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(1)	Basis of Presentation

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

These condensed consolidated interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s 2019 Annual Report on Form 10-K. The year-end condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. The results of operations for any interim period are not necessarily indicative of the results of operations to be expected for the full year.

Liquidity and Impact of COVID-19

The Company relies on its cash flows generated from operations and the borrowing capacity under its credit facilities to meet the cash requirements of its business. The primary cash requirements of its business are payments to employees and vendors in the normal course of business, capital expenditures, maturities of debt and related interest payments, business acquisitions, contributions to its pension plans, repurchases of its stock, regular quarterly dividend payments and income tax payments. The rapid expansion of the COVID-19 global pandemic has resulted in a sharp decline in net sales and earnings in the first quarter of 2020, which has a corresponding impact on the Company’s liquidity. The Company is focused on preserving its liquidity and managing its cash flow during these unprecedented conditions with preemptive actions to enhance its ability to meet its short-term liquidity needs. Such actions include, but are not limited to, operating manufacturing and distribution facilities on a demand-adjusted basis; reducing discretionary spending such as media and marketing expenses; focused working capital management; reducing capital expenditures; suspending its share buyback program until further notice; reducing payroll costs, through employee furloughs and pay cuts; drawing down on its Revolving Loan Facility and amending certain existing debt facilities.

In March 2020, in response to the uncertainty of the circumstances surrounding the COVID-19 global pandemic, the Company drew down $ 630,000 under the Revolving Loan Facility as a precautionary measure, to provide the Company with additional financial flexibility to manage its business with a safety-first emphasis during the unknown duration and impact of the COVID-19 global pandemic. The Company subsequently repaid $ 490,000 of its borrowings under the Revolving Loan Facility in April 2020.

As of March 28, 2020 , the Company was in compliance with all financial covenants under its credit facilities and other outstanding indebtedness. In April 2020, given the rapidly changing environment and level of uncertainty being created by the COVID-19 global pandemic and the associated impact on future earnings, the Company amended its Senior Secured Credit Facility (as discussed in Note, “Debt and Notes Payable”) prior to any potential covenant violation in order to modify the financial covenants and to provide operating flexibility during the COVID-19 crisis. After obtaining the debt amendment, which provides relief from certain covenants for a 15-month period and adds additional financial and non-financial covenants, the Company expects to maintain compliance with its covenants for at least one year from the issuance of these financial statements based on its current expectations and forecasts. If economic conditions caused by the COVID-19 global pandemic worsen and the Company’s earnings and operating cash flows do not start to recover as currently estimated by management, this could impact the Company’s ability to maintain compliance with its amended financial covenants and require the Company to seek additional amendments to its Senior Secured Credit Facility. If the Company is not able to obtain such necessary additional amendments, this would lead to an event of default and, if not cured timely, its lenders could require the Company to repay its outstanding debt. In that situation, the Company may not be able to raise sufficient debt or equity capital, or divest assets, to refinance or repay the lenders.

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Revisions of Previously Issued Consolidated Financial Statements

As previously disclosed in the Company's Annual Report on Form 10-K for the year ended December 28, 2019, during the fourth quarter of 2019 the Company identified tax errors, which originated prior to 2017, in its previously issued 2018 and 2017 annual consolidated financial statements and quarterly condensed consolidated interim financial statements for each of the quarterly periods of 2018 and the first three quarterly periods of 2019. Although the Company assessed the materiality of the errors and concluded that the errors were not material to the previously issued annual or interim financial statements, the Company did revise its previously issued 2018 and 2017 annual financial statements to correct for such tax errors in connection with the filing of its 2019 Annual Report on Form 10-K, and disclosed that it would be revising its 2019 condensed consolidated interim financial statements in connection with the filing of its Quarterly Reports on Form 10-Q during 2020. In connection with such revision, the Company also corrected for certain other immaterial errors. In connection with the filing of this Quarterly Report on Form 10-Q, the Company has revised the accompanying condensed consolidated interim financial statements as of and for the quarter ended March 30, 2019 to correct for the impact of such errors, including the impact to retained earnings as of March 30, 2019 to correct for the errors which originated in periods prior to 2019, which primarily related to the tax errors. The accompanying footnotes have also been corrected to reflect the impact of the revisions of the previously filed condensed consolidated interim financial statements.

(2)	Recent Accounting Pronouncements

Financial Instruments - Credit Losses

In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which requires a financial asset measured at amortized cost basis to be presented at the net amount expected to be collected. The new accounting rules eliminate the probable initial recognition threshold and, instead, reflect an entity’s current estimate of all expected credit losses. The new accounting rules were effective for the Company in the first quarter of 2020 and applies to its trade receivables.

Under the new accounting rules, trade receivables are now evaluated on a collective (pool) basis and aggregated on the basis of similar risk characteristics. These classifications will be reassessed at each measurement date. A combination of factors, such as industry trends, customers’ financial strength, credit standing and payment and default history are considered in determining the appropriate estimate of expected credit losses. The adoption of the new accounting rules did not have a material impact on the Company’s financial condition, results of operations or cash flows.

Goodwill Impairment

In January 2017, the FASB issued ASU 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” The new accounting rules simplify how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test which previously measured a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount. The new accounting rules were effective for the Company in the first quarter of 2020. As a result of adopting the new rules, the Company will compare the estimated fair value of its reporting units to their respective carrying values when evaluating the recoverability of goodwill. If the carrying value of a reporting unit exceeds its fair value, an impairment charge will be recognized for the amount by which its carrying value exceeds the reporting unit’s fair value; however, the loss recognized will not exceed the goodwill allocated to the reporting unit. The adoption of the new accounting rules did not have an impact on the Company’s financial condition, results of operations or cash flows.

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Fair Value

In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820),” which modifies the disclosure requirements on fair value measurements. The new accounting rules were effective for the Company in the first quarter of 2020. The adoption of the new accounting rules did not have a material impact on the Company’s financial condition, results of operations or cash flows; however, its disclosures were updated upon adoption.

Retirement Benefits

In August 2018, the FASB issued ASU 2018-14, “Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20).” The new accounting rules expand disclosure requirements for employer sponsored defined benefit pension and other retirement plans. The new accounting rules were effective for the Company in the first quarter of 2020. The new accounting rules did not have a material impact on the Company’s financial condition, results of operations or cash flows; however, expanded disclosures will be required on the Company’s Annual Report on Form 10-K for the year ended January 2, 2021.

Internal-Use Software

In August 2018, the FASB issued ASU 2018-15, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 340-40),” which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The new accounting rules were effective for the Company in the first quarter of 2020. The adoption of the new accounting rules did not have a material impact on the Company’s financial condition, results of operations or cash flows.

