Consolidating Financial Information

In accordance with the indenture governing the Company’s $250,000 8% Senior Notes issued on December 10, 2009 and the indenture governing the Company’s $1,000,000 6.375% Senior Notes issued on November 9, 2010 (together, the “Indentures”), certain of the Company’s subsidiaries have guaranteed the Company’s obligations under the 8% Senior Notes and the 6.375% Senior Notes, respectively. The following presents the condensed consolidating financial information separately for:

(i) Parent Company, the issuer of the guaranteed obligations. Parent Company includes Hanesbrands Inc. and its 100% owned operating divisions which are not legal entities, and excludes its subsidiaries which are legal entities;

(ii) Guarantor subsidiaries, on a combined basis, as specified in the Indentures;

(iii) Non-guarantor subsidiaries, on a combined basis;

(iv) Consolidating entries and eliminations representing adjustments to (a) eliminate intercompany transactions between or among Parent Company, the guarantor subsidiaries and the non-guarantor subsidiaries, (b) eliminate intercompany profit in inventory, (c) eliminate the investments in our subsidiaries and (d) record consolidating entries; and

(v) The Company, on a consolidated basis.

The 8% Senior Notes and the 6.375% Senior Notes are fully and unconditionally guaranteed on a joint and several basis by each guarantor subsidiary, each of which is wholly owned, directly or indirectly, by Hanesbrands Inc. A guarantor subsidiary’s guarantee can be released in certain customary circumstances. Each entity in the consolidating financial information follows the same accounting policies as described in the consolidated financial statements, except for the use by the Parent Company and guarantor subsidiaries of the equity method of accounting to reflect ownership interests in subsidiaries which are eliminated upon consolidation.



	Condensed Consolidating Statement of Comprehensive Income (Loss) Quarter Ended June 29, 2013
	Parent Company		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Entries and Eliminations			Consolidated
Net sales	$	1,054,318	$	168,376	$	603,380	$	(626,869	)	$	1,199,205
Cost of sales	813,705		78,781		463,089		(591,852		)	763,723
Gross profit	240,613		89,595		140,291		(35,017		)	435,482
Selling, general and administrative expenses	188,889		35,823		30,651		(1,328		)	254,035
Operating profit	51,724		53,772		109,640		(33,689		)	181,447
Equity in earnings of subsidiaries	112,006		78,211		—		(190,217		)	—
Other expenses	751		—		—		—			751
Interest expense, net	23,756		—		1,465		—			25,221
Income from continuing operations before income tax expense	139,223		131,983		108,175		(223,906		)	155,475
Income tax expense	17,637		7,754		8,498		—			33,889
Income from continuing operations	121,586		124,229		99,677		(223,906		)	121,586
Loss from discontinued operations, net of tax	—		—		—		—			—
Net income	$	121,586	$	124,229	$	99,677	$	(223,906	)	$	121,586
Comprehensive income	$	118,326	$	124,229	$	163,602	$	(287,831	)	$	118,326



	Condensed Consolidating Statement of Comprehensive Income (Loss) Quarter Ended June 30, 2012
	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Entries and Eliminations			Consolidated
Net sales	$	1,022,085		$	161,669		$	568,013		$	(571,116	)	$	1,180,651
Cost of sales	831,913			75,042			458,181			(551,417		)	813,719
Gross profit	190,172			86,627			109,832			(19,699		)	366,932
Selling, general and administrative expenses	185,011			29,808			33,124			(962		)	246,981
Operating profit	5,161			56,819			76,708			(18,737		)	119,951
Equity in earnings of subsidiaries	59,290			53,786			—			(113,076		)	—
Other expenses	811			—			—			—			811
Interest expense, net	33,814			(3		)	2,837			(37		)	36,611
Income from continuing operations before income tax expense	29,826			110,608			73,871			(131,776		)	82,529
Income tax expense	3,484			8,976			2,753			—			15,213
Income from continuing operations	26,342			101,632			71,118			(131,776		)	67,316
Loss from discontinued operations, net of tax	(25,111		)	(31,791		)	(9,832		)	649			(66,085		)
Net income	$	1,231		$	69,841		$	61,286		$	(131,127	)	$	1,231
Comprehensive income (loss)	$	(378	)	$	69,841		$	57,403		$	(127,244	)	$	(378	)



