Hanesbrands Inc.
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
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ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 |
For the fiscal year ended December 31, 2006
or
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TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission file number: 333-137143
Full title of the plan and the address of the plan, if different from that of the issuer named below:
Hanesbrands Inc. Salaried Retirement Savings Plan of Puerto Rico
Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:
Hanesbrands
Inc.
1000 East Hanes Mill Road
Winston-Salem, North Carolina 27105
TABLE OF CONTENTS
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REPORTS OF
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM |
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2 |
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FINANCIAL STATEMENTS |
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5 |
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6 |
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SUPPLEMENTAL SCHEDULES |
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15 |
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16 |
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Exhibit 23.1 |
Exhibit 23.2 |
Note: Other schedules required by Section 2520.103-10 of the Department of Labors Rules and
Regulations For Reporting and Disclosure under the Employee Retirement Income Security Act of 1974
(ERISA) have been omitted because they are not applicable.
Report of Independent Registered Public Accounting Firm
Plan Committee
Hanesbrands Inc. Salaried Retirement Savings Plan of Puerto Rico
We have audited the accompanying statement of net assets available for benefits of Hanesbrands
Inc. Salaried Retirement Savings Plan of Puerto Rico as of December 31, 2006, and the related
statement of changes in net assets available for benefits for the year ended December 31, 2006.
These financial statements are the responsibility of the Plans management. Our responsibility is
to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with the standards of the Public Company Accounting Oversight
Board (United States). Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement. The
Plan is not required to have, nor were we engaged to perform an audit of its internal control over
financial reporting. Our audit included consideration of internal control over financial reporting
as a basis for designing audit procedures that are appropriate in the circumstances, but not for
the purpose of expressing an opinion on the effectiveness of the Plans internal control over
financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
As described in Note B, these financial statements and supplemental schedules were prepared on a
modified cash basis of accounting, which is a comprehensive basis of accounting other than
generally accepted accounting principles.
In our opinion, the financial statements referred to above present fairly, in all material
respects, the net assets available for benefits of the Plan at December 31, 2006, and the changes
in its net assets available for benefits for the year ended December 31, 2006 on the basis of
accounting described in Note B.
Our audit was conducted for the purpose of forming an opinion on the basic financial statements
taken as a whole. The accompanying supplemental schedules (modified cash basis) of assets (held at
end of year) and delinquent participant contributions as of December 31, 2006, are presented for
purposes of additional analysis and are not a required part of the basic financial statements but
are supplementary information required by the Department of Labors Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. These
supplemental schedules have been subjected to the auditing procedures applied in our audit of the
financial statements and, in our opinion, are fairly stated in all material respects in relation to
the financial statements taken as a whole.
As discussed in Note A, the Plan adopted Financial Accounting Standards Board Staff Position AAG
INV-1 and SOP 94-4-1, Reporting of Fully Benefit-Responsive Investment Contracts Held by Certain
Investment Companies Subject to the AICPA Investment Company Guide and Defined-Contribution Health
and Welfare and Pension Plans, as of December 31, 2006 and 2005.
/s/ GRANT THORNTON LLP
Greensboro, North Carolina
July 2, 2007
2
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Hanesbrands Inc.
Winston-Salem, North Carolina
We have audited the accompanying statement of net assets available for benefits
(modified cash basis) of the Hanesbrands Inc. Salaried Retirement Savings Plan of Puerto Rico
(formerly the Sara Lee Corporation Personal Products Retirement Savings Plan of Puerto Rico) (the
Plan) as of December 31, 2005. This financial statement is the responsibility of the Plans management. Our
responsibility is to express an opinion on this financial statement based on our audit.
We conducted our audit in accordance with the standards of the Public Company Accounting Oversight
Board (United States). Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in Note B, this financial statement was prepared on a modified cash basis of
accounting, which is a comprehensive basis of accounting other than U.S. generally accepted
accounting principles.
In our opinion, the financial statement referred to above presents fairly,
in all material respects, the net assets available for benefits of the Plan as of December 31,
2005, on the basis of accounting described in Note B.