Codification Improvements to Financial Instruments

In March 2020, the FASB issued ASU 2020-03, “Codification Improvements to Financial Instruments.” The new accounting rules clarify guidance around several subtopics by adopting enhanced verbiage to the following subtopics: fair value option disclosures, fair value measurement, investments - debt and equities securities, debt modifications and extinguishments, credit losses, and sales of financial assets. The standard was effective for the Company in the first quarter of 2020. The adoption of the new accounting rules did not have a material impact on the Company’s results of operations or cash flows.

Income Taxes

In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” The new accounting rules reduce complexity by removing specific exceptions to general principles related to intraperiod tax allocations, ownership changes in foreign investments, and interim period income tax accounting for year-to-date losses that exceed anticipated losses. The new accounting rules also simplify accounting for franchise taxes that are partially based on income, transactions with a government that result in a step up in the tax basis of goodwill, separate financial statements of legal entities that are not subject to tax, and enacted changes in tax laws in interim periods. The new accounting rules will be effective for the Company in the first quarter of 2021. The Company is currently in the process of evaluating the impact of adoption of the new accounting rules on the Company’s financial condition, results of operations, cash flows and disclosures.

Reference Rate Reform

In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” The new accounting rules provide optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform. The amendments in this standard can be applied anytime between the first quarter of 2020 and the fourth quarter of 2022. The Company is currently in the process of evaluating the impact of adoption of the new rules on the Company’s financial condition, results of operations, cash flows and disclosures.

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(3)	Revenue Recognition

Revenue is recognized when obligations under the terms of a contract with a customer are satisfied, which occurs at a point in time, upon either shipment or delivery to the customer. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods, which includes estimates for variable consideration. Variable consideration includes trade discounts, rebates, volume-based incentives, cooperative advertising and product returns, which are offered within contracts between the Company and its customers, employing the practical expedient for contract costs. Incidental items that are immaterial to the context of the contract are recognized as expense at the transaction date.

The following table presents the Company’s revenues disaggregated by the customer’s method of purchase:

	Quarters Ended
	March 28, 2020				March 30, 2019
Third-party brick-and-mortar wholesale	$	978,127			$	1,231,423
Consumer-directed	338,335				356,601
Total net sales	$	1,316,462			$	1,588,024

Revenue Sources

Third-Party Brick-and-Mortar Wholesale Revenue

Third-party brick-and-mortar wholesale revenue is primarily generated by sales of the Company’s products to retailers to support their brick-and-mortar operations. Also included within third-party brick-and-mortar wholesale revenues is royalty revenue from licensing agreements. The Company earns royalties 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 licensees.

Consumer-Directed Revenue

(4)	Acquisitions

Bras N Things

On February 12, 2018, the Company acquired 100 % of the outstanding equity of BNT Holdco Pty Limited (“Bras N Things”) for a total purchase price of A $ 498,236 (U.S. $ 391,572 ). During 2018, due to the final working capital adjustment, the purchase consideration was reduced by A$ 3,012 (U.S. $ 2,367 ), ultimately resulting in a revised purchase price of A$ 495,224 (U.S. $ 389,205 ), which included a cash payment of A $ 428,956 (U.S. $ 337,123 ), an indemnification escrow of A $ 31,988 (U.S. $ 25,140 ) and debt assumed of A $ 34,280 (U.S. $ 26,942 ). U.S. dollar equivalents are based on acquisition date exchange rates.

The Company funded the acquisition with a combination of short-term borrowings under its existing revolving loan facility (the “Revolving Loan Facility”) and cash on hand. During the third quarter of 2019, A $ 31,425 (U.S. $ 21,360 ) of the indemnification escrow, including interest earned, was paid to the sellers. The remaining indemnification escrow, held in one of the Company’s bank accounts, is recognized and classified as restricted cash, with the balance as of March 28, 2020 included in the “Other current assets” line of the Condensed Consolidated Balance Sheet.

Since February 12, 2018, goodwill related to the Bras N Things acquisition decreased by $ 792 as a result of measurement period adjustments, primarily related to working capital adjustments. The purchase price allocation was finalized in the first quarter of 2019.

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(5)	Stockholders’ Equity

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 issuable dilutive shares of common stock using the treasury stock method.

The reconciliation of basic to diluted weighted average shares outstanding is as follows:

	Quarters Ended
	March 28, 2020			March 30, 2019
Basic weighted average shares outstanding	359,017			364,570
Effect of potentially dilutive securities:
Stock options	—			471
Restricted stock units	—			254
Employee stock purchase plan and other	—			4
Diluted weighted average shares outstanding	359,017			365,299

For the quarter ended March 28, 2020, all potentially dilutive securities were excluded from the diluted earnings per share calculation because the Company incurred a net loss for this period and their inclusion would be anti-dilutive. Anti-dilutive securities excluded from the diluted earnings per share calculation for the quarter ended March 28, 2020 are not material. For the quarter ended March 30, 2019 , restricted stock units totaling five were excluded from the diluted earnings per share calculation because their effect would be anti-dilutive. For the quarter ended March 30, 2019 , there were no anti-dilutive stock options to purchase shares of common stock.

On February 6, 2020 , the Company’s Board of Directors approved a new share repurchase program for up to 40,000 shares to be repurchased in open market transactions, 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 the Company and certain of the Company’s officers and employees pursuant to the Company’s insider trading policy. Unless terminated earlier by the Company’s Board of Directors, the new program will expire when the Company has repurchased all shares authorized for repurchase under the new program. The new program replaced the Company’s previous share repurchase program for up to 40,000 shares that was originally approved in 2016. For the quarter ended March 28, 2020 , the Company entered into transactions to repurchase 14,464 shares at a weighted average repurchase price of $ 13.83 per share under the new program. The shares were repurchased at a total cost of $ 200,269 . The Company did not repurchase any shares under the previous share repurchase program during the quarter ended March 28, 2020 or March 30, 2019 . At March 28, 2020 , the remaining repurchase authorization under the current share repurchase program totaled 25,536 shares. The primary objective of the share repurchase program is to utilize excess cash to generate shareholder value.

