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These excerpts taken from the HBI 10-K filed Feb 19, 2008. Cash Flow
Hedge
A hedge of a forecasted transaction or of the variability of
cash flows to be received or paid related to a recognized asset
or liability is designated as a cash flow hedge. The effective
portion of the change in the fair value of a derivative that is
designated as a cash flow hedge is recorded in the
“Accumulated other comprehensive loss” line of the
Consolidated Balance Sheets. When the hedged item affects the
income statement, the gain or loss included in accumulated other
comprehensive income (loss) is reported on the same line in the
Consolidated Statements of Income as the hedged item. In
addition, both the fair value of changes excluded from the
Company’s effectiveness assessments and the ineffective
portion of the changes in the fair value of derivatives used as
cash flow hedges are reported in the “Selling, general and
administrative expenses” line in the Consolidated
Statements of Income.
In December 2007, the Company acquired a 900-employee sheer
hosiery manufacturing operation in Las Lourdes, El Salvador
for $3,338 in cash and $629 in assumed liabilities, resulting in
$1,517 of goodwill.
In August 2007, the Company acquired the 1,300-employee textile
manufacturing operations in San Juan Opico, El Salvador of
Industrias Duraflex, S.A. de C.V., which had been a supplier to
the Company since the early 1990s, resulting in $27,293 of
goodwill.
Table of Contents
HANESBRANDS
Notes to Consolidated Financial Statements — (Continued) Year ended December 29, 2007, six months ended December 30, 2006 and years ended July 1, 2006 and July 2, 2005 (amounts in thousands, except per share data)
In November 2006, the Company acquired an Asian sewing
production facility for $6,666 in cash and the assumption of
$3,560 of debt. Goodwill of $2,766 was recognized as a result of
the purchase price exceeding the fair value of the assets and
liabilities acquired.
In September 2005, the Company acquired a domestic yarn and
textile production company for $2,436 in cash and the assumption
of $84,000 of debt. The fair value of the assets acquired, net
of liabilities assumed, approximated the purchase price and no
goodwill was recognized as a result of the transaction. In the
year ended July 2, 2005, purchases from the acquired
business accounted for approximately 18% of the Company’s
total cost of sales. Following the acquisition, substantially
all of the yarn and textiles produced by the acquired business
have been used in products produced by the Company, and those
that were not have been sold to third parties.
None of the preceding business acquisitions were determined by
the Company to be material, individually or in the aggregate, as
set forth in SFAS No. 141, Accounting for Business
Combinations (SFAS 141). As a result, the disclosures
and supplemental pro forma information required by SFAS 141
are not presented.
Cash Flow Hedge A hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability is designated as a cash flow hedge. The effective portion of the change in the fair value of a derivative that is designated as a cash flow hedge is recorded in the “Accumulated other comprehensive loss” line of the Consolidated Balance Sheets. When the hedged item affects the income statement, the gain or loss included in accumulated other comprehensive income (loss) is reported on the same line in the Consolidated Statements of Income as the hedged item. In addition, both the fair value of changes excluded from the Company’s effectiveness assessments and the ineffective portion of the changes in the fair value of derivatives used as cash flow hedges are reported in the “Selling, general and administrative expenses” line in the Consolidated Statements of Income.
In December 2007, the Company acquired a 900-employee sheer hosiery manufacturing operation in Las Lourdes, El Salvador for $3,338 in cash and $629 in assumed liabilities, resulting in $1,517 of goodwill. In August 2007, the Company acquired the 1,300-employee textile manufacturing operations in San Juan Opico, El Salvador of Industrias Duraflex, S.A. de C.V., which had been a supplier to the Company since the early 1990s, resulting in $27,293 of goodwill.
Table of ContentsHANESBRANDS Notes to Consolidated Financial Statements — (Continued) Year ended December 29, 2007, six months ended December 30, 2006 and years ended July 1, 2006 and July 2, 2005 (amounts in thousands, except per share data) In November 2006, the Company acquired an Asian sewing production facility for $6,666 in cash and the assumption of $3,560 of debt. Goodwill of $2,766 was recognized as a result of the purchase price exceeding the fair value of the assets and liabilities acquired. In September 2005, the Company acquired a domestic yarn and textile production company for $2,436 in cash and the assumption of $84,000 of debt. The fair value of the assets acquired, net of liabilities assumed, approximated the purchase price and no goodwill was recognized as a result of the transaction. In the year ended July 2, 2005, purchases from the acquired business accounted for approximately 18% of the Company’s total cost of sales. Following the acquisition, substantially all of the yarn and textiles produced by the acquired business have been used in products produced by the Company, and those that were not have been sold to third parties. None of the preceding business acquisitions were determined by the Company to be material, individually or in the aggregate, as set forth in SFAS No. 141, Accounting for Business Combinations (SFAS 141). As a result, the disclosures and supplemental pro forma information required by SFAS 141 are not presented.
