a Japanese branch of a U.S. bank amounting to JPY 800 million ($9,812) of which $2,459 was outstanding at January 1, 2011 which accrues interest at 4.61%.

The Company has a short-term revolving facility arrangement with an Indian branch of a U.S. bank amounting to INR 100 million ($2,224) of which $1,846 was outstanding at January 1, 2011 which accrues interest at 12.80%.

The Company has a short-term revolving facility arrangement with a Brazilian bank amounting to BRL 2 million ($1,205) of which $361 was outstanding at January 1, 2011 which accrues interest at 13.56%.

In addition, the Company has short-term revolving credit facilities in various other locations that can be drawn on from time to time amounting to $4,646 of which $0 was outstanding at January 1, 2011.

As of January 1, 2011 and January 2, 2010, the Company had total borrowing availability of $34,669 and $34,935, respectively, under these international loan facilities.

The Company was in compliance with the financial covenants contained in each of these facilities at January 1, 2011.

Total interest paid on notes payable was $2,267, $3,974 and $2,208 in 2010, 2009 and 2008, respectively.

Debt

12 Months Ended

Jan. 01, 2011

Debt [Abstract]

Debt

(9) Debt

The Company had the following debt at January 1, 2011 and January 2, 2010:


				Principal Amount
	Interest Rate as of			January 1,		January 2,
	January 1, 2011			2011		2010		Maturity Date
2009 Senior Secured Credit Facility:
Term Loan Facility				$	—	$	750,000
Revolving Loan Facility		6.75	%		—		51,500	December 2013
6.375% Senior Notes		6.38	%		1,000,000		—	December 2020
8% Senior Notes		8.00	%		500,000		500,000	December 2016
Floating Rate Senior Notes		3.83	%		490,735		490,735	December 2014
Accounts Receivable Securitization Facility		2.81	%		90,000		100,000	March 2011

					2,080,735		1,892,235
Less current maturities					90,000		164,688

				$	1,990,735	$	1,727,547

The Company’s primary financing arrangements are the senior secured credit facility that it entered into in 2006 (the “2006 Senior Secured Credit Facility”) and amended and restated in December 2009 to provide for a new senior secured credit facility (the “2009 Senior Secured Credit Facility”), $500,000 in aggregate principle amount of floating rate senior notes (the “Floating Rate Senior Notes”) issued in December 2006, $500,000 in aggregate principal amount of 8.000% senior notes (the “8% Senior Notes”) issued in December 2009, $1,000,000 in aggregate principal amount of 6.375% senior notes (the “6.375% Senior Notes”) issued in November 2010 and the Accounts Receivable Securitization Facility. The outstanding balances at January 1, 2011 are reported in the “Long-term debt” and “Current portion of debt” lines of the Consolidated Balance Sheets.

Total cash paid for interest related to debt in 2010, 2009 and 2008 was $116,492, $161,854 and $150,898, respectively.

2009 Senior Secured Credit Facility

The 2009 Senior Secured Credit Facility initially provides for aggregate borrowings of $1,150,000, consisting of a $750,000 term loan facility (the “Term Loan Facility”) and a $400,000 revolving loan facility (the “Revolving Loan Facility”). The proceeds of the Term Loan Facility were used to refinance all amounts outstanding under the Term A loan facility (in an initial principal amount of $250,000) and Term B loan facility (in an initial principal amount of $1,400,000) under the 2006 Senior Secured Credit Facility and to repay all amounts outstanding under the second lien credit facility that the Company entered into in 2006 (the “Second Lien Credit Facility”). Proceeds of the Revolving Loan Facility were used to pay fees and expenses in connection with these transactions, and are used for general corporate purposes and working capital needs.

A portion of the Revolving Loan Facility is available for the issuances of letters of credit and the making of swingline loans, and any such issuance of letters of credit or making of a swingline loan will reduce the amount available under the Revolving Loan Facility. At the Company’s option, it may 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 described below. In order to support its working capital needs and fund the acquisition of GearCo, Inc., known as Gear for Sports, in September 2010, the Company increased the commitments under the Revolving Loan Facility from $400,000 to $600,000. In November 2010, the Company used proceeds from the issuance of the 6.375% Senior Notes to repay all outstanding borrowings under the Term Loan Facility and to reduce the outstanding borrowings under the Revolving Loan Facility. As of January 1, 2011, the Company had $0 outstanding under the Revolving Loan Facility, $12,305 of standby and trade letters of credit issued and outstanding under this facility and $587,695 of borrowing availability. At January 1, 2011, the interest rate on the Revolving Loan Facility was 6.75%.

The 2009 Senior Secured Credit Facility is guaranteed by substantially all of the Company’s existing and future direct and indirect U.S. subsidiaries, with certain customary or agreed-upon exceptions for certain subsidiaries. The Company and each of the guarantors under the 2009 Senior Secured Credit Facility have granted the lenders under the 2009 Senior Secured Credit Facility a valid and perfected first priority (subject to certain customary exceptions) lien and security interest in the following:

•

the equity interests of substantially all of the Company’s direct and indirect U.S. subsidiaries and 65% of the voting securities of certain first tier foreign subsidiaries; and

•

substantially all present and future property and assets, real and personal, tangible and intangible, of the Company and each guarantor, except for certain enumerated interests, and all proceeds and products of such property and assets.

The Revolving Loan Facility matures on December 10, 2013. All borrowings under the Revolving Loan Facility must be repaid in full upon maturity. Outstanding borrowings under the 2009 Senior Secured Credit Facility are prepayable without penalty.

At the Company’s option, borrowings under the 2009 Senior Secured Credit Facility may be maintained from time to time as (a) Base Rate loans, which shall bear interest at the highest of (i) 1/2 of 1% in excess of the federal funds rate, (ii) the rate publicly announced by JPMorgan Chase Bank as its “prime rate” at its principal office in New York City, in effect from time to time and (iii) the LIBO Rate (as defined in the 2009 Senior Secured Credit Facility and adjusted for maximum reserves) for LIBOR-based loans with a one-month interest period plus 1.0%, in effect from time to time, in each case plus the applicable margin, or (b) LIBOR-based loans, which shall bear interest at the higher of (i) LIBO Rate (as defined in the 2009 Senior Secured Credit Facility and adjusted for maximum reserves), as determined by reference to the rate for deposits in dollars appearing on the Reuters Screen LIBOR01 Page for the respective interest period or other commercially available source designated by the administrative agent, and (ii) 2.00%, plus the applicable margin in effect from time to time. The applicable margin is determined by reference to a leverage-based pricing grid set forth in the 2009 Senior Secured Credit Facility. The applicable margin ranges from a maximum of 4.75% in the case of LIBOR-based loans and 3.75% in the case of Base Rate loans if the Company’s leverage ratio is greater than or equal to 4.00 to 1, and will step down in 0.25% increments to a minimum of 4.00% in the case of LIBOR-based loans and 3.00% in the case of Base Rate loans if the Company’s leverage ratio is less than 2.50 to 1.

The 2009 Senior Secured Credit Facility requires the Company to comply with customary affirmative, negative and financial covenants. The 2009 Senior Secured Credit Facility requires that the Company maintain a minimum interest coverage ratio and a maximum total debt to EBITDA (earnings before income taxes, depreciation expense and amortization, as computed pursuant to the 2009 Senior Secured Credit Facility), or leverage ratio. The interest coverage ratio covenant requires that the ratio of the Company’s EBITDA for the preceding four fiscal quarters to its consolidated total interest expense for such period shall not be less than a specified ratio for each fiscal quarter beginning with the fourth fiscal quarter of 2009. This ratio was 2.50 to 1 for the fourth fiscal quarter of 2009 and increases over time until it reaches 3.25 to 1 for the third fiscal quarter of 2011 and thereafter. The leverage ratio covenant requires that the ratio of the Company’s total debt to EBITDA for the preceding four fiscal quarters will not be more than a specified ratio for each fiscal quarter beginning with the fourth fiscal quarter of 2009. This ratio was 4.50 to 1 for the fourth fiscal quarter of 2009 and declines over time until it reaches 3.75 to 1 for the second fiscal quarter of 2011 and thereafter. The method of calculating all of the components used in the covenants is included in the 2009 Senior Secured Credit Facility.

The 2009 Senior Secured Credit Facility contains customary events of default, including nonpayment of principal when due; nonpayment of interest, fees or other amounts after stated grace period; material inaccuracy of representations and warranties; violations of covenants; certain bankruptcies and liquidations; any cross-default to material indebtedness; certain material judgments; certain events related to the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), actual or asserted invalidity of any guarantee, security document or subordination provision or non-perfection of security interest, and a change in control (as defined in the 2009 Senior Secured Credit Facility). As of January 1, 2011, the Company was in compliance with all financial covenants.

6.375% Senior Notes

On November 9, 2010, the Company issued $1,000,000 aggregate principal amount of the 6.375% Senior Notes. The 6.375% Senior Notes are senior unsecured obligations that rank equal in right of payment with all of the Company’s existing and future unsubordinated indebtedness. The 6.375% Senior Notes bear interest at an annual rate equal to 6.375%. Interest is payable on the 6.375% Senior Notes on June 15 and December 15 of each year. The 6.375% Senior Notes will mature on December 15, 2020. The net proceeds from the sale of the 6.375% Senior Notes were approximately $979,000. As noted above, these proceeds were used to repay all outstanding borrowings under the Term Loan Facility and reduce the outstanding borrowings under the Revolving Loan Facility and to pay fees and expenses relating to these transactions. The 6.375% Senior Notes are guaranteed by substantially all of the Company’s domestic subsidiaries.

The Company may redeem some or all of the notes prior to December 15, 2015 at a redemption price equal to 100% of the principal amount of the 6.375% Senior Notes redeemed plus an applicable premium. The Company may redeem some or all of the 6.375% Senior Notes at any time on or after December 15, 2015 at a redemption price equal to the principal amount of the 6.375% Senior Notes plus a premium of 3.188% if redeemed during the 12-month period commencing on December 15, 2015, 2.125% if redeemed during the 12-month period commencing on December 15, 2016, 1.062% if redeemed during the 12-month period commencing on December 15, 2017 and no premium if redeemed after December 15, 2018, as well as any accrued and unpaid interest as of the redemption date. In addition, at any time prior to December 15, 2013, the Company may redeem up to 35% of the aggregate principal amount of the 6.375% Senior Notes at a redemption price of 106.375% of the principal amount of the 6.375% Senior Notes redeemed with the net cash proceeds of certain equity offerings.