/s/ Crowe Chizek and Company LLC
Crowe Chizek and Company LLC
Oak Brook, Illinois
June 16, 2006
3
Hanesbrands Inc. Salaried Retirement
Savings Plan of Puerto Rico
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
(MODIFIED CASH BASIS)
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December 31, |
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2006 |
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2005 |
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Assets |
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Investment (Notes B and C) |
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Plan interest in Hanesbrands Inc. Master
Investment Trust for Defined Contribution Plans at fair value |
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$ |
3,818,039 |
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$ |
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Plan
interest in Sara Lee Corporation Master
Investment Trust for Defined Contribution Plans at fair value |
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3,678,162 |
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NET
ASSETS AVAILABLE FOR BENEFITS AT FAIR VALUE |
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3,818,039 |
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3,678,162 |
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Adjustment from fair value to contract value for
interest in collective trust relating to fully benefit-
responsive investment contracts (Note A) |
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10,763 |
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4,100 |
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NET ASSETS AVAILABLE FOR BENEFITS |
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$ |
3,828,802 |
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$ |
3,682,262 |
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The
accompanying notes are an integral part of this statement.
4
Hanesbrands Inc. Salaried Retirement
Savings Plan of Puerto Rico
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
(MODIFIED CASH BASIS)
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For the Year |
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Ended |
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December 31, |
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2006 |
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Additions |
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Contributions |
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Company |
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$ |
101,080 |
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Participants |
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236,858 |
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Plan interest in Hanesbrands Inc. Master
Investment Trust for Defined Contribution
Plans net investment income and Sara Lee Corporation Master
Investment Trust for Defined Contribution Plans net income
(Note C) |
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285,327 |
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Total additions |
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623,265 |
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Deductions |
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Benefits paid to participants |
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476,725 |
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NET INCREASE |
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146,540 |
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Net assets available for benefits |
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Beginning of year |
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3,682,262 |
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End of year |
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$ |
3,828,802 |
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The accompanying notes are an integral part of this statement.
5
Hanesbrands Inc. Salaried Retirement
Savings Plan of Puerto Rico
NOTES TO FINANCIAL STATEMENTS
December 31, 2006 and 2005
NOTE A DESCRIPTION OF PLAN
The following brief description of the Hanesbrands Inc. Salaried Retirement Savings Plan of Puerto
Rico (the Plan) is provided for general information purposes only. Participants should refer to
the Plan document for a more complete description of the Plans provisions.
Hanesbrands Inc. (the Company) was spun off from Sara Lee Corporation (Sara Lee) on September
5, 2006. In connection with the spin off, Sara Lee contributed its branded apparel Americas and
Asia business to the Company and distributed all of the outstanding shares of the Companys common
stock to its stockholders on a pro rata basis. As a result of such distribution, Sara Lee ceased
to own any equity interest in the Company and the Company became an independent, separately traded,
publicly held company. Effective as of January 1, 2006, the Company became the sponsoring employer
of the Plan and the Plan name was changed from Sara Lee Corporation Personal Products Retirement
Savings Plan of Puerto Rico to Hanesbrands Inc. Salaried Retirement Savings Plan of Puerto Rico.
On July 24, 2006, the assets of the Plan were moved from the Sara Lee Corporation Master Investment
Trust for Defined Contribution Plans (the SLC Investment Trust) to the Hanesbrands Inc. Master
Investment Trust for Defined Contribution Plans (the HB Investment Trust).
As of April 1, 2006, certain assets of the Plan were transferred to the Hanesbrands Inc. Hourly
Retirement Savings Plan of Puerto Rico, for the benefit of eligible employees whose employment
status changed such that they were no longer eligible to participate
in the Plan. During 2006, the amount transferred from the Plan was
approximately $11,000.
General
The Plan is a defined contribution plan covering eligible salaried employees of participating
divisions and subsidiaries of the Company (the Employers) located in Puerto Rico who have
attained the age of 21 and completed 90 days of credited service (as defined in the Plan) and,
prior to July 24, 2006, were not eligible to participate in the Sara Lee Corporation 401(k)
Supplemental Savings Plan; bargaining unit employees are covered, however, only if the applicable
collective bargaining agreement provides for their participation in the Plan. The Plan is subject
to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA), as amended.
Contributions
Eligible employees can contribute between 1% and 10% of their pre-tax compensation, as defined in
the Plan, subject to certain limitations under the Internal Revenue Code (IRC) and the Puerto
Rico Internal Revenue Code of 1994 (PRIRC).
The Employers will contribute an amount equal to 100% of the portion of a participants pretax
contributions that does not exceed 2% of a participants eligible compensation subject to certain
limitations defined in the Plan document.