(6)	Inventories

Inventories consisted of the following:  

	March 28, 2020				December 28, 2019				March 30, 2019
Raw materials	$	89,558			$	83,545			$	118,824
Work in process	124,725				136,592				170,746
Finished goods	1,749,474				1,685,708				1,943,149
	$	1,963,757			$	1,905,845			$	2,232,719

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(7)	Debt and Notes Payable

Debt and notes payable consisted of the following:  

	Interest Rate as of March 28, 2020		Principal Amount								Maturity Date
			March 28, 2020				December 28, 2019
Senior Secured Credit Facility:
Revolving Loan Facility	1.91 %		$	950,000			$	—			December 2022
Term Loan A	1.89 %		625,000				625,000				December 2022
Term Loan B	3.35 %		300,000				300,000				December 2024
Australian Revolving Loan Facility	1.67 %		30,817				—				July 2021
4.875% Senior Notes	4.88 %		900,000				900,000				May 2026
4.625% Senior Notes	4.63 %		900,000				900,000				May 2024
3.5% Senior Notes	3.50 %		556,793				558,847				June 2024
European Revolving Loan Facility	1.50 %		111,359				110,914				September 2020
Accounts Receivable Securitization Facility	2.20 %		152,153				—				March 2021
Total debt			4,526,122				3,394,761
Notes payable			2,170				4,244
Total debt and notes payable			4,528,292				3,399,005
Less long-term debt issuance costs			25,655				26,977
Less notes payable			2,170				4,244
Less current maturities			263,512				110,914
Total long-term debt			$	4,236,955			$	3,256,870

As of March 28, 2020 , the Company had $ 45,924 of borrowing availability under the $ 1,000,000 Revolving Loan Facility after taking into account $ 4,076 of standby and trade letters of credit issued and outstanding under this facility. In March 2020, in response to the uncertainty of the circumstances surrounding the COVID-19 global pandemic, the Company drew down $ 630,000 under the Revolving Loan Facility as a precautionary measure to provide the Company with additional financial flexibility to manage its business with a safety-first emphasis during the unknown duration and impact of the COVID-19 global pandemic. The Company subsequently repaid $ 490,000 of its borrowings under the Revolving Loan Facility in April 2020.

The Company entered into an accounts receivable securitization facility (the “Accounts Receivable Securitization Facility”) in November 2007. The Company’s maximum borrowing capacity under the Accounts Receivable Securitization Facility was $ 175,000 as of March 28, 2020 . Borrowings under the Accounts Receivable Securitization Facility are permitted only to the extent that the face of the receivables in the collateral pool, net of applicable reserves and other deductions, exceeds the outstanding loans and also subject to a fluctuating facility limit, not to exceed $ 225,000 . The Company had no borrowing availability under the Accounts Receivable Securitization Facility at March 28, 2020 .

The Company had $ 5,958 of borrowing availability under the Australian Revolving Loan Facility, no borrowing availability under the European Revolving Loan Facility and $ 134,716 of borrowing availability under other international credit facilities after taking into account outstanding borrowings and letters of credit outstanding under the applicable facilities at March 28, 2020 .

In March 2020, the Company amended the Accounts Receivable Securitization Facility. This amendment primarily decreased the fluctuating facility limit to $ 225,000 (previously $ 300,000 ) and extended the maturity date to March 2021 .

As of March 28, 2020 , the Company was in compliance with all financial covenants under its credit facilities and other outstanding indebtedness. The Company continues to monitor its covenant compliance carefully. Under the terms of its Senior Secured Credit Facility, among other financial and non-financial covenants, the Company is required to maintain a minimum interest coverage ratio and a maximum leverage ratio. The interest coverage ratio covenant is the ratio of the Company’s EBITDA for the preceding four fiscal quarters to its consolidated total interest expense and the maximum leverage ratio covenant is the ratio of the Company’s total debt to EBITDA for the preceding four fiscal quarters. EBITDA is defined as earnings before interest, income taxes, depreciation expense and amortization, as computed pursuant to the Senior Secured Credit Facility.

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In April 2020, given the rapidly changing environment and level of uncertainty being created by the COVID-19 global pandemic and the associated impact on future earnings, the Company amended its Senior Secured Credit Facility prior to any potential covenant violation in order to modify the financial covenants and to provide operating flexibility during the COVID-19 crisis. The amendment effects changes to certain provisions and covenants under the Senior Secured Credit Facility during the period beginning with the fiscal quarter ending June 27, 2020 and continuing through the fiscal quarter ending July 3, 2021 (such period of time, the “Covenant Relief Period”), including: (a) suspension of compliance with the maximum leverage ratio; (b) reduction of the minimum interest coverage ratio from 3.00 to 1.00 to (i) 2.00 to 1.00 for the fiscal quarters ending June 27, 2020 through April 3, 2021 and (ii) 2.25 to 1.00 for the fiscal quarter ending July 3, 2021; (c) a minimum last twelve months EBITDA covenant of $ 625,000 as of June 27, 2020, $ 505,000 as of September 26, 2020, $ 445,000 as of January 2, 2021, $ 435,000 as of April 3, 2021 and $ 505,000 as of July 3, 2021; (d) a minimum liquidity covenant of $ 300,000 , increasing to $ 400,000 upon certain conditions; (e) increased limitations on investments, acquisitions, restricted payments and the incurrence of indebtedness; and (f) anti-cash hoarding provisions. During the Covenant Relief Period, the applicable margin and applicable commitment fee margin will be calculated assuming the leverage ratio is greater than or equal to 4.50 to 1.00. The amendment also permanently amends the definition of “leverage ratio” for purposes of the financial covenant calculation to remove the maximum amount of cash allowed to be netted from the definition of “indebtedness” and to allow for the netting of cash from certain foreign subsidiaries. After obtaining the debt amendment, the Company expects to maintain compliance with its covenants for at least one year from the issuance of these financial statements based on its current expectations and forecasts. If economic conditions caused by the COVID-19 global pandemic worsen and the Company’s earnings and operating cash flows do not start to recover as currently estimated by management, this could impact the Company’s ability to maintain compliance with its amended financial covenants and require the Company to seek additional amendments to its Senior Secured Credit Facility. If the Company is not able to obtain such necessary additional amendments, this would lead to an event of default and, if not cured timely, its lenders could require the Company to repay its outstanding debt. In that situation, the Company may not be able to raise sufficient debt or equity capital, or divest assets, to refinance or repay the lenders.

(8)	Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss (“AOCI”) are as follows:

	Cumulative Translation Adjustment (1)				Cash Flow Hedges				Defined Benefit Plans				Income Taxes				Accumulated Other Comprehensive Loss
Balance at December 28, 2019	$	( 157,138	)		$	4,786			$	( 629,360	)		$	164,064			$	( 617,648	)
Amounts reclassified from accumulated other comprehensive loss	—				( 5,017		)		4,866				—				( 151		)
Current-period other comprehensive income (loss) activity	( 117,154		)		20,080				—				( 8,552		)		( 105,626		)
Balance at March 28, 2020	$	( 274,292	)		$	19,849			$	( 624,494	)		$	155,512			$	( 723,425	)

(1)	Cumulative Translation Adjustment includes translation adjustments and net investment hedges. See Note, “Financial Instruments and Risk Management” for additional disclosures about net investment hedges.

