Assets and Liabilities of Businesses Held for Sale (Tables)
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6 Months Ended |
Jun. 28, 2025 |
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| Discontinued Operations and Disposal Groups [Abstract] |
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| Assets and Liabilities of Businesses Held for Sale |
Assets and liabilities of businesses classified as held for sale in the Condensed Consolidated Balance Sheets consist of the following: | | | | | | | | | | | | | | | | | | | June 28,
2025 | | December 28,
2024 | | June 29,
2024 | Global Champion business - discontinued operations | $ | — | | | $ | 38,841 | | | $ | 463,026 | | Champion Japan business - discontinued operations | 57,421 | | | 61,589 | | | 47,977 | | | U.S.-based outlet store business - discontinued operations | — | | | — | | | — | | | Current assets held for sale | $ | 57,421 | | | $ | 100,430 | | | $ | 511,003 | | | | | | | | Global Champion business - discontinued operations | $ | — | | | $ | 31,935 | | | $ | 891,063 | | Champion Japan business - discontinued operations | 23,412 | | | 27,658 | | | 28,415 | | | U.S.-based outlet store business - discontinued operations | — | | | — | | | 5,675 | | | Noncurrent assets held for sale | $ | 23,412 | | | $ | 59,593 | | | $ | 925,153 | | | | | | | | Global Champion business - discontinued operations | $ | — | | | $ | 10,716 | | | $ | 233,272 | | Champion Japan business - discontinued operations | 60,281 | | | 32,274 | | | 25,971 | | | U.S.-based outlet store business - discontinued operations | — | | | — | | | 6,991 | | | Current liabilities held for sale | $ | 60,281 | | | $ | 42,990 | | | $ | 266,234 | | | | | | | | Global Champion business - discontinued operations | $ | — | | | $ | 11,488 | | | $ | 105,678 | | Champion Japan business - discontinued operations | 13,582 | | | 21,099 | | | 20,926 | | | U.S.-based outlet store business - discontinued operations | — | | | — | | | 4,361 | | | Noncurrent liabilities held for sale | $ | 13,582 | | | $ | 32,587 | | | $ | 130,965 | |
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| Disposal Group, Including Discontinued Operation, Consideration Received |
The following table reconciles the net proceeds received from the Deferred Closing for the six months ended June 28, 2025, which are reported in the “Proceeds from disposition of businesses” line within investing activities in the Condensed Consolidated Statements of Cash Flows, to the loss recognized on the global Champion business, which is reported in the “Loss on sale of businesses and classification of assets held for sale” line within operating activities in the Condensed Consolidated Statements of Cash Flows: | | | | | | | | | | | | | Quarter Ended
June 28, 2025 | | Six Months Ended
June 28, 2025 | | Net cash proceeds received | $ | — | | | $ | 29,713 | | | Less: Net carrying value of deferred businesses | — | | | (29,528) | | | | | | | Less: Working capital and proceed adjustments | (1,131) | | | (6,278) | | Loss on global Champion business | $ | (1,131) | | | $ | (6,093) | |
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| Discontinued Operations Tables, Operating Results |
The operating results of discontinued operations only reflect revenues and expenses that are directly attributable to the global Champion, U.S.-based outlet store and Champion Japan businesses (the “Discontinued Operations”) that have been eliminated from continuing operations. Discontinued operations does not include any allocation of corporate overhead expense. The Company did not allocate interest expense to discontinued operations in the quarter ended June 28, 2025 and allocated interest expense to discontinued operations of approximately $17,605 in the quarter ended June 29, 2024. The Company allocated interest expense to discontinued operations of approximately $223 and $35,662 in the six months ended June 28, 2025 and June 29, 2024, respectively, resulting from the requirement to pay down a portion of the Company’s outstanding term debt under the Senior Secured Credit Facility with the net proceeds from the sale of the global Champion business. Interest expense was allocated to the global Champion business on a pro-rata basis for the expected amount of debt required to be repaid under the Senior Secured Credit Facility, compared to the total outstanding term debt subject to the repayment requirement. There was no interest allocated to the discontinued operations of the U.S.-based outlet store business or the Champion Japan business. The key components of the operating results of the Discontinued Operations are as follows: | | | | | | | | | | | | | | | | | | | | | | | | | Quarters Ended | | Six Months Ended | | June 28,