The Employers may also make a discretionary Employer contribution in the amount of 2% of a
participants eligible compensation.
6
Hanesbrands Inc. Salaried Retirement
Savings Plan of Puerto Rico
NOTES TO FINANCIAL STATEMENTS
December 31, 2006 and 2005
NOTE A DESCRIPTION OF PLAN Continued
Participant Accounts
Individual accounts are maintained for each of the Plans participants to reflect Employer
contributions, the participants contributions and any rollover contributions, as well as the
participants related share of the Plans income, losses and certain related administrative
expenses. Allocations of income and losses are made within each separate investment fund in
proportion to each participants investment in those funds. Allocations of certain related
administrative expenses are made based on the proportion that each participants account balance
has to the total of all participants account balances.
Vesting
Participants after-tax, pre-tax, rollover and Employer matching contributions are 100% vested at
all times. Vesting in the annual discretionary Employer contributions is 100% after completing
five years of service. Effective January 1, 2006, annual discretionary Employer contributions will
be 100% vested in the case of termination due to death, disability or normal retirement without
regard to years of service.
Forfeitures
If a participant terminates employment before his or her annual discretionary Employer contribution
account is fully vested, the portion of his or her annual discretionary Employer contribution
account which is not fully vested is forfeited. Forfeited balances will be used to reduce future
annual discretionary Employer contributions to the extent not used to pay administrative expenses
of the Plan.
Forfeitures for the plan year ended December 31, 2006 were $0. At December 31, 2006, no
forfeitures had been used to offset annual discretionary Employer contributions or to pay
administrative expenses of the Plan.
Investment Options
Participants may direct their total account balances among the various investment options currently
available to the Plan through the HB Investment Trust in 10% increments. Participants may change
their investment elections quarterly.
Benefit Payments
Upon termination of service due to death, disability, retirement or resignation/dismissal,
distribution of the vested balance in the participants accounts will be made to the participant
or, in the case of the participants death, to his/her beneficiary by a lump-sum payment in cash
(or stock, if elected, for amounts invested in the Hanesbrands Inc. Common Stock Fund or the Sara
Lee Corporation Common Stock Fund).
7
Hanesbrands Inc. Salaried Retirement
Savings Plan of Puerto Rico
NOTES TO FINANCIAL STATEMENTS
December 31, 2006 and 2005
NOTE A DESCRIPTION OF PLAN Continued
Withdrawals
Participants may withdraw all or a portion of their vested account balances, provided they have
attained age 59-1/2; participants may also withdraw their after-tax accounts at any time.
Participants who have an immediate and substantial financial need may take a hardship withdrawal
from their accounts, subject to certain limitations defined in the Plan document. No more than two
withdrawals of any type may be made in any calendar year.
New Accounting Pronouncements
As of December 31, 2006, the Plan adopted Financial Accounting Standards Board (FASB) Staff
Position FSP AAG INV-1 and Statement of Position No. 94-4-1, Reporting of Fully Benefit-Responsive
Investment Contracts Held by Certain Investment Companies Subject to the AICPA Investment Company
Guide and Defined-Contribution Health and Welfare and Pension Plans (the FSP). The FSP requires
that the Statement of Net Assets Available for Benefits present the fair value of the Plans
investments as well as the adjustment from fair value to contract value for the fully
benefit-responsive investment contracts. The Statement of Changes in Net Assets Available for
Benefits is prepared on a contract value basis for the fully benefit-responsive investment
contracts. The FSP was applied retroactively to the prior period presented on the Statement of Net
Assets Available for Benefits as of December 31, 2005.
In September 2006, the FASB issued Statement on Financial Accounting Standards No. 157 (SFAS 157),
Fair Value Measurements. SFAS 157 establishes a single authoritative definition of fair value, sets
out a framework for measuring fair value and requires additional disclosures about fair value
measurement. SFAS 157 is effective for financial statements issued for fiscal years beginning after
November 15, 2007. The Company is currently evaluating the
impact, if any, SFAS 157 will have on the Plans financial statements.
NOTE B SUMMARY OF ACCOUNTING POLICIES
Basis of Accounting
The accompanying financial statements have been prepared using the modified cash basis of
accounting, which is a comprehensive basis of accounting other than U.S. generally accepted
accounting principles. Under the modified cash basis of accounting, investments are recorded at
fair value (or contract value when appropriate), income is recorded as earned, and benefit
payments, administrative expenses, and contributions are recorded as the cash is paid or received.