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The Company had the following reclassifications out of AOCI:

Component of AOCI		Location of Reclassification into Income		Amount of Reclassification from AOCI
				Quarters Ended
				March 28, 2020				March 30, 2019
Gain on foreign exchange contracts designated as cash flow hedges		Cost of sales		$	5,017			$	6,017
		Income tax		( 1,272		)		( 1,521		)
		Net of tax		3,745				4,496
Amortization of deferred actuarial loss and prior service cost		Other expenses		( 4,866		)		( 4,602		)
		Income tax		1,272				1,205
		Net of tax		( 3,594		)		( 3,397		)
Total reclassifications				$	151			$	1,099

(9)	Financial Instruments and Risk Management

The Company uses forward foreign exchange contracts to manage its exposures to movements in foreign exchange rates. The Company also uses a combination of derivative instruments and long-term debt to manage its exposure to foreign currency risk associated with the Company’s net investment in its European subsidiaries.

As of March 28, 2020 , the notional U.S. dollar equivalent of the Company’s derivative portfolio of forward foreign exchange contracts was $ 553,575 , consisting of contracts hedging exposures primarily related to the Euro, Australian dollar, Canadian dollar and Mexican peso. As of March 28, 2020 , the U.S. dollar equivalent carrying value of long-term debt designated as a partial European net investment hedge was $ 556,793 . The notional U.S. dollar equivalent of the Company’s cross-currency swap contracts, which are also designated as partial European net investment hedges, was $ 335,940 as of March 28, 2020 .

Fair Values of Derivative Instruments

The fair values of derivative financial instruments related to forward foreign exchange contracts and cross-currency swap contracts recognized in the Condensed Consolidated Balance Sheets of the Company were as follows:

	Balance Sheet Location		Fair Value
			March 28, 2020				December 28, 2019
Derivatives designated as hedging instruments:
Forward foreign exchange contracts	Other current assets		$	17,312			$	2,716
Cross-currency swap contracts	Other current assets		2,873				926
Cross-currency swap contracts	Other noncurrent assets		18,868				2,975
Derivatives not designated as hedging instruments:
Forward foreign exchange contracts	Other current assets		15,747				5,314
Total derivative assets			54,800				11,931
Derivatives designated as hedging instruments:
Forward foreign exchange contracts	Accrued liabilities		( 6		)		( 2,246		)
Derivatives not designated as hedging instruments:
Forward foreign exchange contracts	Accrued liabilities		( 3,263		)		( 1,147		)
Total derivative liabilities			( 3,269		)		( 3,393		)
Net derivative asset			$	51,531			$	8,538

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Cash Flow Hedges

The Company uses forward foreign exchange 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 Company expects to reclassify into earnings during the next 12 months a net gain from AOCI of approximately $ 21,396 . The Company is hedging exposure to the variability in future cash flows for forecasted transactions over the next 14 months.

The effect of cash flow hedge derivative instruments on the Condensed Consolidated Statements of Income and AOCI is as follows:

	Amount of Gain Recognized in AOCI on Derivative Instruments
	Quarters Ended
	March 28, 2020				March 30, 2019
Foreign exchange contracts	$	20,080			$	440

	Location of Gain Reclassified from AOCI  into Income		Amount of Gain Reclassified from AOCI into Income
			Quarters Ended
			March 28, 2020				March 30, 2019
Foreign exchange contracts (1)	Cost of sales		$	5,017			$	6,017

(1)	The Company does not exclude amounts from effectiveness testing for cash flow hedges that would require recognition into earnings based on changes in fair value.

	Quarters Ended
	March 28, 2020				March 30, 2019
Total cost of sales in which the effects of cash flow hedges are recorded	$	842,730			$	967,993

Net Investment Hedges

In July 2019, the Company entered into two pay-fixed rate, receive-fixed rate cross-currency swap contracts with a total notional amount of € 300,000 that were designated as hedges of a portion of the beginning balance of the Company’s net investment in its European subsidiaries. These cross-currency swap contracts, which mature on May 15, 2024, swap U.S. dollar-denominated interest payments for Euro-denominated interest payments, thereby economically converting a portion of the Company’s fixed-rate 4.625 % Senior Notes to a fixed-rate 2.3215 % Euro-denominated obligation.

In July 2019, the Company also designated its 3.5 % Senior Notes with a carrying value of € 500,000 , which is a nonderivative financial instrument, as a hedge of a portion of the beginning balance of the Company’s European net investment.

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The amount of after-tax gains included in AOCI in the Condensed Consolidated Balance Sheets related to derivative instruments and nonderivative financial instruments designated as net investment hedges and the amount of gains included in the “Interest expense, net” line in the Condensed Consolidated Statements of Income related to amounts excluded from the assessment of hedge effectiveness for derivative instruments designated as net investment hedges are as follows:

			Amount of Gain Recognized in AOCI
			Quarters Ended
			March 28, 2020				March 30, 2019
Euro-denominated long-term debt			$	2,658			$	—
Cross-currency swap contracts			11,732				—
Total			$	14,390			$	—

	Location of Gain Recognized in Income		Amount of Gain Recognized in Income (Amount Excluded from Effectiveness Testing)
			Quarters Ended
			March 28, 2020				March 30, 2019
Cross-currency swap contracts	Interest expense, net		$	1,947			$	—
			Quarters Ended
			March 28, 2020				March 30, 2019
Total interest expense, net in which the amounts excluded from effectiveness testing for net investment hedges are recorded			$	36,849			$	48,059

Mark to Market Hedges

A derivative used as a hedging instrument whose change in fair value is recognized to act as a hedge against changes in the values of the hedged item is designated as a mark to market hedge. The Company uses foreign exchange derivative contracts as hedges against the impact of foreign exchange fluctuations on existing accounts receivable and payable balances and intercompany 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. These contracts are not designated as hedges under the accounting standards and are recorded at fair value in the Condensed Consolidated Balance Sheets. Any gains or losses resulting from changes in fair value are recognized directly into earnings. Gains or losses on these contracts largely offset the net remeasurement gains or losses on the related assets and liabilities.