	Condensed Consolidating Statement of Comprehensive Income Six Months Ended June 29, 2013
	Parent Company		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Entries and Eliminations			Consolidated
Net sales	$	1,915,073	$	301,082	$	1,147,681	$	(1,219,170	)	$	2,144,666
Cost of sales	1,497,562		142,259		902,076		(1,160,012		)	1,381,885
Gross profit	417,511		158,823		245,605		(59,158		)	762,781
Selling, general and administrative expenses	362,837		74,131		61,748		(2,525		)	496,191
Operating profit	54,674		84,692		183,857		(56,633		)	266,590
Equity in earnings of subsidiaries	187,866		128,030		—		(315,896		)	—
Other expenses	1,215		—		—		—			1,215
Interest expense, net	47,909		—		2,935		—			50,844
Income from continuing operations before income tax expense	193,416		212,722		180,922		(372,529		)	214,531
Income tax expense	20,451		9,129		11,986		—			41,566
Income from continuing operations	172,965		203,593		168,936		(372,529		)	172,965
Loss from discontinued operations, net of tax	—		—		—		—			—
Net income	$	172,965	$	203,593	$	168,936	$	(372,529	)	$	172,965
Comprehensive income	$	171,061	$	203,593	$	162,637	$	(366,230	)	$	171,061



	Condensed Consolidating Statement of Comprehensive Income (Loss) Six Months Ended June 30, 2012
	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Entries and Eliminations			Consolidated
Net sales	$	1,894,145		$	301,807		$	1,095,713		$	(1,137,881	)	$	2,153,784
Cost of sales	1,574,294			139,738			919,688			(1,101,982		)	1,531,738
Gross profit	319,851			162,069			176,025			(35,899		)	622,046
Selling, general and administrative expenses	361,634			64,971			67,009			(2,164		)	491,450
Operating profit (loss)	(41,783		)	97,098			109,016			(33,735		)	130,596
Equity in earnings of subsidiaries	102,918			74,923			—			(177,841		)	—
Other expenses	1,456			—			—			—			1,456
Interest expense, net	68,320			(7		)	5,292			1			73,606
Income (loss) from continuing operations before income tax expense (benefit)	(8,641		)	172,028			103,724			(211,577		)	55,534
Income tax expense (benefit)	(9,079		)	15,730			5,838			—			12,489
Income from continuing operations	438			156,298			97,886			(211,577		)	43,045
Loss from discontinued operations, net of tax	(26,037		)	(31,791		)	(14,801		)	3,985			(68,644		)
Net income (loss)	$	(25,599	)	$	124,507		$	83,085		$	(207,592	)	$	(25,599	)
Comprehensive income (loss)	$	(22,284	)	$	124,507		$	81,154		$	(205,661	)	$	(22,284	)



	Condensed Consolidating Balance Sheet June 29, 2013
	Parent Company		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Entries and Eliminations			Consolidated
Assets
Cash and cash equivalents	$	5,580	$	3,494	$	73,231	$	—		$	82,305
Trade accounts receivable, net	109,656		41,657		465,944		(635		)	616,622
Inventories	969,838		114,911		444,734		(192,309		)	1,337,174
Deferred tax assets	163,843		1,015		3,350		—			168,208
Other current assets	29,078		10,467		16,588		(478		)	55,655
Total current assets	1,277,995		171,544		1,003,847		(193,422		)	2,259,964
Property, net	84,716		38,370		453,494		—			576,580
Trademarks and other identifiable intangibles, net	9,346		90,057		15,122		—			114,525
Goodwill	232,882		124,247		75,821		—			432,950
Investments in subsidiaries	2,428,675		1,384,217		—		(3,812,892		)	—
Deferred tax assets	235,565		154,325		16,889		—			406,779
Receivables from related entities	4,224,923		3,303,132		1,988,906		(9,516,961		)	—
Other noncurrent assets	56,743		248		1,741		—			58,732
Total assets	$	8,550,845	$	5,266,140	$	3,555,820	$	(13,523,275	)	$	3,849,530

