FAIR VALUE MEASUREMENTS |
9 Months Ended |
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Oct. 03, 2026 | |
| Fair Value Disclosures [Abstract] | |
| FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Deferred Compensation Plan Investments In support of The William Carter Company Deferred Compensation Plan (the “Deferred Compensation Plan”), the Company invested comparable amounts in marketable securities, principally equity-based mutual funds, to approximate the participants’ investment return on employee deferrals of compensation. These investments were held in an irrevocable Rabbi Trust established to fund the Company’s obligations under the Deferred Compensation Plan and their use was restricted to meeting those obligations. In fiscal 2025, the Board approved the termination of the Deferred Compensation Plan, effective as of September 20, 2025. In October 2026, subsequent to the end of the third quarter of fiscal 2026, the Company liquidated the Rabbi Trust investments and settled the Deferred Compensation Plan obligations. The Rabbi Trust investments were included in Prepaid expenses and other current assets on the Company’s condensed consolidated balance sheets as of October 3, 2026 and January 3, 2026, and their aggregate fair values were $23.3 million and $21.7 million, respectively. As of September 27, 2025, the aggregate fair value of the Rabbi Trust investments was $21.0 million and was included in Other assets. The change in classification reflects the Company’s intent, following the termination of the Deferred Compensation Plan, to liquidate the Rabbi Trust investments to fund the settlement of Deferred Compensation Plan obligations. These investments are classified as Level 1 within the fair value hierarchy. The change in the aggregate fair values of marketable securities is due to the net activity of gains and losses and any contributions and distributions during the period. Gains on the investments in marketable securities were $0.4 million and $1.6 million for the third quarter and the first three quarters of fiscal 2026, respectively. Gains on the investments in marketable securities were $1.0 million and $1.5 million for the third quarter and the first three quarters of fiscal 2025, respectively. These amounts are included in Other expense (income), net on the Company’s condensed consolidated statement of operations. Borrowings As of October 3, 2026, the Company had no outstanding borrowings under its ABL facility. The fair value of the Company’s senior notes was $579.3 million, $592.9 million, and $500.2 million at October 3, 2026, January 3, 2026, and September 27, 2025, respectively. The fair value of these senior notes was estimated using observable market inputs, which incorporate quoted market prices of comparable borrowings, the Company’s credit risk, and current market conditions, and is therefore within Level 2 of the fair value hierarchy. The senior notes had a notional value and carrying value (gross of debt issuance costs) of $575.0 million, $575.0 million, and $500.0 million as of October 3, 2026, January 3, 2026, and September 27, 2025, respectively. Goodwill, Intangible, and Long-Lived Tangible Assets Some assets are not measured at fair value on a recurring basis but are subject to fair value adjustments only in certain circumstances. These assets can include goodwill, indefinite-lived intangible assets, and other long-lived assets that have been reduced to fair value when impaired. Assets that are written down to fair value when impaired are not subsequently adjusted to fair value unless further impairment occurs.
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