The indenture governing the 6.375% Senior Notes contains customary events of default which include (subject in certain cases to customary grace and cure periods), among others, nonpayment of principal or interest; breach of other agreements in such indenture; failure to pay certain other indebtedness; failure to pay certain final judgments; failure of certain guarantees to be enforceable; and certain events of bankruptcy or insolvency.

8% Senior Notes

On December 10, 2009, the Company issued $500,000 aggregate principal amount of the 8% Senior Notes. The 8% Senior Notes are senior unsecured obligations that rank equal in right of payment with all of the Company’s existing and future unsubordinated indebtedness. The 8% Senior Notes bear interest at an annual rate equal to 8%. Interest is payable on the 8% Senior Notes on June 15 and December 15 of each year. The 8% Senior Notes will mature on December 15, 2016. The net proceeds from the sale of the 8% Senior Notes were approximately $480,000. As noted above, these proceeds, together with the proceeds from borrowings under the 2009 Senior Secured Credit Facility, were used to refinance borrowings under the 2006 Senior Secured Credit Facility, to repay all borrowings under the Second Lien Credit Facility and to pay fees and expenses relating to these transactions. The 8% Senior Notes are guaranteed by substantially all of the Company’s domestic subsidiaries.

The Company may redeem some or all of the notes prior to December 15, 2013 at a redemption price equal to 100% of the principal amount of 8% Senior Notes redeemed plus an applicable premium. The Company may redeem some or all of the 8% Senior Notes at any time on or after December 15, 2013 at a redemption price equal to the principal amount of the 8% Senior Notes plus a premium of 4% if redeemed during the 12-month period commencing on December 15, 2013, 2% if redeemed during the 12-month period commencing on December 15, 2014 and no premium if redeemed after December 15, 2015, as well as any accrued and unpaid interest as of the redemption date. In addition, at any time prior to December 15, 2012, the Company may redeem up to 35% of the aggregate principal amount of the 8% Senior Notes at a redemption price of 108% of the principal amount of the 8% Senior Notes redeemed with the net cash proceeds of certain equity offerings.

The indenture governing the 8% Senior Notes contains customary events of default which include (subject in certain cases to customary grace and cure periods), among others, nonpayment of principal or interest; breach of other agreements in such indenture; failure to pay certain other indebtedness; failure to pay certain final judgments; failure of certain guarantees to be enforceable; and certain events of bankruptcy or insolvency.

Floating Rate Senior Notes

On December 14, 2006, the Company issued $500,000 aggregate principal amount of the Floating Rate Senior Notes. The Floating Rate Senior Notes are senior unsecured obligations that rank equal in right of payment with all of the Company’s existing and future unsubordinated indebtedness. The Floating Rate Senior Notes bear interest at an annual rate, reset semi-annually, equal to the London Interbank Offered Rate, or LIBOR, plus 3.375%. Interest is payable on the Floating Rate Senior Notes on June 15 and December 15 of each year. The Floating Rate Senior Notes will mature on December 15, 2014. The net proceeds from the sale of the Floating Rate Senior Notes were approximately $492,000. These proceeds, together with working capital, were used to repay in full the $500,000 outstanding under the Bridge Loan Facility. The Floating Rate Senior Notes are guaranteed by substantially all of the Company’s domestic subsidiaries. The Company may redeem some or all of the Floating Rate Senior Notes at any time on or after December 15, 2008 at a redemption price equal to the principal amount of the Floating Rate Senior Notes plus a premium of 2% if redeemed during the 12-month period commencing on December 15, 2008, 1% if redeemed during the 12-month period commencing on December 15, 2009 and no premium if redeemed after December 15, 2010, as well as any accrued and unpaid interest as of the redemption date.

The indenture governing the Floating Rate Senior Notes contains customary events of default which include (subject in certain cases to customary grace and cure periods), among others, nonpayment of principal or interest; breach of other agreements in such indenture; failure to pay certain other indebtedness; failure to pay certain final judgments; failure of certain guarantees to be enforceable; and certain events of bankruptcy or insolvency.

The Company repurchased $2,945 of the Floating Rate Senior Notes for $2,788 resulting in a gain of $157 in 2009. The Company repurchased $6,320 of the Floating Rate Senior Notes for $4,354 resulting in a gain of $1,966 in 2008.

Accounts Receivable Securitization Facility

On November 27, 2007, the Company entered into the Accounts Receivable Securitization Facility, which the Company subsequently amended several times. The description of the Accounts Receivable Securitization Facility below gives effect to all amendments to date. The Accounts Receivable Securitization Facility initially provided for up to $250,000 in funding accounted for as a secured borrowing, limited to the availability of eligible receivables, and is secured by certain domestic trade receivables. Effective February 2010, the Company elected to reduce the amount of funding available under the Accounts Receivable Securitization Facility from $250,000 to $150,000. Under the terms of the Accounts Receivable Securitization Facility, the Company and certain of its subsidiaries sell, on a revolving basis, certain domestic trade receivables to HBI Receivables LLC (“Receivables LLC”), a wholly-owned bankruptcy-remote subsidiary that in turn uses the trade receivables to secure the borrowings, which are funded through conduits that issue commercial paper in the short-term market and are not affiliated with the Company or through committed bank purchasers if the conduits fail to fund. The assets and liabilities of Receivables LLC are fully reflected on the Consolidated Balance Sheet, and the securitization is treated as a secured borrowing for accounting purposes. The borrowings under the Accounts Receivable Securitization Facility remain outstanding throughout the term of the agreement subject to the Company maintaining sufficient eligible receivables, by continuing to sell trade receivables to Receivables LLC, unless an event of default occurs. Unless the term is extended, the Accounts Receivable Securitization Facility will terminate on March 31, 2011.

Availability of funding under the Accounts Receivable Securitization Facility depends primarily upon the eligible outstanding receivables balance. As of January 1, 2011, the Company had $90 million outstanding under the Accounts Receivable Securitization Facility. The outstanding balance under the Accounts Receivable Securitization Facility is reported on the Consolidated Balance Sheet in the line “Current portion of debt.” Unless the conduits fail to fund, the yield on the commercial paper, which is the conduits’ cost to issue the commercial paper plus certain dealer fees, is considered a financing cost and is included in interest expense on the Consolidated Statement of Income. If the conduits fail to fund, the Accounts Receivable Securitization Facility would be funded through committed bank purchasers, and the interest rate payable at the Company’s option at the rate announced from time to time by HSBC Bank USA, N.A. as its prime rate or at the LIBO Rate (as defined in the Accounts Receivable Securitization Facility) plus the applicable margin in effect from time to time. In addition, Receivables LLC is required to make certain payments to a conduit purchaser, a committed purchaser, or certain entities that provide funding to or are affiliated with them, in the event that assets and liabilities of a conduit purchaser are consolidated for financial and/or regulatory accounting purposes with certain other entities. The average blended interest rate for the outstanding balance as of January 1, 2011 was 2.81%.

The Accounts Receivable Securitization Facility contains customary events of default and requires the Company to maintain the same interest coverage ratio and leverage ratio contained from time to time in the 2009 Senior Secured Credit Facility, provided that any changes to such covenants will only be applicable for purposes of the Accounts Receivable Securitization Facility if approved by the Managing Agents or their affiliates. As of January 1, 2011, the Company was in compliance with all financial covenants.

The total amount of receivables used as collateral for the credit facility was $305,978 at January 1, 2011 and is reported on the Company’s Consolidated Balance Sheet in trade accounts receivable less allowances.

Future Principal Payments

Future principal payments for all of the facilities described above are as follows: $90,000 due in 2011, $0 due in 2012, $0 due in 2013, $490,735 due in 2014, $0 due in 2015 and $1,500,000 thereafter.

Debt Issuance Costs

The Company incurred $23,833 in capitalized debt issuance costs in connection with increasing the borrowing availability under the Revolving Loan Facility and issuing the 6.375% Senior Notes in 2010. In 2009, the Company incurred $54,342 in capitalized debt issuance costs in connection with entering into the 2009 Senior Secured Credit Facility and the amendments to the 2006 Senior Secured Credit Facility and the Accounts Receivable Securitization Facility. The Company incurred $69 in debt issuance costs in connection with entering into the amendments to the 2006 Senior Secured Credit Facility and the Accounts Receivable Securitization Facility in 2008. Debt issuance costs are amortized to interest expense over the respective lives of the debt instruments, which range from one to ten years. As of January 1, 2011, the net carrying value of unamortized debt issuance costs was $60,296 which is included in other noncurrent assets in the Consolidated Balance Sheet. The Company’s debt issuance cost amortization was $12,739, $10,967 and $6,032 in 2010, 2009 and 2008, respectively.

In 2010, the Company recognized charges of $14,186 in the “Other expenses” line of the Consolidated Statements of Income, which represents certain costs related to the issuance of the 6.375% Senior Notes. The Company recognized $1,654 of a write-off on early extinguishment of debt in 2010 related to the prepayment of $57,188 on the 2009 Senior Secured Credit Facility and $686 of write-off on early extinguishment of debt on the Accounts Receivable Securitization Facility as a result of the reduction in borrowing capacity. The Company also recognized $231 in additional charges in 2010 related to the amendments of credit facilities in 2009.

In 2009, the Company recognized charges of $20,634 in the “Other expenses” line of the Consolidated Statements of Income, which represents certain costs related to entering into the 2009 Senior Secured Credit Facility and the amendments to the 2006 Senior Secured Credit Facility and the Accounts Receivable Securitization Facility. The Company recognized $2,423 of losses on early extinguishment of debt in 2009 related to the prepayment of $140,250 on the 2006 Senior Secured Credit Facility. The Company recognized $1,332 of losses on early extinguishment of debt in 2008 which was comprised of a loss of $1,269 related to the prepayment of $125,000 on the 2006 Senior Secured Credit Facility and $63 related to the repurchase of $6,320 of Floating Rate Senior Notes.

