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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended October 2, 2021
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                     to                     
Commission file number: 001-32891
Hanesbrands Inc.
(Exact name of registrant as specified in its charter)
Maryland20-3552316
(State of incorporation)(I.R.S. employer identification no.)
1000 East Hanes Mill Road
Winston-Salem,North Carolina27105
(Address of principal executive office)(Zip code)
(336) 519-8080
(Registrant’s telephone number including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Stock, Par Value $0.01HBINew York Stock Exchange
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filerAccelerated filer
Non-accelerated filerSmaller reporting companyEmerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  
As of October 29, 2021, there were 349,204,513 shares of the registrant’s common stock outstanding.


TABLE OF CONTENTS
 
Page
Item 1.
Item 2.
Item 3.
Item 4.
PART II
Item 1.
Item 1A.
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.



FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q contains information that may constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 (the “Exchange Act”). Forward-looking statements include all statements that do not relate solely to historical or current facts, and can generally be identified by the use of words such as “may,” “believe,” “will,” “expect,” “project,” “estimate,” “intend,” “anticipate,” “plan,” “continue” or similar expressions. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. All statements regarding our intent, belief and current expectations about our strategic direction, prospects and future results are forward-looking statements. Management believes that these forward-looking statements are reasonable as and when made. However, caution should be taken not to place undue reliance on any such forward-looking statements because such statements speak only as of the date when made. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. In addition, forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience and our present expectations or projections. In particular, statements with respect to trends associated with our business, our Full Potential plan, our future financial performance and the potential effects of the ongoing global coronavirus (“COVID-19”) pandemic included in this Quarterly Report on Form 10-Q specifically appearing under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” include forward-looking statements.
More information on factors that could cause actual results or events to differ materially from those anticipated is included from time to time in our reports filed with the Securities and Exchange Commission (the “SEC”), including our Annual Report on Form 10-K for the year ended January 2, 2021, under the caption “Risk Factors,” and available on the “Investors” section of our corporate website, www.Hanes.com/investors. The contents of our corporate website are not incorporated by reference in this Quarterly Report on Form 10-Q.
1

PART I

Item 1.Financial Statements

HANESBRANDS INC.
Condensed Consolidated Statements of Income
(in thousands, except per share data)
(unaudited)

Quarters EndedNine Months Ended
October 2,
2021
September 26,
2020
October 2,
2021
September 26,
2020
Net sales$1,789,551 $1,691,863 $5,048,891 $4,438,016 
Cost of sales1,089,890 1,120,392 3,064,920 2,934,515 
Gross profit699,661 571,471 1,983,971 1,503,501 
Selling, general and administrative expenses465,015 382,384 1,341,809 1,064,328 
Operating profit234,646 189,087 642,162 439,173 
Other expenses1,811 4,898 6,227 15,652 
Interest expense, net40,860 43,500 127,760 120,602 
Income from continuing operations before income tax expense191,975 140,689 508,175 302,919 
Income tax expense15,228 22,464 55,161 43,008 
Income from continuing operations176,747 118,225 453,014 259,911 
Loss from discontinued operations, net of tax(24,970)(14,947)(435,823)(3,326)
Net income$151,777 $103,278 $17,191 $256,585 
Earnings (loss) per share - basic:
Continuing operations$0.50 $0.34 $1.29 $0.74 
Discontinued operations(0.07)(0.04)(1.24)(0.01)
Net income$0.43 $0.29 $0.05 $0.73 
Earnings (loss) per share - diluted:
Continuing operations$0.50 $0.34 $1.29 $0.73 
Discontinued operations(0.07)(0.04)(1.24)(0.01)
Net income$0.43 $0.29 $0.05 $0.72 

See accompanying notes to Condensed Consolidated Financial Statements.
2

HANESBRANDS INC.
Condensed Consolidated Statements of Comprehensive Income
(in thousands)
(unaudited)