Liabilities and Stockholders’ Equity
Accounts payable	$	254,058	$	14,044	$	174,168	$	—		$	442,270
Accrued liabilities	144,161		40,684		66,178		(70		)	250,953
Notes payable	—		—		30,305		—			30,305
Accounts Receivable Securitization Facility	—		—		170,479		—			170,479
Total current liabilities	398,219		54,728		441,130		(70		)	894,007
Long-term debt	1,374,500		—		—		—			1,374,500
Pension and postretirement benefits	403,735		—		11,541		—			415,276
Payables to related entities	5,231,106		2,612,477		1,414,351		(9,257,934		)	—
Other noncurrent liabilities	99,147		10,932		11,530		—			121,609
Total liabilities	7,506,707		2,678,137		1,878,552		(9,258,004		)	2,805,392
Stockholders’ equity	1,044,138		2,588,003		1,677,268		(4,265,271		)	1,044,138
Total liabilities and stockholders’ equity	$	8,550,845	$	5,266,140	$	3,555,820	$	(13,523,275	)	$	3,849,530



	Condensed Consolidating Balance Sheet December 29, 2012
	Parent Company		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Entries and Eliminations			Consolidated
Assets
Cash and cash equivalents	$	5,617	$	1,919	$	35,260	$	—		$	42,796
Trade accounts receivable, net	39,379		32,199		434,825		(125		)	506,278
Inventories	882,290		102,121		413,340		(144,615		)	1,253,136
Deferred tax assets	161,935		1,015		3,239		—			166,189
Other current assets	30,692		11,917		16,563		(46		)	59,126
Total current assets	1,119,913		149,171		903,227		(144,786		)	2,027,525
Property, net	90,820		41,326		464,012		—			596,158
Trademarks and other identifiable intangibles, net	10,662		93,727		15,725		—			120,114
Goodwill	232,882		124,247		76,171		—			433,300
Investments in subsidiaries	2,220,706		1,284,516		—		(3,505,222		)	—
Deferred tax assets	224,559		154,325		18,645		—			397,529
Receivables from related entities	3,967,079		3,198,153		1,785,466		(8,950,698		)	—
Other noncurrent assets	51,686		271		5,117		—			57,074
Total assets	$	7,918,307	$	5,045,736	$	3,268,363	$	(12,600,706	)	$	3,631,700

Liabilities and Stockholders’ Equity
Accounts payable	$	217,645	$	8,209	$	177,790	$	—		$	403,644
Accrued liabilities	145,962		57,375		68,666		(31		)	271,972
Notes payable	—		—		26,216		—			26,216
Accounts Receivable Securitization Facility	—		—		173,836		—			173,836
Total current liabilities	363,607		65,584		446,508		(31		)	875,668
Long-term debt	1,317,500		—		—		—			1,317,500
Pension and postretirement benefits	433,490		—		12,777		—			446,267
Payables to related entities	4,835,465		2,582,287		1,281,957		(8,699,709		)	—
Other noncurrent liabilities	81,379		10,977		13,043		—			105,399
Total liabilities	7,031,441		2,658,848		1,754,285		(8,699,740		)	2,744,834
Stockholders’ equity	886,866		2,386,888		1,514,078		(3,900,966		)	886,866
Total liabilities and stockholders’ equity	$	7,918,307	$	5,045,736	$	3,268,363	$	(12,600,706	)	$	3,631,700