Commitments and Contingencies	12 Months Ended
Commitments and Contingencies	Jan. 01, 2011
Commitments and Contingencies [Abstract]
Commitments and Contingencies	(11) Commitments and Contingencies The Company is a party to various pending legal proceedings, claims and environmental actions by government agencies. In accordance with the accounting rules for contingencies, the Company records a provision with respect to a claim, suit, investigation, or proceeding when it is probable that a liability has been incurred and the amount of the loss can reasonably be estimated. Any provisions are reviewed at least quarterly and are adjusted to reflect the impact and status of settlements, rulings, advice of counsel and other information pertinent to the particular matter. The recorded liabilities for these items were not material to the consolidated financial statements of the Company in any of the years presented. Although the outcome of such items cannot be determined with certainty, the Company’s legal counsel and management are of the opinion that the final outcome of these matters will not have a material adverse impact on the consolidated financial position, results of operations or liquidity. *Operating Leases* The Company leases certain buildings and equipment under agreements that are classified as operating leases. Rental expense under operating leases was $65,575, $63,759 and $53,072 in 2010, 2009 and 2008, respectively. Future minimum lease payments under noncancelable operating leases (with initial or remaining lease terms in excess of one year) are as follows: $52,220 in 2011, $43,737 in 2012, $34,304 in 2013, $29,889 in 2014, $26,810 in 2015 and $81,938 thereafter. During 2010, the Company entered into sale-leaseback transactions involving four distribution facilities. The facilities are being leased back over terms ranging from three years to twelve years and are classified as operating leases. The Company received net proceeds on the sales of $41,282, resulting in deferred gains of $15,441 which will be amortized over the lease terms. During 2009, the Company entered into a sale-leaseback transaction involving a manufacturing facility. The facility is being leased back over 22 months and is classified as an operating lease. The Company received net proceeds on the sale of $2,517, resulting in a deferred gain of $348 which will be amortized over the lease term. During 2008, the Company entered into sale-leaseback transactions involving two distribution centers and one manufacturing facility. The facilities are being leased back over terms ranging from one to four years and are classified as operating leases. The Company received net proceeds on the sales of $18,782, resulting in deferred gains of $6,317 which will be amortized over the lease terms. *License Agreements* The Company is party to several royalty-bearing license agreements for use of third-party trademarks in certain of their products. The license agreements typically require a minimum guarantee to be paid either at the commencement of the agreement, by a designated date during the term of the agreement or by the end of the agreement period. When payments are made in advance of when they are due, the Company records a prepayment and amortizes the expense in the “Cost of sales” line of the Consolidated Statements of Income uniformly over the guaranteed period. For guarantees required to be paid at the completion of the agreement, royalties are expensed through “Cost of sales” as the related sales are made. Management has reviewed all license agreements and has concluded that there are no liabilities recorded at inception of the agreements. During 2010, 2009 and 2008, the Company incurred royalty expense of approximately $12,772, $11,105 and $11,709, respectively. Minimum amounts due under the license agreements are approximately $3,796 in 2011, $8,852 in 2012, $8,114 in 2013, $8,086 in 2014 and $8,422 in 2015. In addition to the minimum guaranteed amounts under license agreements, the Company is a party to a partnership agreement which includes a minimum fee of $5,622 for each year from 2011 through 2017.

Intangible Assets And Goodwill

12 Months Ended

Jan. 01, 2011

Intangible Assets and Goodwill Abstract

Intangible Assets and Goodwill

(12) Intangible Assets and Goodwill

During 2010, the Company completed the business acquisition of Gear for Sports. The acquisition resulted in the recognition of $108,142 of goodwill and $52,700 of intangible assets, which consisted primarily of college and pro sports license agreements and customer and distributor relationships.

During 2008, the Company completed two business acquisitions: a sewing operation in Thailand and an embroidery and screen-printing production operation in Honduras, that resulted in the recognition of goodwill of $3,665 and $3,797, respectively.

None of the preceding business acquisitions were determined by the Company to be material, individually or in the aggregate. As a result, the disclosures and supplemental pro forma information required by ASC805, “Business Combinations,” are not presented.

(a) Intangible Assets

The primary components of the Company’s intangible assets and the related accumulated amortization are as follows:


			Accumulated		Net Book
	Gross		Amortization		Value
Year ended January 1, 2011:
Intangible assets subject to amortization:
Trademarks and brand names	$	195,538	$	85,175	$	110,363
Licensing agreements		47,600		585		47,015
Customer and distributor relationships		3,200		96		3,104
Computer software		58,494		42,230		16,264
Other intangibles		1,900		24		1,876

	$	306,732	$	128,110

Net book value of intangible assets					$	178,622


			Accumulated		Net Book
	Gross		Amortization		Value
Year ended January 2, 2010:
Intangible assets subject to amortization:
Trademarks and brand names	$	192,440	$	77,146	$	115,294
Computer software		56,356		35,436		20,920

	$	248,796	$	112,582

Net book value of intangible assets					$	136,214

The amortization expense for intangibles subject to amortization was $12,509, $12,443 and $12,019 for 2010, 2009 and 2008, respectively. The estimated amortization expense for the next five years, assuming no change in the estimated useful lives of identifiable intangible assets or changes in foreign exchange rates is as follows: $13,755 in 2011, $13,473 in 2012, $12,996 in 2013, $12,105 in 2014 and $9,632 in 2015. There was no impairment of trademarks in any of the periods presented.

(b) Goodwill

Goodwill and the changes in those amounts during the period are as follows:


	Innerwear		Outerwear			Hosiery		Direct to Consumer		International		Total
Net book value at January 3, 2009	$	219,729	$	63,814		$	25,173	$	255	$	13,031	$	322,002

Net book value at January 2, 2010		219,729		63,814			25,173		255		13,031		322,002
Acquisition of business		—		108,142			—		—		—		108,142
Other		603		(603	)		—		—		—		—

Net book value at January 1, 2011	$	220,332	$	171,353		$	25,173	$	255	$	13,031	$	430,144

There has been no impairment of goodwill.

- Definition

Discloses the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain or loss on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss. This element may be used as a single block of text to include the entire intangible asset disclosure including data and tables.

+ References+ Details

Financial Instruments and Risk Management

12 Months Ended

Jan. 01, 2011

Financial Instruments and Risk Management [Abstract]

Financial Instruments and Risk Management

(13) 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 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 Consolidated Statements of Cash Flows as cash flow from operating activities. The table below summarizes 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 using the exchange rate at the reporting date as of January 1, 2011 and January 2, 2010.


	January 1,			January 2,
	2011			2010
Foreign currency bought (sold):
Canadian dollar	$	(8,327	)	$	(3,420	)
Japanese yen		(2,167	)		(863	)
European euro		—			(2,650	)
European euro		—			1,732
Mexican peso		(29,267	)		(38,028	)
Mexican peso		—			14,061

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 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 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 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 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 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 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. The table below summarizes the U.S. dollar equivalent of commitments to purchase and sell foreign currencies in the Company’s foreign currency cash flow hedge derivative portfolio using the exchange rate at the reporting date as of January 1, 2011 and January 2, 2010.


	January 1,			January 2,
	2011			2010
Foreign currency bought (sold):
Canadian dollar	$	(43,778	)	$	(32,955	)
Japanese yen		(11,681	)		(12,526	)
European euro		(28,180	)		—
Mexican peso		(10,147	)		(16,307	)

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. The Company is able to lock in the cost of cotton reflected in the price it pays for yarn from its primary yarn suppliers in an attempt to protect the business from the volatility of the market price of cotton. In addition, 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 Consolidated Statements of Cash Flows as cash flow from operating activities. There were no amounts outstanding under cotton futures or cotton option contracts at January 1, 2011 and January 2, 2010.

Fair Values of Derivative Instruments

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


		Fair Value
		January 1,			January 2,
	Balance Sheet Location	2011			2010
Derivative assets — hedges
Interest rate contracts	Other noncurrent assets	$	3		$	—
Foreign exchange contracts	Other current assets		408			407

Total derivative assets — hedges			411			407

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

Total derivative assets		$	411		$	614

Derivative liabilities — hedges
Foreign exchange contracts	Accrued liabilities	$	(874	)	$	(107	)

Total derivative liabilities — hedges			(874	)		(107	)

Derivative liabilities — non-hedges
Foreign exchange contracts	Accrued liabilities		(471	)		(432	)

Total derivative liabilities		$	(1,345	)	$	(539	)

Net derivative asset (liability)		$	(934	)	$	75

Net Derivative Gain or Loss

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


	Amount of Gain (Loss) Recognized in
	Accumulated Other Comprehensive Loss
	(Effective Portion)
	Year Ended
	January 1,			January 2,			January 3,
	2011			2010			2009
Interest rate contracts	$	(516	)	$	20,559		$	(66,088	)
Foreign exchange contracts		(2,180	)		(1,560	)		756
Commodity contracts		—			—			(208	)

Total	$	(2,696	)	$	18,999		$	(65,540	)


	Amount of Gain (Loss) Reclassified from
	Accumulated Other Comprehensive Loss into									Location of Gain (Loss)
	Income (Effective Portion)									Reclassified from
	Year Ended									Accumulated Other
	January 1,			January 2,			January 3,			Comprehensive Loss into
	2011			2010			2009			Income (Effective Portion)
Interest rate contracts	$	(17,964	)	$	(1,820	)	$	(1,176	)	Interest expense, net
Interest rate contracts		—			(26,029	)		—		Other income (expense)
Foreign exchange contracts		(1,715	)		721			(2,025	)	Cost of sales
Commodity contracts		—			(95	)		473		Cost of sales

Total	$	(19,679	)	$	(27,223	)	$	(2,728	)

The Company expects to reclassify into earnings during the next 12 months a net loss from Accumulated Other Comprehensive Loss of approximately $10,171.

As disclosed in Note 9, in connection with the amendment and restatement of the 2006 Senior Secured Credit Facility and repayment of the Second Lien Credit Facility in December 2009, all outstanding interest rate hedging instruments which were hedging these underlying debt instruments along with the interest rate hedge instrument related to the Floating Rate Senior Notes were settled for $62,256, of which $40,391 was paid in December 2009 and the remaining $21,865 was included in the “Accounts Payable” line of the Consolidated Balance Sheet at January 2, 2010. The amounts deferred in Accumulated Other Comprehensive Loss associated with the 2006 Senior Secured Credit Facility and Second Lien Credit Facility were released to earnings as the underlying forecasted interest payments were no longer probable of occurring, which resulted in recognition of losses totaling $26,029 that are included in the “Other Expense (Income)” line of the Consolidated Statement of Income. The amounts deferred in Accumulated Other Comprehensive Loss associated with the Floating Rate Senior Notes interest rate hedge were frozen at the termination date and will be amortized over the original remaining term of the interest rate hedge instrument. The unamortized balance in Accumulated Other Comprehensive Loss was $17,043 as of January 1, 2011.

In the first quarter of 2010, the Company entered into two interest rate caps to hedge the risks associated with fluctuations in the 6-month LIBOR rate for the Floating Rate Senior Notes. The terms of the interest rate caps include: a total notional amount of $490,735, consisting of $240,735 and $250,000, respectively, an expiration date of December 2011, and a capped 6-month LIBOR interest rate of 4.26%.

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 Consolidated Statements of Income. The Company recognized gains (losses) related to ineffectiveness of hedging relationships in 2010 of $6 related to interest rate contracts. The Company recognized gains (losses) related to ineffectiveness of hedging relationships in 2009 of $161, consisting of $152 for interest rate contracts and $9 for foreign exchange contracts. The Company recognized gains (losses) related to ineffectiveness of hedging relationships in 2008 of $(323), consisting of $(149) for interest rate contracts and $(174) for foreign exchange contracts.