Quarters EndedNine Months Ended
October 2,
2021
September 26,
2020
October 2,
2021
September 26,
2020
Net income$151,777 $103,278 $17,191 $256,585 
Other comprehensive income (loss):
Translation adjustments(42,330)23,678 (78,762)1,557 
Unrealized gain (loss) on qualifying cash flow hedges, net of tax of $(2,637), $3,035, $(8,953) and $(214), respectively7,124 (11,250)18,520 (9,644)
Unrecognized income from pension and postretirement plans, net of tax of $(1,647), $(1,396), $(5,262) and $(4,462), respectively4,806 3,798 15,873 10,952 
Total other comprehensive income (loss)(30,400)16,226 (44,369)2,865 
Comprehensive income (loss)$121,377 $119,504 $(27,178)$259,450 

See accompanying notes to Condensed Consolidated Financial Statements.
3

HANESBRANDS INC.
Condensed Consolidated Balance Sheets
(in thousands, except share and per share data)
(unaudited)

October 2,
2021
January 2,
2021
September 26,
2020
Assets
Cash and cash equivalents$873,628 $900,615 $716,921 
Trade accounts receivable, net928,039 768,221 921,434 
Inventories1,629,506 1,367,758 1,996,851 
Other current assets172,617 158,700 191,541 
Current assets of discontinued operations304,124 234,086 279,331 
Total current assets3,907,914 3,429,380 4,106,078 
Property, net440,804 477,821 484,939 
Right-of-use assets372,212 432,631 422,543 
Trademarks and other identifiable intangibles, net1,227,457 1,293,847 1,230,757 
Goodwill1,136,173 1,158,938 1,154,449 
Deferred tax assets327,196 367,976 193,015 
Other noncurrent assets51,049 64,773 93,849 
Noncurrent assets of discontinued operations 494,501 482,911 
Total assets$7,462,805 $7,719,867 $8,168,541 
Liabilities and Stockholders’ Equity
Accounts payable$1,239,960 $891,868 $1,088,556 
Accrued liabilities718,545 609,864 590,778 
Lease liabilities122,545 136,510 143,753 
Notes payable  11 
Current portion of long-term debt37,500 263,936  
Current liabilities of discontinued operations299,498 222,183 208,506 
Total current liabilities2,418,048 2,124,361 2,031,604 
Long-term debt3,626,547 3,739,434 3,972,212 
Lease liabilities - noncurrent276,595 331,577 317,834 
Pension and postretirement benefits321,323 381,457 324,683 
Other noncurrent liabilities183,723 216,091 256,238 
Noncurrent liabilities of discontinued operations 112,989 116,437 
Total liabilities6,826,236 6,905,909 7,019,008 
Stockholders’ equity:
Preferred stock (50,000,000 authorized shares; $.01 par value)
Issued and outstanding — None   
Common stock (2,000,000,000 authorized shares; $.01 par value)
Issued and outstanding — 349,204,407, 348,802,220 and 348,288,056, respectively3,492 3,488 3,483 
Additional paid-in capital316,112 307,883 306,157 
Retained earnings928,293 1,069,546 1,454,676 
Accumulated other comprehensive loss(611,328)(566,959)(614,783)
Total stockholders’ equity636,569 813,958 1,149,533 
Total liabilities and stockholders’ equity$7,462,805 $7,719,867 $8,168,541 


See accompanying notes to Condensed Consolidated Financial Statements.
4


HANESBRANDS INC.
Condensed Consolidated Statements of Stockholders’ Equity
(in thousands, except per share data)
(unaudited)

 Common StockAdditional Paid-In CapitalRetained EarningsAccumulated Other Comprehensive LossTotal
 SharesAmount
Balances at July 3, 2021349,115 $3,491 $310,148 $829,479 $(580,928)$562,190 
Net income— — — 151,777 — 151,777 
Dividends ($0.15 per common share)— — — (52,963)— (52,963)
Other comprehensive loss— — — — (30,400)(30,400)
Stock-based compensation— — 6,079 — — 6,079 
Net exercise of stock options, vesting of restricted stock units and other89 1 (115)— — (114)
Balances at October 2, 2021349,204 $3,492 $316,112 $928,293 $(611,328)$636,569 

 Common StockAdditional Paid-In CapitalRetained EarningsAccumulated Other Comprehensive LossTotal
 SharesAmount
Balances at January 2, 2021348,802 $3,488 $307,883 $1,069,546 $(566,959)$813,958 
Net income— — — 17,191 — 17,191 
Dividends ($0.45 per common share)— — — (158,444)— (158,444)
Other comprehensive loss— — — — (44,369)(44,369)
Stock-based compensation— — 9,887 — — 9,887 
Net exercise of stock options, vesting of restricted stock units and other402 4 (1,658)— — (1,654)
Balances at October 2, 2021349,204 $3,492 $316,112 $928,293 $(611,328)$636,569 