In addition, purchases and sales of securities are recorded on a trade-date basis.
If the Plans financial statements had been prepared using the accrual basis of accounting in
accordance with U.S. generally accepted accounting principles, receivables (including Company and
participant contributions) of approximately $143,000 and $52,000 would have been recorded in the
accompanying statements of net assets available for benefits as of December 31, 2006 and 2005,
respectively.
8
Hanesbrands Inc. Salaried Retirement
Savings Plan of Puerto Rico
NOTES TO FINANCIAL STATEMENTS
December 31, 2006 and 2005
NOTE B SUMMARY OF ACCOUNTING POLICIES Continued
Use of Estimates
The preparation of financial statements requires the Plans management to make estimates and
assumptions that affect the reported amounts of assets and liabilities, and changes therein, and
disclosure of contingent assets and liabilities. Actual results could differ from these estimates.
Valuation of Investments
The
Plans sole investments are an interest in the HB Investment
Trust and the SLC Investment Trust. The Plans interest in the
HB Investment Trust and the SLC Investment Trust is based on the Plans relative aggregate
contributions, benefit payments and other relevant factors.
The
investments of each of the HB Investment Trust and the SLC Investment
Trust consist of investments in registered investment companies,
corporate common stocks, common/collective trusts and investment
contracts. Investments in registered investment companies and
corporate common stocks are valued using quoted market prices. Common/collective trusts are valued at fair value of
participant units owned by the HB Investment Trust and the SLC Investment Trust based on quoted
redemption values. Investment contracts are valued at contract value, as they are fully
benefit-responsive. Contract value represents the principal
balance of the underlying investment contracts, plus accrued interest at the stated contract rates,
less withdrawals and administrative charges by the insurance companies. There are no material
reserves against contract value for credit risk of the contract issuers or otherwise. Under the
terms of the contracts, the crediting interest rates are fixed rates negotiated by the Company with
the insurance companies. The average crediting interest rate of the investment contracts as of
December 31, 2006 and 2005 was approximately 5.21% and 4.80%, respectively. The average yield for
the investment contracts for the year ended December 31, 2006
was approximately 5.13%. Purchases and sales of securities in the HB
Investment Trust and the SLC Investment Trust are recorded on a
trade-date basis. Interest is recorded in the period earned.
Dividends are recorded on the ex-dividend date.
In general, the investments provided by the Plan are exposed to various risks, such as interest
rate, credit and overall market volatility risks. Due to the level of risk associated with certain
investments, it is reasonably possible that changes in the values of investments will occur in the
near term and that such changes could materially affect the amounts reported in the statements of
net assets available for benefits and participants individual account balances.
Administrative Expenses
Administrative expenses associated with the Plan are paid by the Plan unless paid by the Employers
at their discretion.
NOTE C PLAN INTEREST IN MASTER TRUSTS
The Plans investments are in the HB Investment Trust, which was established for the investment of
assets of the Plan and two other defined contribution plans sponsored
by the Company (the Participating Plans). Each
Participating Plan has an interest in the HB Investment Trust based
on each Participating Plans participants
account balances within each investment fund. The assets of the HB Investment Trust are held by The Northern
Trust Company.
9
Hanesbrands Inc. Salaried Retirement
Savings Plan of Puerto Rico
NOTES TO FINANCIAL STATEMENTS
December 31, 2006 and 2005
NOTE C PLAN INTEREST IN MASTER TRUSTS Continued
At
December 31, 2006, the Plans interest in the net assets of
the HB Investment Trust was approximately .71%. At December 31, 2005, the Plans interest in the net assets of the SLC
Investment Trust was approximately .33%. Investment income and certain administrative expenses
relating to the HB Investment Trust are allocated to the individual plans based on the balances
invested by each plan.
The Plans interest in the net assets of the HB Investment Trust and the SLC Investment Trust is included in the accompanying
statements of net assets available for benefits.