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


		Amount of Gain (Loss) Recognized in Income
	Location of Gain (Loss)	Year Ended
	Recognized in Income	January 1,			January 2,		January 3,
	on Derivative	2011			2010		2009
Foreign exchange contracts	Selling, general and administrative expenses	$	(2,073	)	$	3,846	$	(6,691	)

Total		$	(2,073	)	$	3,846	$	(6,691	)

Fair Value of Assets and Liabilities

12 Months Ended

Jan. 01, 2011

Fair Value of Assets and Liabilities [Abstract]

Fair Value of Assets and Liabilities

(14) 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.

Assets and liabilities measured at fair value are based on one or more of the following three valuation techniques:

•

Market approach — prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities.

•

Cost approach — amount that would be required to replace the service capacity of an asset or replacement cost.

•

Income approach — techniques to convert future amounts to a single present amount based on market expectations, including present value techniques, option-pricing and other models.

The Company primarily applies the market approach for commodity derivatives and for all defined benefit plan investment assets, and the income approach for interest rate and foreign currency derivatives for recurring fair value measurements and attempts to utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The determination of fair values incorporates various factors that include not only the credit standing of the counterparties involved and the impact of credit enhancements, but also the impact of the Company’s nonperformance risk on its liabilities. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels.

As of January 1, 2011 and January 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 and defined benefit pension plan investment assets. The fair values of cotton derivatives are determined based on quoted prices in public markets and are categorized as Level 1. The fair values of interest rate and foreign exchange rate derivatives are determined based on inputs that are readily available in public markets or can be derived from information available in publicly quoted markets and are categorized as Level 2. The fair values of defined benefit pension plan investments include: U.S. equity securities, certain foreign equity securities and debt securities that are determined based on quoted prices in public markets categorized as Level 1 certain foreign equity securities and debt securities that are determined based on inputs readily available in public markets or can be derived from information available in publicly quoted markets categorized as Level 2, and investments in hedge funds of funds and real estate investments that are based on unobservable inputs about which little or no market data exists that are classified as Level 3. There were no changes during 2010 to the Company’s valuation techniques used to measure asset and liability fair values on a recurring basis. The hedge fund of funds and real estate investments have varying redemption terms of monthly, quarterly and annually, and have required notification periods ranging from 45 to 90 days.

As of January 1, 2011, the Company did not have any non-financial assets or liabilities that are required to be measured at fair value on a 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 January 1, 2011
	Quoted Prices In Active		Significant
	Markets for		Other			Significant
	Identical		Observable			Unobservable
	Assets		Inputs			Inputs
	(Level 1)		(Level 2)			(Level 3)
Defined benefit pension plan investment assets:
Hedge fund of funds	$	—	$	—		$	275,650
U.S. equity securities		157,661		—			—
Foreign equity securities		36,889		27,423			—
Debt securities		5,433		106,311			—
Real estate		—		—			23,180
Cash and other		2,621		—			—

		202,604		133,734			298,830
Derivative contracts:
Interest rate derivative contracts		—		3			—
Foreign exchange derivative contracts		—		408			—
Foreign exchange derivative contracts		—		(1,345	)		—

		—		(934	)		—

Total	$	202,604	$	132,800		$	298,830


	Assets (Liabilities) at Fair Value as of January 2, 2010
	Quoted Prices In Active		Significant
	Markets for		Other			Significant
	Identical		Observable			Unobservable
	Assets		Inputs			Inputs
	(Level 1)		(Level 2)			(Level 3)
Defined benefit pension plan investment assets:
Hedge fund of funds	$	—	$	—		$	255,212
U.S. equity securities		143,603		—			—
Foreign equity securities		37,815		26,978			—
Debt securities		4,775		108,839			—
Real estate		—		—			19,990
Cash and other		15,378		—			—

		201,571		135,817			275,202

Derivative contracts:
Foreign exchange derivative contracts		—		614			—
Foreign exchange derivative contracts		—		(539	)		—

		—		75			—

Total	$	201,571	$	135,892		$	275,202

The table below sets forth a summary of changes in the fair value of the Level 3 investment assets in 2010 and 2009.


	Hedge fund of
	funds			Real estate
Balance at January 3, 2009	$	242,060		$	27,975
Actual return on assets		33,152			(7,985	)
Sale of assets		(20,000	)		—

Balance at January 2, 2010	$	255,212		$	19,990

Actual return on assets		20,438			3,190
Sale of assets		—			—

Balance at January 1, 2011	$	275,650		$	23,180

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 January 1, 2011 and January 2, 2010. The fair value of debt was $2,060,828 and $1,881,868 as of January 1, 2011 and January 2, 2010 and had a carrying value of $2,080,735 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 January 1, 2011 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

Defined Benefit Pension Plans

12 Months Ended

Jan. 01, 2011

Defined Benefit Pension Plans [Abstract]

Defined Benefit Pension Plans

(15) Defined Benefit Pension Plans

At January 1, 2011, the Company’s pension plans consisted of the Hanesbrands Inc. Pension Plan, various nonqualified retirement plans and international plans. Benefits under the Hanesbrands Inc. Pension Plan were frozen effective December 31, 2005.

The annual cost (income) incurred by the Company for these defined benefit plans in 2010, 2009 and 2008, was $14,806, $21,293 and $(11,801), respectively. The components of net periodic benefit cost and other amounts recognized in other comprehensive loss of the Company’s noncontributory defined benefit pension plans were as follows:


	Years Ended
	January 1,			January 2,			January 3,
	2011			2010			2009
Service cost	$	1,225		$	1,198		$	1,136
Interest cost		49,337			50,755			51,412
Expected return on assets		(44,094	)		(39,832	)		(64,549	)
Settlement cost		139			—			—
Amortization of:
Prior service cost		26			26			39
Net actuarial loss		8,173			9,146			161

Net periodic benefit cost (income)	$	14,806		$	21,293		$	(11,801	)

Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss)
Net (gain) loss	$	6,605		$	(11,947	)	$	300,127
Prior service cost		(26	)		(26	)		(140	)

Total recognized in other comprehensive loss (income)		6,579			(11,973	)		299,987

Total recognized in net periodic benefit cost and other comprehensive loss (income)	$	21,385		$	9,320		$	288,186

The estimated net loss and prior service credit for the defined benefit pension plans that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in 2011 are $9,111 and $29, respectively.

The funded status of the Company’s defined benefit pension plans at the respective year ends was as follows:


	January 1,			January 2,
	2011			2010
Accumulated benefit obligation:
Beginning of year	$	899,208		$	854,414
Service cost		1,225			1,198
Interest cost		49,337			50,755
Benefits paid		(56,859	)		(57,782	)
Impact of exchange rate change		1,939			2,711
Settlements		(1,284	)		(5,394	)
Actuarial loss		38,055			53,306

End of year		931,621			899,208

Fair value of plan assets:
Beginning of year		612,590			564,705
Actual return on plan assets		67,624			92,805
Employer contributions		11,956			16,052
Benefits paid		(56,859	)		(57,782	)
Settlements		(1,284	)		(5,744	)
Impact of exchange rate change		1,141			2,554

End of year		635,168			612,590

Funded status	$	(296,453	)	$	(286,618	)

In the fourth quarter of 2010, the Company recognized a one-time out of period adjustment resulting from a review of census data for the Hanesbrands Inc. Pension Plan, which reduced the accumulated benefit obligation by $18,892 and accumulated other comprehensive loss by $11,359 (net of taxes). The impact of the adjustment was not considered material to any current year or prior year periods.

The total accumulated benefit obligation and the accumulated benefit obligation and fair value of plan assets for the Company’s pension plans with accumulated benefit obligations in excess of plan assets are as follows:


	January 1,		January 2,
	2011		2010
Accumulated benefit obligation	$	931,621	$	899,208
Plans with accumulated benefit obligation in excess of plan assets
Accumulated benefit obligation		931,621		898,997
Fair value of plan assets		635,168		612,317

Amounts recognized in the Company’s Consolidated Balance Sheets consist of:


	January 1,			January 2,
	2011			2010
Noncurrent assets	$	—		$	51
Current liabilities		(2,177	)		(3,591	)
Noncurrent liabilities		(294,276	)		(283,078	)
Accumulated other comprehensive loss		(339,846	)		(332,370	)

Amounts recognized in accumulated other comprehensive loss consist of:


	January 1,		January 2,
	2011		2010
Prior service cost	$	139	$	165
Actuarial loss		339,707		332,205

	$	339,846	$	332,370

Accrued benefit costs related to the Company’s defined benefit pension plans are reported in the “Other noncurrent assets”, “Accrued liabilities — Payroll and employee benefits” and “Pension and postretirement benefits” lines of the Consolidated Balance Sheets.

(a) Measurement Date and Assumptions

A December 31 measurement date is used to value plan assets and obligations for the pension plans. In determining the discount rate, the Company utilizes, as a general benchmark, the single discount rate equivalent to discounting the expected cash flows from each plan using the yields at each duration from a published yield curve as of the measurement date. The expected long-term rate of return on plan assets was based on the Company’s investment policy target allocation of the asset portfolio between various asset classes and the expected real returns of each asset class over various periods of time. The weighted average actuarial assumptions used in measuring the net periodic benefit cost and plan obligations for the periods presented were as follows:


	January 1,			January 2,			January 3,
	2011			2010			2009
Net periodic benefit cost:
Discount rate		5.78	%		6.11	%		6.34	%
Long-term rate of return on plan assets		7.48			7.41			8.03
Rate of compensation increase (1)		3.70			3.38			3.63
Plan obligations:
Discount rate		5.27	%		5.78	%		6.11	%
Rate of compensation increase (1)		3.75			3.70			3.38


(1)		The compensation increase assumption applies to the international plans and portions of the nonqualified retirement plans, as benefits under these plans were not frozen at January 1, 2011, January 2, 2010 and January 3, 2009.