See accompanying notes to Condensed Consolidated Financial Statements.
5

HANESBRANDS INC.
Condensed Consolidated Statements of Stockholders’ Equity (Continued)
(in thousands, except per share data)
(unaudited)
 Common StockAdditional Paid-In CapitalRetained EarningsAccumulated Other Comprehensive LossTotal
 SharesAmount
Balances at June 27, 2020348,093 $3,481 $302,522 $1,404,326 $(631,009)$1,079,320 
Net income— — — 103,278 — 103,278 
Dividends ($0.15 per common share)— — — (52,928)— (52,928)
Other comprehensive income— — — — 16,226 16,226 
Stock-based compensation— — 4,538 — — 4,538 
Net exercise of stock options, vesting of restricted stock units and other195 2 (903)— — (901)
Balances at September 26, 2020348,288 $3,483 $306,157 $1,454,676 $(614,783)$1,149,533 

 Common StockAdditional Paid-In CapitalRetained EarningsAccumulated Other Comprehensive LossTotal
 SharesAmount
Balances at December 28, 2019362,449 $3,624 $304,395 $1,546,224 $(617,648)$1,236,595 
Net income— — — 256,585 — 256,585 
Dividends ($0.45 per common share)— — — (160,264)— (160,264)
Other comprehensive income— — — — 2,865 2,865 
Stock-based compensation— — 13,572 — — 13,572 
Net exercise of stock options, vesting of restricted stock units and other303 4 445 — — 449 
Share repurchases(14,464)(145)(12,255)(187,869)— (200,269)
Balances at September 26, 2020348,288 $3,483 $306,157 $1,454,676 $(614,783)$1,149,533 


See accompanying notes to Condensed Consolidated Financial Statements.
6

HANESBRANDS INC.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)

Nine Months Ended
October 2, 2021(1)
September 26, 2020(1)
Operating activities:
Net income$17,191 $256,585 
Adjustments to reconcile net income to net cash from operating activities:
Depreciation63,183 67,676 
Amortization of acquisition intangibles15,696 18,503 
Other amortization8,610 8,091 
Impairment of intangible assets and goodwill163,047 20,319 
Loss on classification of assets held for sale266,742  
Amortization of debt issuance costs10,250 8,303 
Other(1,888)25,658 
Changes in assets and liabilities:
Accounts receivable(201,925)(175,879)
Inventories(292,465)(259,367)
Other assets7,042 (43,359)
Accounts payable391,034 189,566 
Accrued pension and postretirement benefits(40,468)(18,965)
Accrued liabilities and other121,327 134,091 
Net cash from operating activities527,376 231,222 
Investing activities:
Capital expenditures(55,320)(49,033)
Proceeds from sales of assets2,479 331 
Other8,437 7,618 
Net cash from investing activities(44,404)(41,084)
Financing activities:
Repayments on Term Loan Facilities(315,625) 
Borrowings on Accounts Receivable Securitization Facility 227,061 
Repayments on Accounts Receivable Securitization Facility (227,061)
Borrowings on Revolving Loan Facilities 1,638,000 
Repayments on Revolving Loan Facilities (1,756,189)
Borrowings on Senior Notes 700,000 
Borrowings on International Debt 31,222 
Repayments on International Debt (36,383)
Borrowings on notes payable109,397 166,558 
Repayments on notes payable(109,597)(166,108)
Share repurchases (200,269)
Cash dividends paid(157,099)(158,132)
Other(3,000)(15,258)
Net cash from financing activities(475,924)203,441 
Effect of changes in foreign exchange rates on cash(27,207)9,052 
Change in cash, cash equivalents and restricted cash(20,159)402,631 
Cash, cash equivalents and restricted cash at beginning of year910,603 329,923 
Cash, cash equivalents and restricted cash at end of period890,444 732,554 
Less restricted cash at end of period 1,073 
Cash and cash equivalents at end of period$890,444 $731,481 
Balances included in the Condensed Consolidated Balance Sheets:
Cash and cash equivalents$873,628 $716,921 
Cash and cash equivalents included in current assets of discontinued operations16,816 14,560 
Cash and cash equivalents at end of period$890,444 $731,481 