The effect of derivative contracts not designated as hedges on the Condensed Consolidated Statements of Income is as follows:

	Location of Gain (Loss) Recognized in Income on Derivatives		Amount of Gain (Loss) Recognized in Income
			Quarters Ended
			March 28, 2020				March 30, 2019
Foreign exchange contracts	Cost of sales		$	6,121			$	( 9,397	)
Foreign exchange contracts	Selling, general and administrative expenses		( 1,031		)		( 659		)
Total			$	5,090			$	( 10,056	)

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(10)	Fair Value of Assets and Liabilities

As of March 28, 2020 , 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 forward foreign exchange derivative contracts, cross-currency swap derivative contracts and deferred compensation plan liabilities. The fair values of forward foreign exchange derivative contracts are determined using the cash flows of the forward contracts, discount rates to account for the passage of time and current foreign exchange market data which are all based on inputs readily available in public markets and are categorized as Level 2. The fair values of cross-currency swap derivative contracts are determined using the cash flows of the swap contracts, discount rates to account for the passage of time, current foreign exchange and interest rate market data and credit risk, which are all based on inputs readily available in public markets and are categorized as Level 2. The fair value of deferred compensation plans is based on readily available current market data and is categorized as Level 2. The Company’s defined benefit pension plan investments are not required to be measured at fair value on a quarterly recurring basis.

There were no changes during the quarter ended March 28, 2020 to the Company’s valuation techniques used to measure asset and liability fair values on a recurring basis. As of and during the quarter ended March 28, 2020 , the Company did not have any non-financial assets or liabilities that were required to be measured at fair value on a recurring or non-recurring basis.

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

	Assets (Liabilities) at Fair Value as of March 28, 2020
	Total				Quoted Prices In Active Markets for Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
Forward foreign exchange contracts - assets	$	33,059			$	—			$	33,059			$	—
Cross-currency swap contracts - assets	21,741				—				21,741				—
Forward foreign exchange contracts - liabilities	( 3,269		)		—				( 3,269		)		—
	51,531				—				51,531				—
Deferred compensation plan liability	( 17,490		)		—				( 17,490		)		—
Total	$	34,041			$	—			$	34,041			$	—

 

	Assets (Liabilities) at Fair Value as of December 28, 2019
	Total				Quoted Prices In Active Markets for Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
Forward foreign exchange contracts - assets	$	8,030			$	—			$	8,030			$	—
Cross-currency swap contracts - assets	3,901				—				3,901				—
Forward foreign exchange contracts - liabilities	( 3,393		)		—				( 3,393		)		—
	8,538				—				8,538				—
Deferred compensation plan liability	( 31,221		)		—				( 31,221		)		—
Total	$	( 22,683	)		$	—			$	( 22,683	)		$	—

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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 March 28, 2020 and December 28, 2019 . The carrying amount of trade accounts receivable included allowance for doubtful accounts, chargebacks and other deductions of $ 46,079 and $ 33,228 as of March 28, 2020 and December 28, 2019 , respectively. The fair value of debt, which is classified as a Level 2 liability, was $ 4,408,038 and $ 3,560,623 as of March 28, 2020 and December 28, 2019 , respectively. Debt had a carrying value of $ 4,526,122 and $ 3,394,761 as of March 28, 2020 and December 28, 2019 , 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 amount of the Company’s notes payable, which is classified as a Level 2 liability, approximated fair value as of March 28, 2020 and December 28, 2019 , primarily due to the short-term nature of these instruments.

(11)	Income Taxes

The Company’s effective income tax rate was 14.5 % and 13.9 % for the quarters ended March 28, 2020 and March 30, 2019 , respectively. The effective tax rate was lower for the quarter ended March 30, 2019 due to the inclusion of a net discrete benefit of $ 3,026 .

During the quarter ended March 28, 2020 , the Internal Revenue Service closed the examination of the income tax years ended January 2, 2016 and December 31, 2016. The examination resulted in an immaterial adjustment which had been accrued as an uncertain tax benefit in a prior period. The Company remains subject to examinations in other jurisdictions and believes that it maintains appropriate uncertain tax benefit reserves, which are re-evaluated each quarter. Management believes it is reasonably possible that the amount of uncertain tax benefits may decrease by approximately $ 25,318 in the next twelve months based on approvals of certain filings by tax authorities with approximately $ 15,261 of the reduction impacting the effective tax rate.

As a result of the COVID-19 pandemic, governments are offering various relief mechanisms to taxpayers to assist with the business disruption. The measures vary by jurisdiction, but often include the ability to delay certain income tax payments. The Company intends to use these provisions where eligible. As of March 28, 2020 , the COVID-19 relief measures do not have a material impact on the effective tax rate or other income tax accounts, including income taxes payable.

(12)	Business Segment Information

The Company’s operations are managed and reported in three operating segments, each of which is a reportable segment for financial reporting purposes: Innerwear, Activewear and International. These segments are organized principally by product category and geographic location. Each segment has its own management team that is responsible for the operations of the segment’s businesses, but the segments share a common supply chain and media and marketing platforms. Other consists of the Company’s U.S. value-based (“outlet”) stores and U.S. hosiery business.

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

•	Innerwear includes sales of basic branded apparel products that are replenishment in nature under the product categories of men’s underwear, women’s panties, children’s underwear and socks, and intimate apparel, which includes bras and shapewear.

•	Activewear includes sales of basic branded products that are primarily seasonal in nature to both retailers and wholesalers, as well as licensed sports apparel and licensed logo apparel in collegiate bookstores, mass retailers and other channels.

•	International includes sales of products in all of the Company’s categories outside the United States, primarily in Europe, Australia, Asia, Latin America and Canada.

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The Company evaluates the operating performance of its segments based upon segment operating profit, which is defined as operating profit before general corporate expenses, restructuring and other action-related charges and amortization of intangibles. The accounting policies of the segments are consistent with those described in Note, “Summary of Significant Accounting Policies” to the Company’s consolidated financial statements included in its Annual Report on Form 10-K for the year ended December 28, 2019 .

