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These excerpts taken from the HBI 10-K filed Feb 19, 2008. Year
Ended July 1, 2006 Restructuring Actions
During year ended July 1, 2006, the Company approved a
series of actions to exit certain defined business activities
and to lower its cost structure. Each of these actions was to be
completed within a
12-month
period after being approved. The net impact of these actions was
to reduce income before income tax expense by $4,119 in the year
ended July 1, 2006. This charge is reflected in the
“Restructuring” line of Consolidated Statement of
Income.
This charge reflects the cost associated with terminating
482 employees (284 in the United States and 198 in Mexico)
and providing them with severance benefits in accordance with
existing benefit plans or local employment laws. As of
December 29, 2007, all of the employees have been
terminated and the severance obligation remaining in accrued
liabilities on the Consolidated Balance Sheet was $144.
Year Ended July 1, 2006 Restructuring Actions During year ended July 1, 2006, the Company approved a series of actions to exit certain defined business activities and to lower its cost structure. Each of these actions was to be completed within a 12-month period after being approved. The net impact of these actions was to reduce income before income tax expense by $4,119 in the year ended July 1, 2006. This charge is reflected in the “Restructuring” line of Consolidated Statement of Income. This charge reflects the cost associated with terminating 482 employees (284 in the United States and 198 in Mexico) and providing them with severance benefits in accordance with existing benefit plans or local employment laws. As of December 29, 2007, all of the employees have been terminated and the severance obligation remaining in accrued liabilities on the Consolidated Balance Sheet was $144. This excerpt taken from the HBI 10-Q filed Nov 5, 2007. 2007
Restructuring Actions
During the nine months ended September 29, 2007, the
Company, in connection with its consolidation and globalization
strategy, approved actions that will result in the closure of 14
manufacturing facilities and two distribution centers in the
United States, Canada, the Dominican Republic, Mexico, Brazil
and Puerto Rico. All actions are expected to be completed within
a 12-month
period. The net impact of these actions was to reduce income
before income tax expense by $15,786 and $64,838 in the third
quarter and nine months ended September 29, 2007,
respectively.
The following table summarizes the charges taken during the nine
months ended September 29, 2007 related to fiscal year 2007
restructuring actions and the related status as of
September 29, 2007. Any accrued amounts remaining as of
September 29, 2007 represent those cash expenditures
necessary to satisfy remaining obligations, which will be
primarily paid in the next 12 months.
The Company recognized $1,736 and $35,672 in the third quarter
and nine months ended September 29, 2007, respectively,
which represents costs associated with the planned termination
of 7,903 employees for employee termination and other
benefits recognized in accordance with benefit plans previously
communicated to the affected employee group. This charge is
reflected in the “Restructuring” line of the Condensed
Consolidated Statements of Income. As of September 29,
2007, 2,868 employees had been terminated and the severance
obligation remaining in accrued liabilities on the Condensed
Consolidated Balance Sheet was $26,934.
The Company recognized $13,728 and $28,844 in the third quarter
and nine months ended September 29, 2007, respectively,
which represents accelerated depreciation of buildings and
equipment for facilities that have been or will be closed in
connection with its consolidation and globalization strategy.
This charge is reflected in the “Cost of sales” and
“Selling, general and administrative expenses” lines
of the Condensed Consolidated Statements of Income.
Table of Contents
HANESBRANDS
Notes to Condensed Consolidated Financial Statements — (Continued) (dollars and shares in thousands, except per share data) (unaudited) This excerpt taken from the HBI 8-K filed Nov 29, 2006. 2004
Restructuring Actions
During 2004, the Company approved a series of actions to exit
certain defined business activities and lower its cost
structure. In 2004, these actions reduced income before income
taxes by $29,014.
During 2005, certain of these actions were completed for amounts
more favorable than originally estimated. As a result, costs
previously accrued were adjusted and resulted in an increase of
$2,352 to income before income taxes. The $2,352 is composed of
a credit for employee termination benefits and resulted from the
actual costs to settle termination obligations being lower than
expected and certain employees originally targeted for
termination not being severed as originally planned. This
adjustment is reflected in the “Restructuring” line of the Combined and Consolidated
Statement of Income.
During 2006, certain of these actions were completed for amounts
more favorable than originally estimated. As a result, costs
previously accrued were adjusted and resulted in an increase of
$963 to income before income taxes. The $963 is composed of a
credit for employee termination benefits and resulted from the
actual costs to settle termination obligations being lower than
expected. This adjustment is reflected in the “Restructuring” line of the Combined and
Consolidated Statement of Income.
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)
After combining the amounts recognized in 2004, 2005, and 2006,
the restructuring actions completed by the Company under these action
plans reduced income before income taxes by a total of $25,699.
This charge reflects the cost associated with terminating 4,425
employees and providing them with severance benefits in
accordance with existing benefit plans or local employment laws.