(b) Plan Assets, Expected Benefit Payments, and Funding

The allocation of pension plan assets as of the respective period end measurement dates is as follows:


	January 1,			January 2,
	2011			2010
Asset category:
Hedge fund of funds		43	%		42	%
U.S. equity securities		25			23
Debt securities		18			19
Foreign equity securities		10			11
Real estate		4			3
Cash and other		—			2

The Company’s asset strategy and primary investment objective are to maximize the principal value of the plan assets to meet current and future benefit obligations to plan participants and their beneficiaries. To accomplish this goal, the assets of the plan are broadly diversified to protect against large investment losses and to reduce the likelihood of excessive volatility of returns. Diversification of assets is achieved through strategic allocations to various asset classes, as well as various investment styles within these asset classes, and by retaining multiple, third-party investment management firms with complementary investment styles and philosophies to implement these allocations. The Company has established a target asset allocation based upon analysis of risk/return tradeoffs and correlations of asset mixes given long-term historical data, prospective capital market returns and forecasted liabilities of the plans. The target asset allocation approximates the actual asset allocation as of January 1, 2011. In addition to volatility protection, diversification enables the assets of the plan the best opportunity to provide adequate returns in order to meet the Company’s investment return objectives. These objectives include, over a rolling five-year period, to achieve a total return which exceeds the required actuarial rate of return for the plan and to outperform a passive portfolio, consisting of a similar asset allocation.

The Company utilizes market data or assumptions that market participants would use in pricing the pension plan assets. Effective January 2, 2010, the Company adopted new pension disclosure rules. In accordance with these rules, 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 pension plan assets. At January 1, 2011, the Company had $202,604 classified as Level 1 assets, $133,734 classified as Level 2 assets and $298,830 classified as Level 3 assets. At January 2, 2010, the Company had $201,571 classified as Level 1 assets, $135,817 classified as Level 2 assets and $275,202 classified as Level 3 assets. The Level 1 assets consisted primarily of U.S. equity securities, certain debt securities, certain foreign equity securities and cash and cash equivalents, Level 2 assets consisted primarily of certain debt securities and certain foreign equity securities, and Level 3 assets consisted primarily of hedge fund of funds and real estate investments. Refer to Note 14 for the Company’s complete disclosure of the fair value of pension plan assets.

The Company expects to make a $7 million to $9 million contribution to the Hanesbrands Inc. Pension Plan in 2011 based on a preliminary calculation by its actuary. Expected benefit payments are as follows: $50,993 in 2011, $50,430 in 2012, $50,341 in 2013, $52,510 in 2014, $53,392 in 2015 and $280,310 thereafter.

- Definition

Description containing the entire pension and other postretirement benefits disclosure as a single block of text.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 158

-Paragraph 7, 21, 22

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5, 6, 7, 8

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 8

-Subparagraph m

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 106

-Paragraph 518

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 87

-Paragraph 264

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5

-Subparagraph b

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5

-Subparagraph a

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5

-Subparagraph h

Reference 9: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5

-Subparagraph q

Reference 10: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name FASB Staff Position (FSP)

-Number FAS106-2

-Paragraph 20, 21, 22

Reference 11: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Emerging Issues Task Force (EITF)

-Number 03-2

-Paragraph 8

Reference 12: http://www.xbrl.org/2003/role/presentationRef

-Publisher AICPA

-Name Accounting Principles Board Opinion (APB)

-Number 30

-Paragraph 26

Reference 13: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Implementation Guide (Q and A)

-Number FAS88

-Paragraph 63

+ Details

Income Taxes

12 Months Ended

Jan. 01, 2011

Income Taxes [Abstract]

Income Taxes

(16) Income Taxes

The provision for income tax computed by applying the U.S. statutory rate to income before taxes as reconciled to the actual provisions were:


	Years Ended
	January 1,			January 2,			January 3,
	2011			2010			2009
Income before income tax expense:
Domestic		12.1	%		(142.8)	%		0.6	%
Foreign		87.9			242.8			99.4

		100.0	%		100.0	%		100.0	%

Tax expense at U.S. statutory rate		35.0	%		35.0	%		35.0	%
State income taxes		1.2			(3.4	)		0.6
Tax on remittance of foreign earnings		2.5			33.9			1.5
Foreign taxes less than U.S. statutory rate		(24.5	)		(46.4	)		(16.3	)
Change in state effective tax rate		—			(14.1	)		—
Employee benefits		1.3			10.6			0.6
Change in valuation allowance		3.0			(9.9	)		2.1
Release of unrecognized tax benefit reserves		(8.8	)		—			—
Other, net		(0.1	)		6.3			(1.5	)

Taxes at effective worldwide tax rates		9.6	%		12.0	%		22.0	%

Current and deferred tax provisions (benefits) were:


	Current			Deferred			Total
Year ended January 1, 2011
Domestic	$	(14,268	)	$	17,340		$	3,072
Foreign		23,157			(8,077	)		15,080
State		(2,245	)		6,531			4,286

	$	6,644		$	15,794		$	22,438

Year ended January 2, 2010
Domestic	$	—		$	6,727		$	6,727
Foreign		15,783			(9,503	)		6,280
State		362			(6,376	)		(6,014	)

	$	16,145		$	(9,152	)	$	6,993

Year ended January 3, 2009
Domestic	$	13,531		$	(3,672	)	$	9,859
Foreign		20,285			4,264			24,549
State		3,497			(2,037	)		1,460

	$	37,313		$	(1,445	)	$	35,868


	Years Ended
	January 1,		January 2,		January 3,
	2011		2010		2009
Cash payments for income taxes	$	23,350	$	15,163	$	32,767

Cash payments above represent cash tax payments made by the Company primarily in foreign jurisdictions.

The deferred tax assets and liabilities at the respective year-ends were as follows:


	January 1,			January 2,
	2011			2010
Deferred tax assets:
Nondeductible reserves	$	5,165		$	10,962
Inventories		93,972			84,964
Property and equipment		—			6,266
Intangibles		135,438			156,696
Bad debt allowance		11,404			13,170
Accrued expenses		13,049			11,590
Employee benefits		170,247			160,671
Tax credits		11,064			11,312
Net operating loss and other tax carryforwards		41,864			40,192
Derivatives		7,204			13,976
Other		16,305			6,275

Gross deferred tax assets		505,712			516,074
Less valuation allowances		(27,064	)		(21,556	)

Deferred tax assets		478,648			494,518

Deferred tax liabilities:
Property and equipment		4,204			—
Prepaids		5,473			2,718

Deferred tax liabilities		9,677			2,718

Net deferred tax assets	$	468,971		$	491,800

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods which the deferred tax assets are deductible, management believes it is more likely than not the Company will realize the benefits of these deductible differences, net of the existing valuation allowances.

The valuation allowance for deferred tax assets as of January 1, 2011 and January 2, 2010 was $27,064 and $21,556, respectively. The net change in the total valuation allowance for 2010 was $5,508 which, including foreign currency fluctuations, related to foreign loss carryforwards generated partially offset by favorable financial performance in certain foreign jurisdictions. The net change in the total valuation allowance for 2009 was $(2,171) which, including foreign currency fluctuations, consisted of a release of $(6,816) related to favorable financial performance in certain foreign jurisdictions partially offset by foreign loss carryforwards generated.

The valuation allowance at January 1, 2011 and January 2, 2010 relates to deferred tax assets established for foreign loss carryforwards of $25,560 and $21,556, respectively.

At January 1, 2011, the Company has total net operating loss carryforwards of approximately $113,223 for foreign jurisdictions, which will expire as follows:


Fiscal Year:
2011	$	3,188
2012		5,724
2013		23,925
2014		9,503
2015		11,979
Thereafter		58,904

At January 1, 2011, the Company had tax credit carryforwards totaling $11,064 which expire after 2019.

At January 1, 2011, applicable U.S. federal income taxes and foreign withholding taxes have not been provided on the accumulated earnings of foreign subsidiaries that are expected to be permanently reinvested. If these earnings had not been permanently reinvested, deferred taxes of approximately $231,000 would have been recognized in the Consolidated Financial Statements.

The Company and Sara Lee entered into a tax sharing agreement in connection with the spin off of the Company from Sara Lee on September 5, 2006. In accordance with section 2.12 of the tax sharing agreement, the Company recorded a liability of approximately $15,000 to Sara Lee for amounts related to income generated prior to the spin off from Sara Lee which were repatriated in periods since the spin off. The liability is included in Accounts payable in the Consolidated Balance Sheet as of January 1, 2011 resulting in a reduction to Additional paid-in capital. Except for amounts reflected in this Note 16, to the best of the Company’s knowledge, there are no other amounts owed to or from Sara Lee under the tax sharing agreement.

In 2010, the Company recognized a benefit of $20,504 which 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 less than originally estimated. Although it is not reasonably possible to estimate the amount by which unrecognized tax benefits may increase or decrease within the next twelve months due to uncertainties regarding the timing of examinations and the amount of settlements that may be paid, if any, to tax authorities, the Company currently does not expect any changes for unrecognized tax benefits accrued at January 1, 2011 within the next twelve months.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:


Balance at January 3, 2009	$	25,182
Additions based on tax positions related to the current year		12,677
Additions for tax positions of prior years		2,520
Reductions for tax positions of prior years		(450	)

Balance at January 2, 2010	$	39,929
Additions based on tax positions related to the current year		10,312
Reductions for tax positions of prior years		(20,504	)

Balance at January 1, 2011	$	29,737

Included in unrecognized tax benefits are $29,737 of tax benefits that, if recognized, would reduce the Company’s annual effective tax rate. The Company’s policy is to recognize interest and/or penalties related to income tax matters in income tax expense. The Company recognized $1,386, $1,010 and $647 for interest and penalties classified as income tax expense in the Consolidated Statement of Income for 2010, 2009 and 2008, respectively. At January 1, 2011 and January 2, 2010, the Company had a total of $4,687 and $2,377, respectively, of interest and penalties accrued related to unrecognized tax benefits.

The Company files a consolidated U.S. federal income tax return, as well as separate and combined income tax returns in numerous state and foreign jurisdictions. The tax years subject to examination vary by jurisdiction. The Company regularly assesses the outcomes of both ongoing and future examinations for the current or prior years to ensure the Company’s provision for income taxes is sufficient. The Company recognizes liabilities based on estimates of whether additional taxes will be due and believes its reserves are adequate in relation to any potential assessments.

Under the tax sharing agreement with Sara Lee discussed above, 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 Other current assets in the Consolidated Balance Sheet as of January 1, 2011 and January 2, 2010. The Company and Sara Lee exchanged information in connection with this matter, but Sara Lee 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.