	Quarters Ended
	March 28, 2020				March 30, 2019
Net sales:
Innerwear	$	422,402			$	475,945
Activewear	288,000				405,340
International	555,901				646,180
Other	50,159				60,559
Total net sales	$	1,316,462			$	1,588,024

	Quarters Ended
	March 28, 2020				March 30, 2019
Segment operating profit:
Innerwear	$	81,551			$	104,626
Activewear	8,108				43,593
International	52,018				99,773
Other	( 6,125		)		754
Total segment operating profit	135,552				248,746
Items not included in segment operating profit:
General corporate expenses	( 63,633		)		( 68,349		)
Restructuring and other action-related charges	( 29,199		)		( 21,373		)
Amortization of intangibles	( 8,590		)		( 9,380		)
Total operating profit	34,130				149,644
Other expenses	( 6,490		)		( 7,451		)
Interest expense, net	( 36,849		)		( 48,059		)
Income (loss) before income tax expense	$	( 9,209	)		$	94,134

For the quarter ended March 28, 2020 , the Company incurred pre-tax restructuring and other action-related charges of $ 29,199 , of which $ 21,813 is reported in the “Cost of sales” line and $ 7,386 is reported in the “Selling, general and administrative expenses” line in the Condensed Consolidated Statement of Income. For the quarter ended March 30, 2019 , the Company incurred pre-tax restructuring and other action-related charges of $ 21,373 , of which $ 17,692 is reported in the “Cost of sales” line and $ 3,681 is reported in the “Selling, general and administrative expenses” line in the Condensed Consolidated Statement of Income.

As of December 28, 2019 , the Company had an accrual of $ 7,120 for expected benefit payments related to actions taken in prior years. During the quarter ended March 28, 2020 , the Company approved actions related to corporate workforce reductions and incurred charges of $ 5,258 for employee termination and other benefits for employees affected by separation programs all of which are reflected in the “Selling, general and administrative expenses” line in the Condensed Consolidated Statement of Income. During quarter ended March 28, 2020 , benefit payments, other accrual adjustments and foreign currency adjustments of $ 2,616 have been made, resulting in an ending accrual of $ 9,762 , of which $ 8,741 and $ 1,021 is included in the “Accrued liabilities” and “Other noncurrent liabilities” lines of the Condensed Consolidated Balance Sheet, respectively.

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(13)	Revisions of Previously Issued Condensed Consolidated Interim Financial Statements

As described in Note, "Basis of Presentation," the following tables set forth the impact of error corrections on the Company’s condensed consolidated interim financial statements as of and for the periods ended March 30, 2019 , June 29, 2019 and September 28, 2019 by financial statement line item.

	Quarter Ended March 30, 2019
Condensed Consolidated Statement of Income Line Item	As Previously Reported				Adjustments				As Revised
Cost of sales	$	967,148			$	845			$	967,993
Gross profit	620,876				( 845		)		620,031
Selling, general and administrative expenses	472,838				( 2,451		)		470,387
Operating profit	148,038				1,606				149,644
Income before income tax expense	92,528				1,606				94,134
Net income	79,482				1,606				81,088
Earnings per share:
Basic	$	0.22			$	0.00			$	0.22
Diluted	$	0.22			$	0.00			$	0.22

	Quarter Ended March 30, 2019
Condensed Consolidated Statement of Comprehensive Income Line Item	As Previously Reported				Adjustments				As Revised
Net income	$	79,482			$	1,606			$	81,088
Translation adjustments	14,461				( 7,075		)		7,386
Total other comprehensive income	13,939				( 7,075		)		6,864
Comprehensive income	93,421				( 5,469		)		87,952

	March 30, 2019
Condensed Consolidated Balance Sheet Line Item	As Previously Reported				Adjustments				As Revised
Inventories	$	2,235,809			$	( 3,090	)		$	2,232,719
Other current assets	166,123				22,889				189,012
Total current assets	3,621,887				19,799				3,641,686
Deferred tax assets	257,393				( 43,665		)		213,728
Total assets	7,848,025				( 23,866		)		7,824,159
Accrued liabilities	552,012				16,438				568,450
Total current liabilities	2,182,435				16,438				2,198,873
Other noncurrent liabilities	286,625				64,743				351,368
Total liabilities	6,809,987				81,181				6,891,168
Retained earnings	1,296,158				( 105,047		)		1,191,111
Total stockholders’ equity	1,038,038				( 105,047		)		932,991
Total liabilities and stockholders’ equity	7,848,025				( 23,866		)		7,824,159

	Quarter Ended March 30, 2019
Condensed Consolidated Statement of Stockholders’ Equity Line Item	As Previously Reported				Adjustments				As Revised
Balance at December 29, 2018	$	970,283			$	( 98,157	)		$	872,126
Net income	79,482				1,606				81,088
Other comprehensive income	13,939				( 7,075		)		6,864
Cumulative effect of change in adoption of leases standard	7,977				( 1,421		)		6,556
Balance at March 30, 2019	1,038,038				( 105,047		)		932,991

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	Quarter Ended March 30, 2019
Condensed Consolidated Statement of Cash Flows Line Item	As Previously Reported				Adjustments				As Revised
Operating activities:
Net income	$	79,482			$	1,606			$	81,088
Adjustments to reconcile net income to net cash from operating activities:
Other	11,322				( 7,075		)		4,247
Changes in assets and liabilities:
Inventories	( 183,875		)		5,470				( 178,405		)
Other assets	( 31,629		)		( 743		)		( 32,372		)
Accrued liabilities and other	( 3,120		)		742				( 2,378		)
Net cash from operating activities	( 194,291		)		—				( 194,291		)

	Quarter Ended June 29, 2019
Condensed Consolidated Statement of Income Line Item	As Previously Reported				Adjustments				As Revised
Cost of sales	$	1,086,248			$	( 844	)		$	1,085,404
Gross profit	674,679				844				675,523
Selling, general and administrative expenses	440,662				5,261				445,923
Operating profit	234,017				( 4,417		)		229,600
Income before income tax expense	179,246				( 4,417		)		174,829
Net income	153,972				( 4,417		)		149,555
Earnings per share:
Basic	$	0.42			$	( 0.01	)		$	0.41
Diluted	$	0.42			$	( 0.01	)		$	0.41

	Six Months Ended June 29, 2019
Condensed Consolidated Statement of Income Line Item	As Previously Reported				Adjustments				As Revised
Cost of sales	$	2,053,396			$	1			$	2,053,397
Gross profit	1,295,555				( 1		)		1,295,554
Selling, general and administrative expenses	913,500				2,810				916,310
Operating profit	382,055				( 2,811		)		379,244
Income before income tax expense	271,774				( 2,811		)		268,963
Net income	233,454				( 2,811		)		230,643
Earnings per share:
Basic	$	0.64			$	( 0.01	)		$	0.63
Diluted	$	0.64			$	( 0.01	)		$	0.63

	Quarter Ended June 29, 2019
Condensed Consolidated Statement of Comprehensive Income Line Item	As Previously Reported				Adjustments				As Revised
Net income	$	153,972			$	( 4,417	)		$	149,555
Comprehensive income	149,165				( 4,417		)		144,748