A summary of the net assets of the HB Investment Trust as of December 31, 2006 is as follows:
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Investments, at fair value |
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Corporate stocks common |
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$ |
31,136,725 |
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Investment in common/collective trusts |
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2,101,600 |
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Investment in registered
investment companies |
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272,356,469 |
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Participant loans |
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11,303,364 |
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Investment contracts |
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195,079,652 |
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Total investments |
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511,977,810 |
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Receivables |
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20,801,864 |
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Liabilities |
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(999,270 |
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Net assets
of HB Investment Trust at fair value |
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531,780,404 |
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Adjustment
from fair value to contract value for interest in collective trust
relating to fully benefit-responsive investment contracts |
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1,537,565 |
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Net assets
of HB Investment Trust |
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$ |
533,317,969 |
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10
Hanesbrands Inc. Salaried Retirement
Savings Plan of Puerto Rico
NOTES TO FINANCIAL STATEMENTS
December 31, 2006 and 2005
NOTE C PLAN INTEREST IN MASTER TRUSTS Continued
A summary of the net assets of the SLC Investment Trust as of December 31, 2005 is as follows:
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Allocated |
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Unallocated |
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Total |
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Investments, at fair value |
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Corporate stocks common |
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$ |
280,891,012 |
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$ |
175,111,216 |
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$ |
456,002,228 |
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Investment in common/collective trusts |
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34,250,541 |
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34,250,541 |
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Investment in registered
investment companies |
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464,336,886 |
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464,336,886 |
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Participant loans |
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30,544,811 |
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30,544,811 |
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Other |
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1,909,140 |
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1,909,140 |
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Investment contracts |
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291,995,298 |
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291,995,298 |
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Total investments |
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1,103,927,688 |
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175,111,216 |
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1,279,038,904 |
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Receivables |
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5,301,971 |
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1,911,391 |
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7,213,362 |
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Liabilities |
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(9,663 |
) |
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(1,908,448 |
) |
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(1,918,111 |
) |
Notes payable |
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(149,207,062 |
) |
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(149,207,062 |
) |
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Net assets
of SLC Investment Trust at fair value |
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$ |
1,109,219,996 |
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$ |
25,907,097 |
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$ |
1,135,127,093 |
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Adjustment
from fair value to contract value for interest in collective trust
relating to fully benefit-responsive investment contracts |
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1,265,231 |
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1,265,231 |
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Net assets of SLC Investment Trust |
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$ |
1,110,485,227 |
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$ |
25,907,097 |
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$ |
1,136,392,324 |
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11
Hanesbrands Inc. Salaried Retirement
Savings Plan of Puerto Rico
NOTES TO FINANCIAL STATEMENTS
December 31, 2006 and 2005
NOTE C PLAN INTEREST IN MASTER TRUSTS Continued
For the year ended December 31, 2006, net investment income was allocated to the three Participating Plans as
follows: (i) for the period from January 1, 2006 through July 23, 2006, net investment income was
allocated to two of the Participating Plans, including the Plan, from the SLC Investment Trust, and
(ii) for the period from July 24, 2006 through December 31, 2006, net investment income was
allocated to all three of the Participating Plans from the HB Investment Trust. The aggregate net
investment income allocated to the Participating Plans by the SLC Investment Trust and the HB
Investment Trust during such periods is as follows:
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Interest and dividend income |
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$ |
5,142,490 |
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Net appreciation in fair value
of investments |
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Corporate stocks common |
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7,491,208 |
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Investment in common/collective trusts |
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4,228,645 |
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Investment
in registered investment companies |
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28,426,184 |
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Net investment income |
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$ |
45,288,527 |
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At December 31, 2006, the HB Investment Trust held 772,091 shares of Hanesbrands Inc. common stock.
These shares had a fair value of $18,236,790 as of December 31, 2006.
At December 31, 2006, the HB Investment Trust held 757,483 shares of Sara Lee Corporation common
stock. These shares had a fair value of $12,899,936 as of December 31, 2006.
At December 31, 2005, the SLC Investment Trust held 23,796,701 shares of Sara Lee Corporation
common stock. These shares had a fair value of $449,757,649 as of December 31, 2005.
NOTE D PLAN TERMINATION
Although it has not expressed any intent to do so, the Company has the right under the Plan to
discontinue its contributions at any time and to terminate the Plan subject to the provisions of
ERISA. In the event of Plan termination, participants will become fully vested in their accounts.