(1)The cash flows related to discontinued operations have not been segregated and remain included in the major classes of assets and liabilities. Accordingly, the Condensed Consolidated Statements of Cash Flows include the results of continuing and discontinued operations.
Capital expenditures included in accounts payable at October 2, 2021 and January 2, 2021 were $4,569 and $17,931, respectively. For the nine months ended October 2, 2021 and September 26, 2020, right-of-use assets obtained in exchange for lease obligations were $46,039 and $39,532, respectively.
See accompanying notes to Condensed Consolidated Financial Statements.
7

HANESBRANDS INC.
Notes to Condensed Consolidated Financial Statements
(amounts in thousands, except per share data)
(unaudited)


(1)    Basis of Presentation
These statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) and, in accordance with those rules and regulations, do not include all information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Management believes that the disclosures made are adequate for a fair statement of the results of operations, financial condition and cash flows of Hanesbrands Inc. and its consolidated subsidiaries (the “Company” or “Hanesbrands”). In the opinion of management, the condensed consolidated interim financial statements reflect all adjustments, which consist only of normal recurring adjustments, necessary to state fairly the results of operations, financial condition and cash flows for the interim periods presented herein. The preparation of condensed consolidated interim financial statements in conformity with GAAP requires management to make use of estimates and assumptions that affect the reported amounts and disclosures. Actual results may vary from these estimates.
These condensed consolidated interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended January 2, 2021. The results of operations for any interim period are not necessarily indicative of the results of operations to be expected for the full year.
In the first quarter of 2021, the Company announced that as part of its strategic plan, it was exploring alternatives for its European Innerwear business and subsequently reached the decision to exit this business. The Company determined that its European Innerwear business met held-for-sale and discontinued operations accounting criteria at the end of the first quarter of 2021. Accordingly, the Company began to separately report the results of its European Innerwear business as discontinued operations in its Condensed Consolidated Statements of Income, and to present the related assets and liabilities as held for sale in the Condensed Consolidated Balance Sheets. These changes have been applied to all periods presented. Unless otherwise noted, discussion within these notes to the condensed consolidated interim financial statements relates to continuing operations. See note “Discontinued Operations” for additional information.
(2)    Recent Accounting Pronouncements
Income Taxes
In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” The new accounting rules reduce complexity by removing specific exceptions to general principles related to intraperiod tax allocations, ownership changes in foreign investments, and interim period income tax accounting for year-to-date losses that exceed anticipated losses. The new accounting rules also simplify accounting for franchise taxes that are partially based on income, transactions with a government that result in a step up in the tax basis of goodwill, separate financial statements of legal entities that are not subject to tax, and enacted changes in tax laws in interim periods. The new accounting rules were effective for the Company in the first quarter of 2021. The adoption of the new accounting rules did not have a material impact on the Company’s financial condition, results of operations, cash flows or disclosures.
Codification Improvements
In October 2020, the FASB issued ASU 2020-10, “Codification Improvements.” The new accounting rules improve the consistency of the Codification by including all disclosure guidance in the appropriate Disclosure Section (Section 50) that had only been included in the Other Presentation Matters Section (Section 45) of the Codification. Additionally, the new rules also clarify guidance across various topics including defined benefit plans, foreign currency transactions, and interest expense. The new accounting rules were effective for the Company in the first quarter of 2021. The adoption of the new accounting rules did not have a material impact on the Company’s financial condition, results of operations, cash flows or disclosures.
Reference Rate Reform
In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” In January 2021, the FASB clarified the scope of that guidance with the issuance of ASU 2021-01, “Reference Rate Reform: Scope.” The new accounting rules provide optional expedients and
8