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	Six Months Ended June 29, 2019
Condensed Consolidated Statement of Comprehensive Income Line Item	As Previously Reported				Adjustments				As Revised
Net income	$	233,454			$	( 2,811	)		$	230,643
Translation adjustments	11,259				( 7,075		)		4,184
Total other comprehensive income	9,132				( 7,075		)		2,057
Comprehensive income	242,586				( 9,886		)		232,700

	June 29, 2019
Condensed Consolidated Balance Sheet Line Item	As Previously Reported				Adjustments				As Revised
Inventories	$	2,233,760			$	( 10,561	)		$	2,223,199
Other current assets	152,925				23,371				176,296
Total current assets	3,656,442				12,810				3,669,252
Deferred tax assets	264,592				( 43,665		)		220,927
Total assets	7,876,892				( 30,855		)		7,846,037
Accrued liabilities	547,306				13,866				561,172
Total current liabilities	2,069,817				13,866				2,083,683
Other noncurrent liabilities	277,742				64,743				342,485
Total liabilities	6,742,042				78,609				6,820,651
Retained earnings	1,395,306				( 109,464		)		1,285,842
Total stockholders’ equity	1,134,850				( 109,464		)		1,025,386
Total liabilities and stockholders’ equity	7,876,892				( 30,855		)		7,846,037

	Quarter Ended June 29, 2019
Condensed Consolidated Statement of Stockholders’ Equity Line Item	As Previously Reported				Adjustments				As Revised
Balance at March 30, 2019	$	1,038,038			$	( 105,047	)		$	932,991
Net income	153,972				( 4,417		)		149,555
Balance at June 29, 2019	1,134,850				( 109,464		)		1,025,386

	Six Months Ended June 29, 2019
Condensed Consolidated Statement of Stockholders’ Equity Line Item	As Previously Reported				Adjustments				As Revised
Balance at December 29, 2018	$	970,283			$	( 98,157	)		$	872,126
Net income	233,454				( 2,811		)		230,643
Other comprehensive income	9,132				( 7,075		)		2,057
Cumulative effect of change in adoption of leases standard	7,977				( 1,421		)		6,556
Balance at June 29, 2019	1,134,850				( 109,464		)		1,025,386

	Six Months Ended June 29, 2019
Condensed Consolidated Statement of Cash Flows Line Item	As Previously Reported				Adjustments				As Revised
Operating activities:
Net income	$	233,454			$	( 2,811	)		$	230,643
Adjustments to reconcile net income to net cash from operating activities:
Other	12,550				( 7,075		)		5,475
Changes in assets and liabilities:
Inventories	( 178,453		)		12,941				( 165,512		)
Other assets	( 27,354		)		( 1,225		)		( 28,579		)
Accrued liabilities and other	( 23,405		)		( 1,830		)		( 25,235		)
Net cash from operating activities	( 57,363		)		—				( 57,363		)

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	Quarter Ended September 28, 2019
Condensed Consolidated Statement of Income Line Item	As Previously Reported				Adjustments				As Revised
Cost of sales	1,154,629				( 4,695		)		$	1,149,934
Gross profit	712,338				4,695				717,033
Selling, general and administrative expenses	442,582				7,380				449,962
Operating profit	269,756				( 2,685		)		267,071
Income before income tax expense	218,599				( 2,685		)		215,914
Net income	187,776				( 2,685		)		185,091
Earnings per share:
Basic	$	0.51			$	( 0.01	)		$	0.51
Diluted	$	0.51			$	( 0.01	)		$	0.51

	Nine Months Ended September 28, 2019
Condensed Consolidated Statement of Income Line Item	As Previously Reported				Adjustments				As Revised
Cost of sales	$	3,208,025			$	( 4,694	)		$	3,203,331
Gross profit	2,007,893				4,694				2,012,587
Selling, general and administrative expenses	1,356,082				10,190				1,366,272
Operating profit	651,811				( 5,496		)		646,315
Income before income tax expense	490,373				( 5,496		)		484,877
Net income	421,230				( 5,496		)		415,734
Earnings per share:
Basic	$	1.16			$	( 0.02	)		$	1.14
Diluted	$	1.15			$	( 0.02	)		$	1.14

	Quarter Ended September 28, 2019
Condensed Consolidated Statement of Comprehensive Income Line Item	As Previously Reported				Adjustments				As Revised
Net income	$	187,776			$	( 2,685	)		$	185,091
Comprehensive income	148,443				( 2,685		)		145,758

	Nine Months Ended September 28, 2019
Condensed Consolidated Statement of Comprehensive Income Line Item	As Previously Reported				Adjustments				As Revised
Net income	$	421,230			$	( 5,496	)		$	415,734
Translation adjustments	( 33,738		)		( 7,075		)		( 40,813		)
Total other comprehensive loss	( 30,201		)		( 7,075		)		( 37,276		)
Comprehensive income	391,029				( 12,571		)		378,458

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	September 28, 2019
Condensed Consolidated Balance Sheet Line Item	As Previously Reported				Adjustments				As Revised
Inventories	$	2,108,281			$	( 13,246	)		$	2,095,035
Other current assets	166,727				7,445				174,172
Total current assets	3,625,970				( 5,801		)		3,620,169
Deferred tax assets	257,314				( 43,665		)		213,649
Total assets	7,773,298				( 49,466		)		7,723,832
Accrued liabilities	589,992				( 2,060		)		587,932
Total current liabilities	2,096,904				( 2,060		)		2,094,844
Other noncurrent liabilities	265,804				64,743				330,547
Total liabilities	6,543,056				62,683				6,605,739
Retained earnings	1,528,258				( 112,149		)		1,416,109
Total stockholders’ equity	1,230,242				( 112,149		)		1,118,093
Total liabilities and stockholders’ equity	7,773,298				( 49,466		)		7,723,832

	Quarter Ended September 28, 2019
Condensed Consolidated Statement of Stockholders’ Equity Line Item	As Previously Reported				Adjustments				As Revised
Balance at June 29, 2019	$	1,134,850			$	( 109,464	)		$	1,025,386
Net income	187,776				( 2,685		)		185,091
Balance at September 28, 2019	1,230,242				( 112,149		)		1,118,093

	Nine Months Ended September 28, 2019
Condensed Consolidated Statement of Stockholders’ Equity Line Item	As Previously Reported				Adjustments				As Revised
Balance at December 29, 2018	$	970,283			$	( 98,157	)		$	872,126
Net income	421,230				( 5,496		)		415,734
Other comprehensive income	( 30,201		)		( 7,075		)		( 37,276		)
Cumulative effect of change in adoption of leases standard	7,977				( 1,421		)		6,556
Balance at September 28, 2019	1,230,242				( 112,149		)		1,118,093