NOTE E TAX STATUS
By letter dated September 10, 2003, the Internal Revenue Service (IRS) last determined that the
Plan, which was formerly known as the Sara Lee Corporation Personal Products Retirement Savings
Plan of Puerto Rico, (as amended) and trust met the qualification requirements set forth in
Sections 401(a) and
12
Hanesbrands Inc. Salaried Retirement
Savings Plan of Puerto Rico
NOTES TO FINANCIAL STATEMENTS
December 31, 2006 and 2005
NOTE E TAX STATUS Continued
501(a) of the IRC. The Company has requested a new determination letter from the IRS. A response
has not been received, although the Plan administrator believes that the Plan has been operated in
compliance with the IRC.
NOTE F PARTY-IN-INTEREST TRANSACTIONS
Certain assets of the HB Investment Trust are invested in investments managed by The Northern Trust
Company (the Trustee of the Plan); therefore, these transactions qualify as party-in-interest
transactions. Fees paid by the plan during 2006 for legal, accounting, and other professional
services rendered by parties in interest were based on customary and reasonable rates for such
services.
Certain Plan assets that are in the HB Investment Trust are invested in investments managed by the
Trustee of the Plan; therefore, these transactions qualify as party-in-interest. A portion of the
Plans assets (approximately 4.4% and 6.2% as of December 31, 2006 and December 31, 2005,
respectively) is invested in Hanesbrands Inc. common stock and Sara Lee Corporation common stock,
through participant-directed account balances.
NOTE G NONEXEMPT TRANSACTIONS
Certain 2006 employee contributions were temporarily held by the Company and not deposited to
employee accounts maintained by the trustee within the timeframe mandated by Department of Labor
regulations. The Company intends to contribute all late contributions to the Plan and reimburse
the Plan for interest on the funds borrowed.
NOTE H RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500
The following is a reconciliation of net assets available for benefits per the financial statements
at December 31, 2006 and 2005 to the Form 5500:
|
|
|
|
|
|
|
|
|
|
|
2006 |
|
|
2005 |
|
Net assets available for benefits per
the financial statements |
|
$ |
3,828,802 |
|
|
$ |
3,682,262 |
|
Adjustment
from fair value to contract value for fully benefit-responsive
investment contracts |
|
|
(10,763 |
) |
|
|
|
|
Amounts due to participants |
|
|
(151,732 |
) |
|
|
(83,961 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets available for benefits per the Form 5500 |
|
$ |
3,666,307 |
|
|
$ |
3,598,301 |
|
|
|
|
|
|
|
|
13
Hanesbrands Inc. Salaried Retirement
Savings Plan of Puerto Rico
NOTES TO FINANCIAL STATEMENTS
December 31, 2006 and 2005
NOTE H RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500 Continued
The following is a reconciliation of investment income according to the financial statements for
the year ended December 31, 2006 to the Form 5500:
|
|
|
|
|
Investment income per the financial statements |
|
$ |
285,327 |
|
Adjustment from fair value to contract value for fully
benefit-responsive investment contracts |
|
|
(10,763 |
) |
|
|
|
|
Investment income per the Form 5500 |
|
$ |
274,564 |
|
|
|
|
|
The following is a reconciliation of benefits paid to participants according to the financial
statements for the year ended December 31, 2006 to the Form 5500:
|
|
|
|
|
Benefits
paid per the financial statements |
|
$ |
476,725 |
|
Amounts allocated to withdrawing participants at |
|
|
|
|
December 31, 2006 |
|
|
151,732 |
|
December 31, 2005 |
|
|
(83,961 |
) |
|
|
|
|
|
|
|
|
|
Benefits paid per the Form 5500 |
|
$ |
544,496 |
|
|
|
|
|
Amounts allocated to withdrawing participants are recorded on the Form 5500 for benefit claims that
have been processed and approved for payment prior to December 31, but not yet paid as of that
date.
14
Hanesbrands Inc. Salaried Retirement
Savings Plan of Puerto Rico
SCHEDULE H, LINE 4a DELINQUENT DEPOSITS OF PARTICIPANT CONTRIBUTIONS
For the year ended December 31, 2006
Name of plan sponsor: Hanesbrands Inc.