This excerpt taken from the HBI 8-K filed Nov 29, 2006. Cash Flow
Hedge
A hedge of a forecasted transaction or of the variability of
cash flows to be received or paid related to a recognized asset
or liability is designated as a cash flow hedge. The effective
portion of the change in the fair value of a derivative that is
designated as a cash flow hedge is recorded in the
“Accumulated other comprehensive loss” line of the
Combined and Consolidated Balance Sheets. When the hedged item
affects the income statement, the gain or loss included in
accumulated other comprehensive income (loss) is reported on the
same line in the Combined and Consolidated Statements of Income
as the hedged item. In addition, both the fair value of changes
excluded from the Company’s effectiveness assessments and
the ineffective portion of the changes in the fair value of
derivatives used as cash flow hedges are reported in the
“Selling, general and administrative expenses” line in
the Combined and Consolidated Statements of Income.
All business acquisitions have been accounted for under the
purchase method. Cash, the fair value of other assets
distributed, securities issued unconditionally, and amounts of
consideration that are determinable at the date of acquisition
are included in determining the cost of an acquired business.
During the first quarter of 2006, the Company acquired a
domestic yarn and textile production company for $2,436 in cash
and the assumption of $84,000 of debt. The fair value of the
assets acquired, net of liabilities assumed, approximated the
purchase price based upon preliminary valuations and no goodwill
was recognized as a result of the transaction. In 2005,
purchases from the acquired business accounted for approximately
18% of the Company’s total cost of sales. Following the
acquisition, substantially all of the yarn and textiles produced
by the acquired business will be used in products produced by
the Company.
HANESBRANDS
Notes to
Combined and Consolidated Financial
Statements—(Continued)
July 3, 2004, July 2, 2005 and July 1, 2006
(dollars in thousands, except per share data)
This excerpt taken from the HBI 10-K filed Sep 28, 2006. Cash Flow
Hedge
A hedge of a forecasted transaction or of the variability of
cash flows to be received or paid related to a recognized asset
or liability is designated as a cash flow hedge. The effective
portion of the change in the fair value of a derivative that is
designated as a cash flow hedge is recorded in the
“Accumulated other comprehensive loss” line of the
Combined and Consolidated Balance Sheets. When the hedged item
affects the income statement, the gain or loss included in
accumulated other comprehensive income (loss) is reported on the
same line in the Combined and Consolidated Statements of Income
as the hedged item. In addition, both the fair value of changes
excluded from the Company’s effectiveness assessments and
the ineffective portion of the changes in the fair value of
derivatives used as cash flow hedges are reported in the
“Selling, general and administrative expenses” line in
the Combined and Consolidated Statements of Income.
All business acquisitions have been accounted for under the
purchase method. Cash, the fair value of other assets
distributed, securities issued unconditionally, and amounts of
consideration that are determinable at the date of acquisition
are included in determining the cost of an acquired business.
During the first quarter of 2006, the Company acquired a
domestic yarn and textile production company for $2,436 in cash
and the assumption of $84,000 of debt. The fair value of the
assets acquired, net of liabilities assumed, approximated the
purchase price based upon preliminary valuations and no goodwill
was recognized as a result of the transaction. In 2005,
purchases from the acquired business accounted for approximately
18% of the Company’s total cost of sales. Following the
acquisition, substantially all of the yarn and textiles produced
by the acquired business will be used in products produced by
the Company.
Table of Contents
HANESBRANDS
Notes to
Combined and Consolidated Financial
Statements—(Continued)
July 3, 2004, July 2, 2005 and July 1, 2006
(dollars in thousands, except per share data)
This excerpt taken from the HBI 8-K filed Sep 5, 2006. Cash Flow Hedge A hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability is designated as a cash flow hedge. The effective portion of the change in the fair value of a derivative that is designated as a cash flow hedge is recorded in the “Accumulated other comprehensive loss” line of the Combined and Consolidated Balance Sheets. When the hedged item affects the income statement, the gain or loss included in accumulated other comprehensive income (loss) is reported on the same line in the Combined and Consolidated Statements of Income as the hedged item. In addition, both the fair value of changes excluded from the Company’s effectiveness assessments and the ineffective portion of the changes in the fair value of derivatives used as cash flow hedges are reported in the “Selling, general and administrative expenses” line in the Combined and Consolidated Statements of Income. | EXCERPTS ON THIS PAGE:
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