	Nine Months Ended September 28, 2019
Condensed Consolidated Statement of Cash Flows Line Item	As Previously Reported				Adjustments				As Revised
Operating activities:
Net income	$	421,230			$	( 5,496	)		$	415,734
Adjustments to reconcile net income to net cash from operating activities:
Other	8,737				( 7,075		)		1,662
Changes in assets and liabilities, net of acquisition of businesses:
Inventories	( 72,096		)		15,626				( 56,470		)
Other assets	( 40,732		)		14,701				( 26,031		)
Accrued liabilities and other	14,243				( 17,756		)		( 3,513		)
Net cash from operating activities	244,700				—				244,700

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•	temporary closure of our owned and operated retail stores;

•	decreased customer traffic in retail stores;

•	changes in consumer confidence and consumer spending habits, including spending for the merchandise that we sell and negative trends in consumer purchasing patterns due to changes in consumers’ disposable income, credit availability and debt levels;

•	decreased discretionary consumer-directed channel spending independent of store closures;

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•	decreased wholesale channel sales and increased likelihood of wholesale customer financial distress, including requests for extended payment terms or potential payment defaults;

•	disruption to our global supply chain including the manufacturing, supply, distribution, transportation and delivery of our products;

•	decreased productivity due to travel bans, work-from-home policies or shelter-in-place orders; and

•	a slowdown in the U.S. and global economies, and an uncertain global economic outlook or a potential credit crisis.

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•	Total net sales in the first quarter of 2020 were $1.3 billion , compared with $1.6 billion in the same period of 2019 , representing a 17% decrease.

•

Operating profit decreased 77% to $34 million in the first quarter of 2020 , compared with $150 million in the same period of 2019 . As a percentage of sales, operating profit was 2.6% in the first quarter of 2020 compared to 9.4% in the same period of 2019 . Included within operating profit were restructuring and other action-related charges of $29 million and $21 million for the quarters ended March 28, 2020 and March 30, 2019 , respectively.

•	We estimate the impact of the COVID-19 global pandemic reduced net sales by approximately $181 million, operating profit by approximately $86 million and diluted earnings per share by approximately $0.20.

•	Operating cash flows increased $111 million in the first quarter of 2020 compared to the first quarter of 2019.

•	As part of our cash deployment strategy, prior to the global expansion of COVID-19, we entered into transactions to repurchase approximately 14.5 million shares at a weighted average repurchase price of $ 13.83 per share. The shares were repurchased at a total cost of $ 200 million.

•

In March 2020, in response to the uncertainty of the circumstances surrounding the COVID-19 global pandemic and as a precautionary measure to further strengthen our cash position, we drew down $630 million under the Revolving Loan Facility to provide us with additional financial flexibility to manage our business with a safety-first emphasis during the unknown duration and impact of the COVID-19 global pandemic. We subsequently repaid $490 million of this borrowing in April 2020.

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•	The disruption of our U.S. and International businesses related to the negative effects of the COVID-19 pandemic, including closures of retail stores owned and operated by us, as well as canceled orders from our wholesale brick- and-mortar customers, decreased sales an estimated $181 million;

•	The exit of our C9 Champion program at Target and the DKNY Intimates license in 2019 which, together, represented approximately $94 million of net sales in the first quarter of 2019; and

•	The unfavorable impact from foreign exchange rates in our International business of approximately $20 million.

•	Excluding the negative impact of the COVID-19 global pandemic, the exited programs and foreign exchange rates, total constant-currency net sales for the first quarter of 2020 would have increased 1.6%.

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(1)	Borrowing availability under the Accounts Receivable Securitization Facility is subject to a quarterly fluctuating facility limit, not to exceed $225 million , and permitted only to the extent that the face of the receivables in the collateral pool, net of applicable reserves and other deductions, exceeds the outstanding loans.

•	The negative impact of the COVID-19 global pandemic on our business as discussed above under “Impact of COVID-19 on Our Business”.

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•

For the quarter ended March 28, 2020 and prior to the expansion of COVID-19, we entered into transactions to repurchase approximately 14.5 million shares of our common stock at a total cost of $ 200 million. At March 28, 2020 , the remaining repurchase authorization under our current share repurchase program totaled approximately 25.5 million shares. While we may repurchase additional shares of our common stock in the future, the program has been suspended in connection with the amendment to our Senior Secured Credit Facility described above.

•	We have historically paid a regular quarterly dividend. The declaration of any future dividends and, if declared, the amount of any such dividends, will be subject to our actual future earnings, capital requirements, regulatory restrictions, debt covenants, other contractual restrictions and to the discretion of our Board of Directors.

•	We have principal and interest obligations under our debt and ongoing financial covenants under those debt facilities, even after taking into account recent amendments.

•	We have invested in efforts to accelerate worldwide omnichannel and global growth initiatives, as well as marketing and brand building. We anticipate capital expenditures to decrease for the remainder of the year compared to the prior year as we tightly manage spending to help mitigate the potential negative impact of the COVID-19 global pandemic on our business and liquidity.

•	We expect to continue to invest in efforts to improve operating efficiencies and lower costs.

•	We may pursue strategic business acquisitions in the future.

•	We made a contribution of $25 million to our U.S. pension plan in the quarter ended March 28, 2020 . We may also elect to make additional voluntary contributions.

•	We may increase or decrease the portion of the current-year income of our foreign subsidiaries that we remit to the United States, which could impact our effective income tax rate. Consistent with our investment strategy as it pertains to our historical foreign earnings as of December 28, 2019, we intend to remit historical foreign earnings totaling approximately $1.0 billion.

•

We are obligated to make installment payments over an eight-year period related to our transition tax liability resulting from the implementation of the Tax Act, which began in 2018, in addition to any estimated income taxes due based on current year taxable income. In the quarters ended March 28, 2020 and March 30, 2019 , we made no installment payments on our transition tax liability and have a remaining balance due of approximately $101 million to be paid in installment payments through 2025.

•	In March 2020, we drew down $630 million under our Revolving Loan Facility as a precautionary measure to provide us with additional financial flexibility to manage our business with a safety-first emphasis during the unknown duration and impact of the COVID-19 global pandemic. We subsequently repaid $490 million of this borrowing in April 2020.

•	We are making more than 320 million face masks and expect to make more than 20 million medical gowns for the U.S. government. We are also ramping up production to supply masks to large employers seeking to reopen business operations after being closed as a result of the COVID-19 global pandemic.

•	We expect the employee furloughs and pay cuts, as well as reductions in discretionary spending such as media and marketing expenses, to save approximately $200 million in 2020.

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