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SEGMENT INFORMATION
6 Months Ended
Jul. 01, 2017
Segment Reporting [Abstract]  
SEGMENT INFORMATION
SEGMENT INFORMATION

At the beginning of fiscal 2017, the Company combined its Carter's Retail and OshKosh Retail into a single U.S. Retail operating segment, and its Carter's Wholesale and OshKosh Wholesale into a single U.S. Wholesale operating segment, in order to reflect the sales-channel approach the Company's executive management now uses to evaluate its business performance and manage operations in the U.S.  The Company's International segment was not affected by these changes. The Company's reportable segments are now U.S. Retail, U.S. Wholesale, and International.

Prior periods have been conformed to reflect the Company's current segment structure by adding together Carter's Retail and OshKosh Retail as U.S. Retail and Carter's Wholesale and OshKosh Wholesale as U.S. Wholesale. Prior results for the International segment and Corporate expenses were not impacted.

The table below presents certain information for our reportable segments and unallocated corporate expenses for the periods indicated:
 
Fiscal quarter ended
 
Two fiscal quarters ended
(dollars in thousands)
July 1,
2017
 
% of
Total Net Sales
 
July 2,
2016
 
% of
Total Net Sales
 
July 1,
2017
 
% of
Total Net Sales
 
July 2,
2016
 
% of
Total Net Sales
Net sales:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Wholesale
$
217,710

 
31.5
%
 
$
215,122

 
33.6
%
 
$
510,265

 
35.8
%
 
$
507,176

 
37.2
%
U.S. Retail (a)
391,822

 
56.6
%
 
352,782

 
55.2
%
 
755,593

 
53.0
%
 
706,871

 
51.8
%
International (b)     
82,585

 
11.9
%
 
71,567

 
11.2
%
 
159,014

 
11.2
%
 
149,509

 
11.0
%
Total net sales
$
692,117

 
100.0
%
 
$
639,471

 
100.0
%
 
$
1,424,872

 
100.0
%
 
$
1,363,556

 
100.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating income (loss):
 
 
% of
Segment
Net Sales
 
 
 
% of
Segment
Net Sales
 
 
 
% of
Segment
Net Sales
 
 
 
% of
Segment
Net Sales
U.S. Wholesale (g)
$
35,806

 
16.4
%
 
$
41,509

 
19.3
%
 
$
105,501

 
20.7
%
 
$
109,920

 
21.7
%
U.S. Retail (a) (g)
42,342

 
10.8
%
 
36,952

 
10.5
%
 
72,242

 
9.6
%
 
76,421

 
10.8
%
International (b) (g)    
7,597

 
9.2
%
 
9,105

 
12.7
%
 
11,282

 
7.1
%
 
17,546

 
11.7
%
Corporate expenses (c) (d) (e) (f)    
(21,224
)
 


 
(24,323
)
 


 
(45,938
)
 


 
(47,636
)
 


Total operating income
$
64,521

 
9.3
%
 
$
63,243

 
9.9
%
 
$
143,087

 
10.0
%
 
$
156,251

 
11.5
%

(a)
Includes retail store and eCommerce results.
(b)
Net sales include international retail, eCommerce, and wholesale sales.
(c)
Corporate expenses include expenses related to incentive compensation, stock-based compensation, executive management, severance and relocation, finance, office occupancy, information technology, certain legal fees, consulting, and audit fees.
(d)
Includes expenses related to the amortization of the H.W. Carter and Sons tradenames of approximately $0.8 million and $1.7 million for the fiscal quarter and two fiscal quarters ended July 2, 2016, respectively.
(e)
Includes acquisition-related expenses of approximately $0.6 million and $1.8 million for fiscal quarter the two fiscal quarters ended July 1, 2017, respectively.
(f)
Includes charges related to the Company's direct sourcing initiative of approximately $0.1 and $0.3 million for the fiscal quarter and two fiscal quarters ended July 1, 2017, respectively.
(g)
A total of $0.4 million of certain costs related to inventory acquired from Skip Hop is included in operating income between U.S. Wholesale, U.S. Retail, and International for the fiscal quarter and two fiscal quarters ended July 1, 2017.