Stockholders' Equity	12 Months Ended
Stockholders' Equity	Jan. 01, 2011
Stockholders' Equity[Abstract]
Stockholders' Equity	(17) Stockholders’ Equity The Company is authorized to issue up to 500,000 shares of common stock, par value $0.01 per share, and up to 50,000 shares of preferred stock, par value $0.01 per share, and the Company’s board of directors may, without stockholder approval, increase or decrease the aggregate number of shares of stock or the number of shares of stock of any class or series that the Company is authorized to issue. At January 1, 2011 and January 2, 2010, 96,207 and 95,397 shares, respectively, of common stock were issued and outstanding and no shares of preferred stock were issued or outstanding. Included within the 50,000 shares of preferred stock, 500 shares are designated Junior Participating Preferred Stock, Series A (the “Series A Preferred Stock”) and reserved for issuance upon the exercise of rights under the rights agreement described below. On February 1, 2007, the Company announced that the Board of Directors granted authority for the repurchase of up to 10,000 shares of the Company’s common stock. Share repurchases are made periodically in open-market transactions, and are subject to market conditions, legal requirements and other factors. Additionally, management has been granted authority to establish a trading plan under Rule 10b5-1 of the Exchange Act in connection with share repurchases, which will allow the Company to repurchase shares in the open market during periods in which the stock trading window is otherwise closed for our company and certain of the Company’s officers and employees pursuant to the Company’s insider trading policy. Since inception of the program, the Company has purchased 2,800 shares of common stock at a cost of $74,747 (average price of $26.33). The primary objective of the share repurchase program is to reduce the impact of dilution caused by the exercise of options and vesting of stock unit awards. *Preferred Stock Purchase Rights* Pursuant to a stockholder rights agreement entered into by the Company prior to the spin off, one preferred stock purchase right will be distributed with and attached to each share of the Company’s common stock. Each right will entitle its holder, under the circumstances described below, to purchase from the Company one one-thousandth of a share of the Series A Preferred Stock at an exercise price of $75 per right. Initially, the rights will be associated with the Company’s common stock, and will be transferable with and only with the transfer of the underlying share of common stock. Until a right is exercised, its holder, as such, will have no rights as a stockholder with respect to such rights, including, without limitation, the right to vote or to receive dividends. The rights will become exercisable and separately certificated only upon the rights distribution date, which will occur upon the earlier of: (i) ten days following a public announcement by the Company that a person or group (an “acquiring person”) has acquired, or obtained the right to acquire, beneficial ownership of 15% or more of its outstanding shares of common stock (the date of the announcement being the “stock acquisition date”); or (ii) ten business days (or later if so determined by our board of directors) following the commencement of or public disclosure of an intention to commence a tender offer or exchange offer by a person if, after acquiring the maximum number of securities sought pursuant to such offer, such person, or any affiliate or associate of such person, would acquire, or obtain the right to acquire, beneficial ownership of 15% or more of our outstanding shares of the Company’s common stock. Upon the Company’s public announcement that a person or group has become an acquiring person, each holder of a right (other than any acquiring person and certain related parties, whose rights will have automatically become null and void) will have the right to receive, upon exercise, common stock with a value equal to two times the exercise price of the right. In the event of certain business combinations, each holder of a right (except rights which previously have been voided as described above) will have the right to receive, upon exercise, common stock of the acquiring company having a value equal to two times the exercise price of the right. The Company may redeem the rights in whole, but not in part, at a price of $0.001 per right (subject to adjustment and payable in cash, common stock or other consideration deemed appropriate by the board of directors) at any time prior to the earlier of the stock acquisition date and the rights expiration date. Immediately upon the action of the board of directors authorizing any redemption, the rights will terminate and the holders of rights will only be entitled to receive the redemption price. At any time after a person becomes an acquiring person and prior to the earlier of (i) the time any person, together with all affiliates and associates, becomes the beneficial owner of 50% or more of the Company’s outstanding common stock and (ii) the occurrence of a business combination, the board of directors may cause the Company to exchange for all or part of the then-outstanding and exercisable rights shares of its common stock at an exchange ratio of one common share per right, adjusted to reflect any stock split, stock dividend or similar transaction.

Business Segment Information

12 Months Ended

Jan. 01, 2011

Business Segment Information [Abstract]

Business Segment Information

(18) 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, “Summary of Significant Accounting Policies.”


	Years Ended
	January 1,		January 2,		January 3,
	2011		2010		2009
Net sales:
Innerwear	$	2,012,922	$	1,833,616	$	1,947,167
Outerwear		1,259,935		1,051,735		1,196,155
Hosiery		166,780		185,710		217,391
Direct to Consumer		377,847		369,739		370,163
International		509,229		437,804		496,170
Other		—		12,671		21,724

Total net sales	$	4,326,713	$	3,891,275	$	4,248,770


	Years Ended
	January 1,			January 2,			January 3,
	2011			2010			2009
Segment operating profit (loss):
Innerwear	$	263,368		$	234,352		$	223,420
Outerwear		77,656			53,050			66,149
Hosiery		53,583			61,070			68,696
Direct to Consumer		25,880			37,178			44,541
International		59,368			44,688			64,349
Other		—			(2,164	)		328

Total segment operating profit		479,855			428,174			467,483
Items not included in segment operating profit (loss):
General corporate expenses		(63,158	)		(75,127	)		(45,177	)
Amortization of trademarks and other identifiable intangibles		(12,509	)		(12,443	)		(12,019	)
Restructuring		—			(53,888	)		(50,263	)
Inventory write-offs included in cost of sales		—			(4,135	)		(18,696	)
Accelerated depreciation included in cost of sales		—			(8,641	)		(23,862	)
Accelerated depreciation included in selling, general and administrative expenses		—			(3,084	)		14

Total operating profit		404,188			270,856			317,480
Other (expense) income		(20,221	)		(49,301	)		634
Interest expense, net		(150,236	)		(163,279	)		(155,077	)

Income before income tax expense	$	233,731		$	58,276		$	163,037


	January 1,		January 2,
	2011		2010
Assets:
Innerwear	$	1,269,839	$	1,101,632
Outerwear		828,142		707,118
Hosiery		71,496		83,662
Direct to Consumer		88,623		80,243
International		278,757		221,504
Other		—		1,622

		2,536,857		2,195,781
Corporate (1)		1,253,145		1,130,783

Total assets	$	3,790,002	$	3,326,564


	Years Ended
	January 1,		January 2,		January 3,
	2011		2010		2009
Depreciation and amortization expense:
Innerwear	$	35,095	$	36,328	$	39,949
Outerwear		21,709		21,988		25,092
Hosiery		2,627		3,831		5,778
Direct to Consumer		6,116		5,621		3,713
International		2,096		2,071		2,288
Other		—		169		802

		67,643		70,008		77,622
Corporate		18,969		26,747		37,523

Total depreciation and amortization expense	$	86,612	$	96,755	$	115,145


	Years Ended
	January 1,		January 2,		January 3,
	2011		2010		2009
Additions to long-lived assets:
Innerwear	$	49,319	$	49,061	$	70,808
Outerwear		38,000		59,048		84,412
Hosiery		550		711		781
Direct to Consumer		11,679		8,914		11,152
International		2,543		1,504		2,693
Other		—		16		46

		102,091		119,254		169,892
Corporate		4,149		7,571		17,065

Total additions to long-lived assets	$	106,240	$	126,825	$	186,957


(1)		Principally cash and equivalents, certain fixed assets, net deferred tax assets, goodwill, trademarks and other identifiable intangibles, and certain other noncurrent assets.

Sales to Wal-Mart, Target and Kohl’s were substantially in the Innerwear and Outerwear segments and represented 26%, 17% and 6% of total sales in 2010, respectively.

Worldwide sales by product category for Innerwear, Outerwear and Hosiery were $2,616,865, $1,485,152 and $224,696, respectively, in 2010.

Quarterly Financial Data (Unaudited)

12 Months Ended

Jan. 01, 2011

Quarterly Financial Data (Unaudited) [Abstract]

Quarterly Financial Data (Unaudited)

(20) Quarterly Financial Data (Unaudited)


	First			Second		Third		Fourth			Total
2010
Net sales	$	927,840		$	1,075,852	$	1,173,362	$	1,149,659		$	4,326,713
Gross profit		327,430			374,806		363,875		348,658			1,414,769
Net income (loss)		36,513			85,412		61,312		28,056			211,293
Basic earnings (loss) per share		0.38			0.89		0.64		0.29			2.19
Diluted earnings (loss) per share		0.37			0.87		0.63		0.29			2.16
2009
Net sales	$	857,841		$	986,022	$	1,058,673	$	988,739		$	3,891,275
Gross profit		257,876			327,391		356,680		323,327			1,265,274
Net income		(19,328	)		30,555		41,138		(1,082	)		51,283
Basic earnings per share		(0.20	)		0.32		0.43		(0.01	)		0.54
Diluted earnings per share		(0.20	)		0.32		0.43		(0.01	)		0.54

The amounts above include the impact of restructuring as described in Note 22 to the consolidated financial statements.

- Definition

This element can be used to disclose the entire quarterly financial data disclosure in the annual financial statements as a single block of text. The disclosure includes a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income (loss) before extraordinary items and cumulative effect of a change in accounting principle and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished. Alternatively, the details of this disclosure can be reported using the elements in this group, or by using other taxonomy elements and applying the appropriate quarterly date and period contexts when creating an instance document. For example, the element for "Interest and Dividend Income, Operating" may be used by financial institutions from the Statement of Income, applying the appropriate quarterly date and period context when creating an instance document.

+ References+ Details

Consolidating Financial Information

12 Months Ended

Jan. 01, 2011

Consolidating Financial Information [Abstract]

Consolidating Financial Information

(21) Consolidating Financial Information

In accordance with the indenture governing the Company’s $500,000 Floating Rate Senior Notes issued on December 14, 2006, the indenture governing the Company’s $500,000 8% Senior Notes issued on December 10, 2009 and the indenture governing the Company’s $1,000,000 6.375% Senior Notes issued on November 9, 2010 (together, the “Indentures”), certain of the Company’s subsidiaries have guaranteed the Company’s obligations under the Floating Rate Senior Notes, the 8% Senior Notes and the 6.375% 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, the 8% Senior Notes and the 6.375% 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 consolidated financial statements, 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.