The specific location of these employees is summarized in a
table contained in this note. This cumulative charge is
reflected in the “Restructuring” line in the Combined and Consolidated
Statements of Income for 2004, 2005 and 2006. As of the end of
2006, all of the employees have been terminated and the
severance obligation remaining in accrued liabilities on the
Combined and Consolidated Balance Sheet was $172.
The following table summarizes the cumulative charges taken for
the restructuring actions approved during 2004 and the related status
as of July 1, 2006. Any accrued amounts remaining as of the
end of 2006 represent those cash expenditures necessary to
satisfy remaining obligations, which will be primarily paid in
the next year.
The following table summarizes the employee terminations by
location and business segment. All actions were completed as of
July 1, 2006.
This excerpt taken from the HBI 10-K filed Sep 28, 2006. 2004
Restructuring Actions
During 2004, the Company approved a series of actions to exit
certain defined business activities and lower its cost
structure. In 2004, these actions reduced income before income
taxes by $29,014 and decreased the operating results of the
Company’s business segments as follows:
Innerwear—$9,240; Outerwear—$5,706;
Hosiery—$2,482; International—$9,042; and
Corporate—$2,544.
During 2005, certain of these actions were completed for amounts
more favorable than originally estimated. As a result, costs
previously accrued were adjusted and resulted in an increase of
$2,352 to income before income taxes. The $2,352 is composed of
a credit for employee termination benefits and resulted from the
actual costs to settle termination obligations being lower than
expected and certain employees originally targeted for
termination not being severed as originally planned. This
adjustment is reflected in the “Charges for (income from)
exit activities” line of the Combined and Consolidated
Statement of Income and increased the operating results of the
Company’s business segments as follows:
Innerwear—$1,811; Outerwear—$71; Hosiery—$233;
and International—$237.
During 2006, certain of these actions were completed for amounts
more favorable than originally estimated. As a result, costs
previously accrued were adjusted and resulted in an increase of
$963 to income before income taxes. The $963 is composed of a
credit for employee termination benefits and resulted from the
actual costs to settle termination obligations being lower than
expected. This adjustment is reflected in the “Charges for
(income from) exit activities” line of the Combined and
Consolidated Statement of Income and
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)
increased the operating results of the Company’s business
segments as follows: Innerwear—$548; Outerwear—$358;
Hosiery—$17; and International—$40.
After combining the amounts recognized in 2004, 2005, and 2006,
the exit activities completed by the Company under these action
plans reduced income before income taxes by a total of $25,699.
This charge reflects the cost associated with terminating 4,425
employees and providing them with severance benefits in
accordance with existing benefit plans or local employment laws.
The specific location of these employees is summarized in a
table contained in this note. This cumulative charge is
reflected in the “Charges for (income from) exit
activities” line in the Combined and Consolidated
Statements of Income for 2004, 2005 and 2006. As of the end of
2006, all of the employees have been terminated and the
severance obligation remaining in accrued liabilities on the
Combined and Consolidated Balance Sheet was $172.
The following table summarizes the cumulative charges taken for
the exit activities approved during 2004 and the related status
as of July 1, 2006. Any accrued amounts remaining as of the
end of 2006 represent those cash expenditures necessary to
satisfy remaining obligations, which will be primarily paid in
the next year.
The following table summarizes the employee terminations by
location and business segment. All actions were completed as of
July 1, 2006.
This excerpt taken from the HBI 8-K filed Sep 5, 2006. 2004 Restructuring Actions During 2004, the Company approved a series of actions to exit certain defined business activities and lower its cost structure. Since approval, certain of these actions were completed for amounts more favorable than originally estimated. As a result, costs previously accrued were adjusted and resulted in increases of $682 and $155 to income before income taxes for the thirty-nine weeks ended April 2, 2005 and April 1, 2006, respectively. These adjustments consist of credits for employee termination benefits and resulted from the actual costs to settle termination obligations being lower than expected and certain employees originally targeted for termination not being severed as originally planned. These adjustments are reflected in the “Charges for (income from) exit activities” line of the Unaudited Interim Condensed Combined and Consolidated Statements of Income. The adjustment for the thirty-nine weeks ended April 2, 2005 increased the operating results of the Company’s business segments as follows: Innerwear—$450; Outerwear—$9; and International—$223. The adjustment for the thirty-nine weeks ended April 1, 2006 increased the operating results of the Company’s business segments as follows: Innerwear—$98; Hosiery—$17; and International—$40. The following table summarizes the cumulative charges taken for the exit activities approved during 2004 and the related status as of April 1, 2006. Any accrued amounts remaining as of April 1, 2006 represent those cash expenditures necessary to satisfy remaining obligations, which will be primarily paid in the next year.
F-53
Table of ContentsHANESBRANDS Notes to Unaudited Interim Condensed Combined and Consolidated Financial Statements—(Continued) (dollars in thousands, except per share data)
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