HANESBRANDS INC.
Notes to Condensed Consolidated Financial Statements — (Continued)
(amounts in thousands, except per share data)
(unaudited)
exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform. The amendments in this standard can be adopted any time before the fourth quarter of 2022. The Company is currently in the process of evaluating the impact of adoption of the new rules on the Company’s financial condition, results of operations, cash flows and disclosures.
(3)    Discontinued Operations
In the first quarter of 2021, the Company announced that as part of its strategic plan, it was exploring alternatives for its European Innerwear business and subsequently reached the decision to exit this business. The Company determined that its European Innerwear business met held-for-sale and discontinued operations accounting criteria at the end of the first quarter of 2021. Accordingly, the Company began to separately report the results of its European Innerwear business as discontinued operations in its Condensed Consolidated Statements of Income, and to present the related assets and liabilities as held for sale in the Condensed Consolidated Balance Sheets. These changes have been applied to all periods presented. On November 4, 2021, the Company announced that it has reached an agreement to sell its European Innerwear business to an affiliate of Regent, L.P., pending the completion of consultation with the European and French works councils representing employees of the European Innerwear business and customary closing conditions. Under the agreement, the purchaser will receive all the assets and operating liabilities of the European Innerwear business. The transaction is expected to close in the first quarter of 2022.
The operations of the European Innerwear business were previously reported primarily in the International segment. Certain expenses related to its operations were included in general corporate expenses, restructuring and other action-related charges and amortization of intangibles which were previously excluded from segment operating profit and have been reclassified to discontinued operations for all periods presented. Discontinued operations does not include any allocation of corporate overhead expense or interest expense.
Upon meeting the criteria for held for sale classification which qualified as a triggering event, the Company performed a full impairment analysis of the disposal group's indefinite-lived intangible assets and goodwill. As a result of the strategic decision to exit the European Innerwear business, forecasts were revised to include updated market conditions and the removal of strategic operating decisions that would no longer occur under the Company's ownership. The revised forecasts indicated impairment charges of certain indefinite-lived trademarks and license agreements as well as the full goodwill balance attributable to the European Innerwear business. As a result of this impairment analysis, a non-cash charge of $155,745 was recorded as "Impairment of intangible assets and goodwill" in the summarized discontinued operations financial information for the nine months ended October 2, 2021. In addition, the Company recorded non-cash charges of $30,562 and $266,742 as "Loss on classification of assets held for sale" in the summarized discontinued operations financial information for the quarter and nine months ended October 2, 2021, respectively, to record a valuation allowance against the net assets held for sale to write down the carrying value of the disposal group to the estimated fair value less costs of disposal. The non-cash charge recorded in the quarter ended October 2, 2021 primarily resulted from changes in working capital balances and foreign exchange rates. The Company will continue to assess the valuation allowance in each interim period until the European Innerwear business is sold. Additionally, the Company recorded an impairment charge of $7,302 in continuing operations on an indefinite-lived trademark for the nine months ended October 2, 2021 which is reflected in the “Selling, general and administrative expenses” line in the Condensed Consolidated Statement of Income. This charge relates to the full impairment of an indefinite-lived trademark related to a specific brand within the European Innerwear business that was excluded from the disposal group as it is not being marketed for sale. The Company intends to exit this brand subsequent to the sale of the European Innerwear business.
During the second quarter of 2020, the Company completed a quantitative impairment analysis for certain indefinite-lived intangible assets as a result of the significant impact of the COVID-19 pandemic on their performance. Based on this analysis, the Company recorded impairment charges of $20,319 on certain indefinite-lived trademarks and other intangible assets within the European Innerwear business which are reflected in the “Impairment of intangible assets and goodwill” line in the summarized discontinued operations financial information for the nine months ended September 26, 2020.
9

HANESBRANDS INC.
Notes to Condensed Consolidated Financial Statements — (Continued)
(amounts in thousands, except per share data)
(unaudited)
The Company expects to continue certain sales from its supply chain to the European Innerwear business on a transitional basis after the sale of the business. Those sales and the related profit are included in continuing operations in the Condensed Consolidated Statements of Income and in “Other” in note “Business Segment Information” in all periods presented and have not been eliminated as intercompany transactions in consolidation. The related receivables from the European Innerwear business have been reclassified to “Trade accounts receivable, net” in the Condensed Consolidated Balance Sheets for all periods presented.
The operating results of the discontinued operations only reflect revenues and expenses that are directly attributable to the European Innerwear business that will be eliminated from continuing operations. The key components from discontinued operations related to the European Innerwear business are as follows:
Quarters EndedNine Months Ended
October 2,
2021
September 26,
2020
October 2,
2021
September 26,
2020
Net sales$147,529 $125,913 $400,880 $459,175 
Cost of sales75,171 80,671 213,831 239,219 
Gross profit72,358 45,242 187,049 219,956 
Selling, general and administrative expenses64,941 59,758 209,467 188,573 
Impairment of intangible assets and goodwill  155,745 20,319 
Loss on classification of assets held for sale30,562  266,742  
Operating income (loss)(23,145)(14,516)(444,905)11,064 
Other expenses271 411 885 1,197 
Interest expense, net110 368 269 1,774 
Income (loss) from discontinued operations before income tax expense(23,526)(15,295)(446,059)8,093 
Income tax expense (benefit)1,444 (348)(10,236)11,419 
Net loss from discontinued operations, net of tax$(24,970)$(14,947)$(435,823)$(3,326)
10