	Consolidating Statement of Income Year Ended January 1, 2011
									Consolidating
	Parent			Guarantor			Non-Guarantor		Entries and
	Company			Subsidiaries			Subsidiaries		Eliminations			Consolidated
Net sales	$	4,018,341		$	470,527		$	3,025,488	$	(3,187,643	)	$	4,326,713
Cost of sales		3,268,900			187,657			2,672,497		(3,217,110	)		2,911,944

Gross profit		749,441			282,870			352,991		29,467			1,414,769
Selling, general and administrative expenses		793,210			99,636			116,713		1,022			1,010,581

Operating profit (loss)		(43,769	)		183,234			236,278		28,445			404,188
Equity in earnings (loss) of subsidiaries		396,080			155,925			—		(552,005	)		—
Other expense		20,221			—			—		—			20,221
Interest expense, net		138,746			(90	)		11,584		(4	)		150,236

Income (loss) before income tax expense (benefit)		193,344			339,249			224,694		(523,556	)		233,731
Income tax expense (benefit)		(17,949	)		27,625			12,762		—			22,438

Net income (loss)	$	211,293		$	311,624		$	211,932	$	(523,556	)	$	211,293


	Consolidating Statement of Income Year Ended January 2, 2010
								Consolidating
	Parent			Guarantor		Non-Guarantor		Entries and
	Company			Subsidiaries		Subsidiaries		Eliminations			Consolidated
Net sales	$	3,911,759		$	429,717	$	2,707,159	$	(3,157,360	)	$	3,891,275
Cost of sales		3,201,313			157,800		2,402,017		(3,135,129	)		2,626,001

Gross profit		710,446			271,917		305,142		(22,231	)		1,265,274
Selling, general and administrative expenses		743,907			88,993		105,366		2,264			940,530
Restructuring		48,319			—		5,569		—			53,888

Operating profit (loss)		(81,780	)		182,924		194,207		(24,495	)		270,856
Equity in earnings (loss) of subsidiaries		294,200			102,506		—		(396,706	)		—
Other expense		49,301			—		—		—			49,301
Interest expense, net		123,760			21,284		18,235		—			163,279

Income (loss) before income tax expense (benefit)		39,359			264,146		175,972		(421,201	)		58,276
Income tax expense (benefit)		(11,924	)		3,843		15,074		—			6,993

Net income (loss)	$	51,283		$	260,303	$	160,898	$	(421,201	)	$	51,283


	Consolidating Statement of Income Year Ended January 3, 2009
								Consolidating
	Parent			Guarantor		Non-Guarantor		Entries and
	Company			Subsidiaries		Subsidiaries		Eliminations			Consolidated
Net sales	$	4,456,838		$	432,209	$	2,839,424	$	(3,479,701	)	$	4,248,770
Cost of sales		3,520,096			169,115		2,537,883		(3,355,674	)		2,871,420

Gross profit		936,742			263,094		301,541		(124,027	)		1,377,350
Selling, general and administrative expenses		839,023			76,139		94,281		164			1,009,607
Restructuring		34,313			375		15,575		—			50,263

Operating profit (loss)		63,406			186,580		191,685		(124,191	)		317,480
Equity in earnings (loss) of subsidiaries		170,714			128,359		—		(299,073	)		—
Other income		(634	)		—		—		—			(634	)
Interest expense, net		103,919			33,462		17,696		—			155,077

Income (loss) before income tax expense		130,835			281,477		173,989		(423,264	)		163,037
Income tax expense		3,666			9,312		22,890		—			35,868

Net income (loss)	$	127,169		$	272,165	$	151,099	$	(423,264	)	$	127,169


	Condensed Consolidating Balance Sheet
	January 1, 2011
							Consolidating
	Parent		Guarantor		Non-Guarantor		Entries and
	Company		Subsidiaries		Subsidiaries		Eliminations			Consolidated
Assets
Cash and cash equivalents	$	17,535	$	2,039	$	24,097	$	—		$	43,671
Trade accounts receivable less allowances		50,375		35,256		417,612		—			503,243
Inventories		954,073		100,435		355,908		(87,697	)		1,322,719
Deferred tax assets and other current assets		255,880		13,480		8,894		(216	)		278,038

Total current assets		1,277,863		151,210		806,511		(87,913	)		2,147,671

Property, net		118,596		47,842		464,816		—			631,254
Trademarks and other identifiable intangibles, net		16,006		141,635		20,981		—			178,622
Goodwill		232,882		124,214		73,048		—			430,144
Investments in subsidiaries		1,542,231		886,349		—		(2,428,580	)		—
Deferred tax assets and other noncurrent assets		115,500		350,862		146,859		(210,910	)		402,311

Total assets	$	3,303,078	$	1,702,112	$	1,512,215	$	(2,727,403	)	$	3,790,002


Liabilities and Stockholders’ Equity
Accounts payable	$	243,169	$	17,198	$	152,002	$	—		$	412,369
Accrued liabilities		150,831		55,502		69,979		(9	)		276,303
Notes payable		—		—		50,678		—			50,678
Current portion of debt		—		—		90,000		—			90,000

Total current liabilities		394,000		72,700		362,659		(9	)		829,350

Long-term debt		1,990,735		—		—		—			1,990,735
Other noncurrent liabilities		355,669		35,072		16,502		—			407,243

Total liabilities		2,740,404		107,772		379,161		(9	)		3,227,328
Stockholders’ equity		562,674		1,594,340		1,133,054		(2,727,394	)		562,674

Total liabilities and stockholders’ equity	$	3,303,078	$	1,702,112	$	1,512,215	$	(2,727,403	)	$	3,790,002


	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
	Year Ended January 1, 2011
										Consolidating
	Parent			Guarantor			Non-Guarantor			Entries and
	Company			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	381,450		$	162,475		$	139,614		$	(550,485	)	$	133,054

Investing activities:
Purchases of property, plant and equipment		(25,813	)		(11,403	)		(69,024	)		—			(106,240	)
Acquisition of business, net of cash acquired		—			(222,878	)		—			—			(222,878	)
Proceeds from sales of assets		44,269			—			1,373			—			45,642
Other		(519	)		—			—			—			(519	)

Net cash provided by (used in) investing activities		17,937			(234,281	)		(67,651	)		—			(283,995	)

Financing activities:
Borrowings on notes payable		—			—			1,394,782			—			1,394,782
Repayments on notes payable		—			—			(1,411,295	)		—			(1,411,295	)
Payments to amend and refinance credit facilities		(23,833	)		—			—			—			(23,833	)
Borrowings on revolving loan facility		2,228,500			—			—			—			2,228,500
Repayments on revolving loan facility		(2,280,000	)		—			—			—			(2,280,000	)
Repayment of debt under 2009 Senior Secured Credit Facility		(750,000	)		—			—			—			(750,000	)
Issuance of 6.375% Senior Notes		1,000,000			—			—			—			1,000,000
Borrowings on Accounts Receivable Securitization Facility		—			—			207,290			—			207,290
Repayments on Accounts Receivable Securitization Facility		—			—			(217,290	)		—			(217,290	)
Proceeds from stock options exercised		5,938			—			—			—			5,938
Other		1,639			—			(46	)		—			1,593
Net transactions with related entities		(576,901	)		72,199			(45,783	)		550,485			—

Net cash provided by (used in) financing activities		(394,657	)		72,199			(72,342	)		550,485			155,685

Effect of changes in foreign exchange rates on cash		—			—			(16	)		—			(16	)

Increase (decrease) in cash and cash equivalents		4,730			393			(395	)		—			4,728
Cash and cash equivalents at beginning of year		12,805			1,646			24,492			—			38,943

Cash and cash equivalents at end of year	$	17,535		$	2,039		$	24,097		$	—		$	43,671


	Condensed Consolidating Statement of Cash Flows
	Year Ended January 2, 2010
										Consolidating
	Parent			Guarantor			Non-Guarantor			Entries and
	Company			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	170,296		$	497,035		$	140,743		$	(393,570	)	$	414,504

Investing activities:
Purchases of property, plant and equipment		(21,442	)		(8,036	)		(97,347	)		—			(126,825	)
Proceeds from sales of assets		32,931			—			5,034			—			37,965
Other		(148	)		16			—			148			16

Net cash provided by (used in) investing activities		11,341			(8,020	)		(92,313	)		148			(88,844	)

Financing activities:
Borrowings on notes payable		—			—			1,628,764			—			1,628,764
Repayments on notes payable		—			—			(1,624,139	)		—			(1,624,139	)
Incurrence of debt under 2009 Senior Secured Credit Facility		750,000			—			—			—			750,000
Payments to amend and refinance credit facilities		(71,826	)		—			(3,150	)		—			(74,976	)
Borrowings on revolving loan facility		2,034,026			—			—			—			2,034,026
Repayments on revolving loan facility		(1,982,526	)		—			—			—			(1,982,526	)
Repayment of debt under 2006 Senior Secured Credit Facility		(990,250	)		(450,000	)		—			—			(1,440,250	)
Issuance of 8% Senior Notes		500,000			—			—			—			500,000
Repurchase of Floating Rate Senior Notes		(2,788	)		—			—			—			(2,788	)
Borrowings on Accounts Receivable Securitization Facility		—			—			183,451			—			183,451
Repayments on Accounts Receivable Securitization Facility		—			—			(326,068	)		—			(326,068	)
Proceeds from stock options exercised		1,179			—			—			—			1,179
Other		(815	)		—			(32	)		—			(847	)
Net transactions with related entities		(422,042	)		(39,724	)		68,344			393,422			—

Net cash provided by (used in) financing activities		(185,042	)		(489,724	)		(72,830	)		393,422			(354,174	)

Effect of changes in foreign exchange rates on cash		—			—			115			—			115

Decrease in cash and cash equivalents		(3,405	)		(709	)		(24,285	)		—			(28,399	)
Cash and cash equivalents at beginning of year		16,210			2,355			48,777			—			67,342

Cash and cash equivalents at end of year	$	12,805		$	1,646		$	24,492		$	—		$	38,943


	Condensed Consolidating Statement of Cash Flows
	Year Ended January 3, 2009
										Consolidating
	Parent			Guarantor			Non-Guarantor			Entries and
	Company			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	18,786		$	139,463		$	319,393		$	(300,245	)	$	177,397

Investing activities:
Purchases of property, plant and equipment		(32,129	)		(10,813	)		(144,015	)		—			(186,957	)
Acquisition of businesses, net of cash acquired		—			—			(14,655	)		—			(14,655	)
Proceeds from sales of assets		20,612			38			4,358			—			25,008
Other		2,047			(91	)		(1,772	)		(828	)		(644	)

Net cash used in investing activities		(9,470	)		(10,866	)		(156,084	)		(828	)		(177,248	)

Financing activities:
Borrowings on notes payable		—			—			602,627			—			602,627
Repayments on notes payable		—			—			(560,066	)		—			(560,066	)
Payments to amend credit facilities		(48	)		(10	)		(11	)		—			(69	)
Borrowings on revolving loan facility		791,000			—			—			—			791,000
Repayments on revolving loan facility		(791,000	)		—			—			—			(791,000	)
Repayment of debt under 2006 Senior Secured Credit Facility		(125,000	)		—			—			—			(125,000	)
Repurchase of Floating Rate Senior Notes		(4,354	)		—			—			—			(4,354	)
Borrowings on Accounts Receivable Securitization Facility		—			—			20,944			—			20,944
Repayments on Accounts Receivable Securitization Facility		—			—			(28,327	)		—			(28,327	)
Proceeds from stock options exercised		2,191			—			—			—			2,191
Stock repurchases		(30,275	)		—			—			—			(30,275	)
Transaction with Sara Lee Corporation		18,000			—			—			—			18,000
Other		(395	)		—			(14	)		—			(409	)
Net transactions with related entities		62,299			(132,561	)		(230,811	)		301,073			—

Net cash provided by (used in) financing activities		(77,582	)		(132,571	)		(195,658	)		301,073			(104,738	)

Effect of changes in foreign exchange rates on cash		—			—			(2,305	)		—			(2,305	)

Decrease in cash and cash equivalents		(68,266	)		(3,974	)		(34,654	)		—			(106,894	)
Cash and cash equivalents at beginning of year		84,476			6,329			83,431			—			174,236

Cash and cash equivalents at end of year	$	16,210		$	2,355		$	48,777		$	—		$	67,342

- 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

12 Months Ended

Jan. 01, 2011

Restructuring [Abstract]

Restructuring

(22) 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 in place, the Company is focused long-term on optimizing its supply chain to further enhance efficiency, improve working capital and asset turns and reduce costs through several initiatives, such as supplier-managed inventory for raw materials and sourced goods ownership arrangements. The Company consolidated its distribution network by implementing new warehouse management systems and technology and adding new distribution centers and new third-party logistics providers to replace parts of its legacy distribution network, including relocating distribution capacity to its West Coast distribution facility in California in order to expand capacity for goods it sources from Asia.