2025 | | June 29,
2024 | | June 28,
2025 | | June 29,
2024 | | Net sales | $ | 28,299 | | | $ | 380,000 | | | $ | 66,284 | | | $ | 791,526 | | | Cost of sales | 17,734 | | | 319,532 | | | 53,246 | | | 567,564 | | | Gross profit | 10,565 | | | 60,468 | | | 13,038 | | | 223,962 | | | Selling, general and administrative expenses | 13,108 | | | 152,158 | | | 33,073 | | | 298,960 | | | Impairment of goodwill | — | | | 2,500 | | | — | | | 2,500 | | | Loss on sale of businesses and classification of assets held for sale | 1,131 | | | 51,071 | | | 6,093 | | | 51,071 | | | Operating loss | (3,674) | | | (145,261) | | | (26,128) | | | (128,569) | | | Other expenses | 180 | | | 170 | | | 370 | | | 379 | | | Interest expense, net | 78 | | | 15,584 | | | 417 | | | 31,690 | | | Loss from discontinued operations before income taxes | (3,932) | | | (161,015) | | | (26,915) | | | (160,638) | | | Income tax (benefit) expense | (50) | | | 1,782 | | | 569 | | | 8,479 | | | Loss from discontinued operations, net of tax | $ | (3,882) | | | $ | (162,797) | | | $ | (27,484) | | | $ | (169,117) | |
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| Discontinued Operations Tables, Balance Sheets |
Assets and liabilities of discontinued operations of the global Champion, U.S.-based outlet store and Champion Japan businesses classified as held for sale in the Condensed Consolidated Balance Sheets as of June 28, 2025, December 28, 2024 and June 29, 2024 consist of the following: | | | | | | | | | | | | | | | | | | | June 28,
2025 | | December 28,
2024 | | June 29,
2024 | | Cash and cash equivalents | $ | 500 | | | $ | 500 | | | $ | 19,434 | | | Trade accounts receivable, net | 30,588 | | | 32,122 | | | 138,089 | | | Inventories | 19,145 | | | 63,058 | | | 361,549 | | | Other current assets | 7,188 | | | 14,681 | | | 35,800 | | Valuation allowance - Global Champion Business Deferred Closing | — | | | (8,554) | | | — | | | Valuation allowance - U.S.-based outlet store business | — | | | (1,377) | | | (43,869) | | | Current assets held for sale - discontinued operations | 57,421 | | | 100,430 | | | 511,003 | | | Property, net | 1,668 | | | 10,585 | | | 55,906 | | | Right-of-use assets | 12,129 | | | 39,137 | | | 146,439 | | | Trademarks and other identifiable intangibles, net | — | | | 273 | | | 267,610 | | | Goodwill | 5,316 | | | 4,907 | | | 446,677 | | | Deferred tax assets | — | | | — | | | 3,224 | | | Other noncurrent assets | 4,299 | | | 4,691 | | | 5,297 | | | | | | | | | Noncurrent assets held for sale - discontinued operations | 23,412 | | | 59,593 | | | 925,153 | | | Total assets of discontinued operations | $ | 80,833 | | | $ | 160,023 | | | $ | 1,436,156 | | | Accounts payable | $ | 40,042 | | | $ | 15,139 | | | $ | 149,509 | | | Accrued liabilities | 15,922 | | | 14,640 | | | 73,186 | | | Lease liabilities | 4,317 | | | 13,211 | | | 43,539 | | | Current liabilities held for sale - discontinued operations | 60,281 | | | 42,990 | | | 266,234 | | | Lease liabilities - noncurrent | 4,950 | | | 24,771 | | | 109,238 | | | Pension and postretirement benefits | 5,601 | | | 4,983 | | | 5,605 | | | Other noncurrent liabilities | 3,031 | | | 2,833 | | | 16,122 | | | Noncurrent liabilities held for sale - discontinued operations | 13,582 | | | 32,587 | | | 130,965 | | | Total liabilities of discontinued operations | $ | 73,863 | | | $ | 75,577 | | | $ | 397,199 | |
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| Discontinued Operations Tables, Cash Flow and Non-Cash Information |
The cash flows related to the discontinued operations have not been segregated and are included in the Condensed Consolidated Statements of Cash Flows. The following table presents cash flow and non-cash information for the Discontinued Operations: | | | | | | | | | | | | | | | | | | | | | | | | | Quarters Ended | | Six Months Ended | | June 28,
2025 | | June 29,
2024 | | June 28,
2025 | | June 29,
2024 | | Depreciation | $ | — | | | $ | 3,759 | | | $ | — | | | $ | 7,121 | | | Amortization | $ | — | | | $ | 2,721 | | | $ | — | | | $ | 5,453 | | | Capital expenditures | $ | — | | | $ | 2,662 | | | $ | — | | | $ | 4,251 | | | Impairment of goodwill | $ | — | | | $ | 2,500 | | | $ | — | | | $ | 2,500 | | | Inventory write-down charges | $ | — | | | $ | 66,263 | | | $ | — | | | $ | 66,263 | | | Loss on sale of businesses and classification of assets held for sale | $ | 1,131 | | | $ | 51,071 | | | $ | 6,093 | | | $ | 51,071 | | | Capital expenditures included in accounts payable at end of period | $ | — | | | $ | 185 | | | $ | — | | | $ | 185 | |
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