Employer identification number: 20-3552316
Three-digit plan number: 004
|
|
|
|
|
Participant Contributions of the Current Plan Year Not Deposited
Into the Plan Within the Time Period Described in 29CFR 2510.3-102 |
|
$ |
40,940 |
|
|
Amount fully corrected under the DOLs Voluntary Fiduciary Correction
Program (VFC Program) and PTE 2002-51 |
|
|
|
|
|
Delinquent Deposits of Current Plan Year Participant Contributions
Constituting Prohibited Transactions |
|
|
40,940 |
(1) |
|
Delinquent Deposits of Prior Year Participant Contributions
Not Fully Corrected |
|
|
12,893 |
|
|
|
|
|
|
Total Delinquent Deposits of
Participant Contributions
Constituting Prohibited Transactions |
|
$ |
53,833 |
|
|
|
|
|
|
|
|
(1) |
|
Of this amount, $31,125 has been fully corrected outside the VFC Program. |
15
Hanesbrands Inc. Salaried Retirement
Savings Plan of Puerto Rico
SCHEDULE H, LINE 4i SCHEDULE OF ASSETS (HELD AT END OF YEAR)
December 31, 2006
Name of plan sponsor: Hanesbrands Inc.
Employer identification number: 20-3552316
Three-digit plan number: 004
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(e) |
|
|
|
(b) |
|
(c) |
|
(d) |
|
Current |
|
(a) |
|
Identity of issuer |
|
Description of investment |
|
Cost |
|
value |
|
* |
|
Hanesbrands Inc. |
|
Corporate stock - common |
|
** |
|
$ |
30,795 |
|
|
|
Sara Lee Corporation |
|
Corporate stock - common |
|
** |
|
|
4,777 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
35,572 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
|
Short-term Investments |
|
Common/collective trust |
|
** |
|
|
54,606 |
|
|
|
|
|
|
|
|
|
|
|
|
* |
|
Hanesbrands Fixed Income |
|
Investment contracts |
|
** |
|
|
2,374,894 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vanguard Balanced Index Fund |
|
Registered investment companies |
|
** |
|
|
159,006 |
|
|
|
Vanguard Index |
|
Registered investment companies |
|
** |
|
|
387,641 |
|
|
|
Vanguard Instl Index Fund |
|
Registered investment companies |
|
** |
|
|
560,018 |
|
|
|
Vanguard Star Fund |
|
Registered investment companies |
|
** |
|
|
257,065 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,363,730 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
3,828,802 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
|
Party-in-interest as defined by ERISA Section 3(14). |
|
** |
|
Cost information is not required for participant-directed investments and therefore is not
included. |
16
SIGNATURES
The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees
(or other persons who administer the employee benefit plan) have duly caused this annual report to
be signed on its behalf by the undersigned hereunto duly authorized.
|
|
|
|
|
Date: July 3, 2007 |
HANESBRANDS INC. SALARIED RETIREMENT
SAVINGS PLAN OF PUERTO RICO
|
|
|
By: |
/s/
Dale W. Boyles |
|
|
|
Dale W. Boyles |
|
|
|
Authorized Member of the Hanesbrands
Inc.
Employee Benefits Administrative Committee |
|
|
17
INDEX TO EXHIBITS
|
|
|
Exhibit |
|
|
Number |
|
Description |
23.1
|
|
Consent of Grant Thornton LLP |
|
23.2
|
|
Consent of Crowe Chizek and Company LLC |
Exhibit 23.1
Exhibit 23.1
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We have
issued our report dated July 2, 2007, accompanying the financial statements and schedules
included in the Annual Report of Hanesbrands Inc. Salaried Retirement Savings Plan of Puerto Rico
on Form 11-K for the year ended December 31, 2006. We hereby consent to the incorporation by
reference of said reports in the Registration Statement of Hanesbrands Inc. on Form S-8 (File No.
333-137143, effective September 6, 2006).
/s/ GRANT THORNTON LLP
Greensboro, North Carolina
July 2, 2007
Exhibit 23.2
Exhibit 23.2
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We consent to the incorporation by reference in Registration Statement No. 333-137143 on Form S-8
of the Hanesbrands Inc. Salaried Retirement Savings Plan of Puerto Rico (formerly the Sara Lee
Corporation Personal Products Retirement Savings Plan of Puerto Rico) of our report dated June 16,
2006, appearing in this Annual Report on Form 11-K of the Hanesbrands Inc. Salaried Retirement
Savings Plan of Puerto Rico for the year ended December 31, 2006.
/s/ Crowe Chizek and Company LLC
Crowe Chizek and Company LLC
Oak Brook, Illinois
July 2, 2007