The reported results for 2010, 2009 and 2008 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:


	Years Ended
	January 1,		January 2,		January 3,
	2011		2010		2009
Restructuring programs:
Year ended January 2, 2010 restructuring actions	$	—	$	46,216	$	—
Year ended January 3, 2009 restructuring actions		—		17,833		87,117
Year ended December 29, 2007 restructuring actions		—		4,631		8,661
Six months ended December 30, 2006 and prior restructuring actions		—		1,068		(2,971	)

	$	—	$	69,748	$	92,807

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


	Years Ended
	January 1,		January 2,		January 3,
	2011		2010		2009
Cost of sales	$	—	$	12,776	$	42,558
Selling, general and administrative expenses		—		3,084		(14	)
Restructuring		—		53,888		50,263

	$	—	$	69,748	$	92,807

Components of the restructuring actions are as follows:


	Years Ended
	January 1,		January 2,		January 3,
	2011		2010		2009
Accelerated depreciation	$	—	$	11,725	$	23,848
Inventory write-offs		—		4,135		18,696
Fixed asset impairments		—		7,503		8,993
Employee termination and other benefits		—		23,941		34,409
Noncancelable lease and other contractual obligations and other		—		22,444		6,861

	$	—	$	69,748	$	92,807

Rollforward of accrued restructuring is as follows:


	Years Ended
	January 1,			January 2,			January 3,
	2011			2010			2009
Beginning accrual	$	22,399		$	21,793		$	23,350
Restructuring expenses		—			45,720			49,198
Cash payments		(16,357	)		(42,282	)		(41,185	)
Adjustments to restructuring expenses		—			(2,832	)		(9,570	)

Ending accrual	$	6,042		$	22,399		$	21,793

The accrual balance as of January 1, 2011 is comprised of $6,036 in current accrued liabilities and $6 in other noncurrent liabilities. The $6,036 in current accrued liabilities consists of $2,713 for employee termination and other benefits and $3,323 for noncancelable lease and other contractual obligations. The $6 in other noncurrent liabilities primarily consists of noncancelable lease and other contractual obligations.

Adjustments to previous estimates resulted from actual costs to settle obligations being lower than expected. The adjustments were reflected in the “Restructuring” line of the Consolidated Statements of Income.

Year Ended January 2, 2010 Actions

During 2009, the Company approved actions to close eight manufacturing facilities, three distribution centers, a yarn warehouse and a cotton warehouse in the Dominican Republic, the United States, Costa Rica, Honduras, Puerto Rico and Canada, and eliminate an aggregate of approximately 4,100 positions in those countries and El Salvador. The production capacity represented by the manufacturing facilities has been primarily relocated to lower cost locations in Asia, Central America and the Caribbean Basin. The distribution capacity has been relocated to the Company’s West Coast distribution center in California in order to expand capacity for goods the Company sources from Asia. In addition, approximately 300 management and administrative positions were eliminated, with the majority of these positions based in the United States. The Company recorded charges of $46,216 in 2009, related to these actions. The Company recognized $25,038 for employee termination and other benefits recognized in accordance with benefit plans previously communicated to the affected employee group, $9,204 for accelerated depreciation of buildings and equipment, $6,071 for noncancelable lease and other contractual obligations related to the closure of certain manufacturing facilities, $3,529 for fixed asset impairments related to the closure of certain manufacturing facilities, $1,635 for write-offs of stranded raw materials and work in process inventory determined not to be salvageable or cost-effective to relocate related to the closure of certain manufacturing facilities and $739 for other exit costs. These charges are reflected in the “Restructuring,” “Cost of sales” and “Selling, general and administrative expenses” lines of the Consolidated Statements of Income. As of January 1, 2011, the severance obligation remaining in accrued restructuring on the Consolidated Balance Sheet was $1,928. The noncancelable lease and other contractual obligations remaining in accrued restructuring on the Consolidated Balance Sheet as of January 1, 2011 was $192.

During 2009, the Company ceased making its own yarn and now sources all of its yarn requirements from large-scale yarn suppliers. The Company entered into an agreement with Parkdale America, LLC (“Parkdale America”) under which the Company agreed to sell or lease assets related to operations at the Company’s four yarn manufacturing facilities to Parkdale America. The transaction closed in October 2009 and resulted in Parkdale America operating three of the four facilities. As discussed above, the Company approved an action to close the fourth yarn manufacturing facility, as well as a yarn warehouse and a cotton warehouse. The Company also entered into a yarn purchase agreement with Parkdale America and Parkdale Mills, LLC (together with Parkdale America, “Parkdale”). Under this agreement, which has an initial term of six years, Parkdale will produce and sell to the Company a substantial amount of the Company’s Western Hemisphere yarn requirements. During the first two years of the term, Parkdale will also produce and sell to the Company a substantial amount of the yarn requirements of the Company’s Nanjing, China textile facility.

Year Ended January 3, 2009 Actions

During 2008, the Company approved actions to close 11 manufacturing facilities and three distribution centers and eliminate approximately 6,800 positions in Mexico, the United States, Costa Rica, Honduras and El Salvador. The production capacity represented by the manufacturing facilities has been relocated to lower cost locations in Asia, Central America and the Caribbean Basin. The distribution capacity has been relocated to the Company’s West Coast distribution facility in California in order to expand capacity for goods the Company sources from Asia. In addition, approximately 200 management and administrative positions were eliminated, with the majority of these positions based in the United States. All actions were substantially completed within a 12-month period. The Company recorded charges of $87,117 in the year ended January 3, 2009. The Company recognized $37,190 which represents employee termination and other benefits recognized in accordance with benefit plans previously communicated to the affected employee group, $18,696 for write-offs of stranded raw materials and work in process inventory determined not to be salvageable or cost-effective to relocate related to the closure of certain manufacturing facilities, $14,457 for accelerated depreciation of buildings and equipment, $8,495 for noncancelable leases, other contractual obligations and other charges related to the closure of certain manufacturing facilities and $8,279 for fixed asset impairments related to the closure of certain manufacturing facilities. These charges are reflected in the “Restructuring,” “Cost of sales” and “Selling, general and administrative expenses” lines of the Consolidated Statement of Income. As of January 1, 2011, the severance obligation remaining in accrued restructuring on the Consolidated Balance Sheet was $785. The lease termination and other contractual obligations remaining in accrued restructuring on the Consolidated Balance Sheet as of January 1, 2011 was $3,089.

During 2009, the Company recognized additional charges, as well as credits for certain actions which were completed for amounts more favorable than previously estimated, associated with facility closures announced in 2008, resulting in a decrease of $17,833 to income before income tax expense. In 2009, the Company recognized charges of $7,628 for noncancelable lease and other contractual obligations associated with plant closures announced in 2008, charges of $7,620 for other exit costs, charges of $2,732 for fixed asset impairments related to the closure of certain manufacturing facilities and charges of $2,411 for write-offs of stranded raw materials and work in process inventory determined not to be salvageable or cost-effective to relocate related to the closure of certain manufacturing facilities. The Company recognized credits of $836 for employee termination and other benefits resulting from actual costs to settle obligations being lower than expected and credits of $1,722 to accelerated depreciation as a result of proceeds from sales of fixed assets to which accelerated depreciation was previously charged exceeding previous estimates. These charges and credits are reflected in the “Restructuring,” and “Cost of sales” and “Selling, general and administrative expenses” lines of the Consolidated Statements of Income.

Year Ended December 29, 2007 Restructuring Actions

During 2007, the Company, in connection with its consolidation and globalization strategy, approved actions to close 16 manufacturing facilities and three distribution centers in the Dominican Republic, Mexico, the United States, Brazil and Canada. All actions were substantially completed within a 12-month period. The net impact of these actions was to reduce income before income tax expense by $70,050 in the year ended December 29, 2007. As of January 1, 2011, there was no remaining severance obligation on the Consolidated Balance Sheet. The lease termination and other contractual obligations remaining in accrued restructuring on the Consolidated Balance Sheet as of January 1, 2011 was $48.

During 2008, the Company recognized additional restructuring charges associated with plant closures announced in 2007, resulting in a decrease of $8,661 to net income before income tax expense. The Company recognized charges of $10,484 for accelerated depreciation of buildings and equipment associated with plant closures and charges of $661 for lease termination costs, other contractual obligations and other restructuring related expenses. The additional charges are reflected in the “Cost of sales,” “Selling, general and administrative expenses” and “Restructuring” lines of the Consolidated Statements of Income.

During 2008, certain actions were completed for amounts more favorable than originally estimated, resulting in an increase of $2,484 to income before income tax expense. The $2,484 consists of a credit for employee termination and other benefits and resulted from actual costs to settle obligations being lower than expected. The adjustment is reflected in the “Restructuring” line of the Consolidated Statements of Income.

During 2009, the Company recognized additional restructuring charges associated with plant closures announced in 2007, resulting in a decrease of $4,631 to income before income tax expense. In 2009, the Company recognized charges of $4,222 for accelerated depreciation of buildings and equipment associated with plant closures and $409 for other exit costs. These charges are reflected in the “Restructuring,” “Cost of sales” and “Selling, general and administrative expenses” lines of the Consolidated Statements of Income.