HANESBRANDS INC.
Notes to Condensed Consolidated Financial Statements — (Continued)
(amounts in thousands, except per share data)
(unaudited)
Assets and liabilities of discontinued operations classified as held for sale in the Condensed Consolidated Balance Sheets as of October 2, 2021, January 2, 2021 and September 26, 2020 consist of the following:
October 2,
2021
January 2, 2021(1)
September 26, 2020(1)
Cash and cash equivalents$16,816 $8,822 $14,560 
Trade accounts receivable, net88,684 84,632 71,994 
Inventories127,209 123,337 173,701 
Other current assets16,066 17,295 19,076 
Property, net61,898 67,950 68,809 
Right-of-use assets33,680 34,637 38,574 
Trademarks and other identifiable intangibles, net208,108 284,170 270,404 
Goodwill 96,692 91,664 
Deferred tax assets7,990 5,438 7,862 
Other noncurrent assets4,360 5,614 5,598 
Allowance to adjust assets to estimated fair value, less costs of disposal(260,687)  
Total assets of discontinued operations$304,124 $728,587 $762,242 
Accounts payable$69,122 $77,636 $64,492 
Accrued liabilities118,076 133,431 125,812 
Lease liabilities8,544 10,332 12,956 
Notes payable595 784 5,246 
Lease liabilities - noncurrent26,536 28,775 29,770 
Pension and postretirement benefits42,076 46,569 46,647 
Other noncurrent liabilities34,549 37,645 40,020 
Total liabilities of discontinued operations$299,498 $335,172 $324,943 
(1)Amounts at January 2, 2021 and September 26, 2020 have been classified as current and long-term in the Condensed Consolidated Balance Sheets.
The cash flows related to discontinued operations have not been segregated and are included in the Condensed Consolidated Statements of Cash Flows. The following table presents cash flow and non-cash information related to discontinued operations:
Quarters EndedNine Months Ended
October 2,
2021
September 26,
2020
October 2,
2021
September 26,
2020
Depreciation$ $2,803 $2,608 $8,150 
Amortization$ $1,333 $1,460 $3,877 
Capital expenditures$2,085 $724 $6,155 $6,124 
Impairment of intangible assets and goodwill$ $ $155,745 $20,319 
Loss on classification of assets held for sale$30,562 $ $266,742 $ 
Other investing activities$1,501 $1,795 $4,875 $3,626 
Capital expenditures included in accounts payable at end of period$70 $35 $70 $35 
Right-of-use assets obtained in exchange for lease obligations$1,454 $197 $4,591 $398 
11

HANESBRANDS INC.
Notes to Condensed Consolidated Financial Statements — (Continued)
(amounts in thousands, except per share data)
(unaudited)
(4)    Revenue Recognition
Revenue is recognized when obligations under the terms of a contract with a customer are satisfied, which occurs at a point in time, upon either shipment or delivery to the customer. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods, which includes estimates for variable consideration. Variable consideration includes trade discounts, rebates, volume-based incentives, cooperative advertising and product returns, which are offered within contracts between the Company and its customers, employing the practical expedient for contract costs. Incidental items that are immaterial to the context of the contract are recognized as expense at the transaction date.
The following table presents the Company’s revenues disaggregated by the customer’s method of purchase:

Quarters EndedNine Months Ended
October 2,
2021
September 26,
2020
October 2,
2021
September 26,
2020
Third-party brick-and-mortar wholesale$1,312,440 $1,192,959 $3,570,710 $3,243,572 
Consumer-directed