	Condensed Consolidating Statement of Cash Flows Six Months Ended June 29, 2013
	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Entries and Eliminations			Consolidated
Net cash provided by operating activities	$	165,172		$	105,792		$	63,256		$	(315,894	)	$	18,326
Investing activities:
Capital expenditures	(4,327		)	(2,011		)	(9,835		)	—			(16,173		)
Net cash used in investing activities	(4,327		)	(2,011		)	(9,835		)	—			(16,173		)
Financing activities:
Borrowings on notes payable	—			—			62,954			—			62,954
Repayments on notes payable	—			—			(58,671		)	—			(58,671		)
Borrowings on Accounts Receivable Securitization Facility	—			—			81,358			—			81,358
Repayments on Accounts Receivable Securitization Facility	—			—			(84,715		)	—			(84,715		)
Borrowings on Revolving Loan Facility	1,970,000			—			—			—			1,970,000
Repayments on Revolving Loan Facility	(1,913,000		)	—			—			—			(1,913,000		)
Cash dividends paid	(19,797		)	—			—			—			(19,797		)
Proceeds from stock options exercised	5,279			—			—			—			5,279
Taxes paid related to net shares settlement of equity awards	(20,004		)	—			—			—			(20,004		)
Excess tax benefit from stock-based compensation	14,892			—			—			—			14,892
Other	536			—			(274		)	(3		)	259
Net transactions with related entities	(198,788		)	(102,206		)	(14,903		)	315,897			—
Net cash provided by (used in) financing activities	(160,882		)	(102,206		)	(14,251		)	315,894			38,555
Effect of changes in foreign exchange rates on cash	—			—			(1,199		)	—			(1,199		)
Increase (decrease) in cash and cash equivalents	(37		)	1,575			37,971			—			39,509
Cash and cash equivalents at beginning of year	5,617			1,919			35,260			—			42,796
Cash and cash equivalents at end of period	$	5,580		$	3,494		$	73,231		$	—		$	82,305



	Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2012
	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Entries and Eliminations			Consolidated
Net cash provided by operating activities	$	131,664		$	36,793		$	22,121		$	(177,838	)	$	12,740
Investing activities:
Capital expenditures	(3,068		)	(4,073		)	(11,864		)	—			(19,005		)
Disposition of business	—			—			12,903			—			12,903
Net cash provided by (used) in investing activities	(3,068		)	(4,073		)	1,039			—			(6,102		)
Financing activities:
Borrowings on notes payable	—			—			31,868			—			31,868
Repayments on notes payable	—			—			(47,554		)	—			(47,554		)
Borrowings on Accounts Receivable Securitization Facility	—			—			104,043			—			104,043
Repayments on Accounts Receivable Securitization Facility	—			—			(100,870		)	—			(100,870		)
Borrowings on Revolving Loan Facility	1,494,500			—			—			—			1,494,500
Repayments on Revolving Loan Facility	(1,493,500		)	—			—			—			(1,493,500		)
Proceeds from stock options exercised	731			—			—			—			731
Excess tax benefit from stock-based compensation	50			—			—			—			50
Other	(610		)	—			(272		)	—			(882		)
Dividends paid to related entities	—			(4,623		)	(4,867		)	9,490			—
Net transactions with related entities	(132,225		)	(27,963		)	(8,160		)	168,348			—
Net cash used in financing activities	(131,054		)	(32,586		)	(25,812		)	177,838			(11,614		)
Effect of changes in foreign exchange rates on cash	1			—			(708		)	—			(707		)
Increase (decrease) in cash and cash equivalents	(2,457		)	134			(3,360		)	—			(5,683		)
Cash and cash equivalents at beginning of year	8,330			2,726			24,289			—			35,345
Cash and cash equivalents at end of period	$	5,873		$	2,860		$	20,929		$	—		$	29,662