Consolidating Financial Information

In accordance with the indenture governing the Company’s $1,000,000 6.375% Senior Notes issued on November 9, 2010, as supplemented from time to time, certain of the Company’s subsidiaries have guaranteed the Company’s obligations under the 6.375% Senior Notes. 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 the Company’s subsidiaries and (d) record consolidating entries; and

(v) The Company, on a consolidated basis.

The 6.375% Senior Notes are fully and unconditionally guaranteed on a joint and several basis by each guarantor subsidiary, each of which is 100% 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 that are eliminated upon consolidation.



	Condensed Consolidating Statement of Comprehensive Income Quarter Ended July 4, 2015
	Parent Company		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Entries and Eliminations			Consolidated
Net sales	$	1,205,550	$	242,526	$	756,240	$	(682,283	)	$	1,522,033
Cost of sales	932,461		129,200		550,424		(658,277		)	953,808
Gross profit	273,089		113,326		205,816		(24,006		)	568,225
Selling, general and administrative expenses	243,596		52,772		133,428		(504		)	429,292
Operating profit	29,493		60,554		72,388		(23,502		)	138,933
Equity in earnings of subsidiaries	90,055		66,942		—		(156,997		)	—
Other expenses	830		—		—		—			830
Interest expense, net	21,578		—		7,634		(192		)	29,020
Income before income tax expense	97,140		127,496		64,754		(180,307		)	109,083
Income tax expense	2,238		11,297		646					14,181
Net income	$	94,902	$	116,199	$	64,108	$	(180,307	)	$	94,902

Comprehensive income	$	94,396	$	116,199	$	70,011	$	(186,210	)	$	94,396



	Condensed Consolidating Statement of Comprehensive Income Quarter Ended June 28, 2014
	Parent Company		Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Consolidating Entries and Eliminations			Consolidated
Net sales	$	1,186,489	$	190,946		$	607,973	$	(643,356	)	$	1,342,052
Cost of sales	897,376		90,178			458,668		(608,524		)	837,698
Gross profit	289,113		100,768			149,305		(34,832		)	504,354
Selling, general and administrative expenses	215,474		53,922			29,619		(1,785		)	297,230
Operating profit	73,639		46,846			119,686		(33,047		)	207,124
Equity in earnings of subsidiaries	120,322		93,613			—		(213,935		)	—
Other expenses	660		—			—		—			660
Interest expense, net	19,058		(88		)	1,979		170			21,119
Income before income tax expense	174,243		140,547			117,707		(247,152		)	185,345
Income tax expense	19,665		8,070			3,032		—			30,767
Net income	$	154,578	$	132,477		$	114,675	$	(247,152	)	$	154,578

Comprehensive income	$	158,546	$	132,477		$	117,159	$	(249,636	)	$	158,546




	Condensed Consolidating Statement of Comprehensive Income Six Months Ended July 4, 2015
	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Consolidating Entries and Eliminations			Consolidated
Net sales	$	2,156,640		$	395,700		$	1,548,252	$	(1,369,638	)	$	2,730,954
Cost of sales	1,705,350			203,510			1,150,834		(1,343,196		)	1,716,498
Gross profit	451,290			192,190			397,418		(26,442		)	1,014,456
Selling, general and administrative expenses	468,278			105,636			213,882		(2,204		)	785,592
Operating profit	(16,988		)	86,554			183,536		(24,238		)	228,864
Equity in earnings of subsidiaries	221,221			175,112			—		(396,333		)	—
Other expenses	1,212			—			—		—			1,212
Interest expense, net	40,701			(4		)	15,416		(206		)	55,907
Income before income tax expense	162,320			261,670			168,120		(420,365		)	171,745
Income tax expense	14,782			207			9,218		—			24,207
Net income	$	147,538		$	261,463		$	158,902	$	(420,365	)	$	147,538

Comprehensive income	$	151,875		$	261,463		$	160,415	$	(421,878	)	$	151,875




	Condensed Consolidating Statement of Comprehensive Income Six Months Ended June 28, 2014
	Parent Company		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Entries and Eliminations			Consolidated
Net sales	$	2,078,819	$	410,896	$	1,168,159	$	(1,256,452	)	$	2,401,422
Cost of sales	1,618,522		223,659		889,218		(1,191,108		)	1,540,291
Gross profit	460,297		187,237		278,941		(65,344		)	861,131
Selling, general and administrative expenses	406,179		123,945		56,098		(4,003		)	582,219
Operating profit	54,118		63,292		222,843		(61,341		)	278,912
Equity in earnings of subsidiaries	205,387		168,473		—		(373,860		)	—
Other expenses	1,095		—		—		—			1,095
Interest expense, net	36,942		1,898		4,035		62			42,937
Income before income tax expense	221,468		229,867		218,808		(435,263		)	234,880
Income tax expense	25,330		5,756		7,656		—			38,742
Net income	$	196,138	$	224,111	$	211,152	$	(435,263	)	$	196,138

Comprehensive income	$	199,325	$	224,111	$	211,371	$	(435,482	)	$	199,325



	Condensed Consolidating Balance Sheet July 4, 2015
	Parent Company		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Entries and Eliminations			Consolidated
Assets
Cash and cash equivalents	$	37,210	$	12,541	$	265,603	$	—		$	315,354
Trade accounts receivable, net	109,247		104,605		622,557		(1,110		)	835,299
Inventories	1,105,921		179,184		651,750		(170,094		)	1,766,761
Deferred tax assets	198,997		4,194		11,277		—			214,468
Other current assets	84,115		10,146		70,179		—			164,440
Total current assets	1,535,490		310,670		1,621,366		(171,204		)	3,296,322
Property, net	94,661		39,827		524,301		—			658,789
Trademarks and other identifiable intangibles, net	3,817		135,849		574,117		—			713,783
Goodwill	232,882		244,640		357,505		—			835,027
Investments in subsidiaries	4,157,147		2,016,195		—		(6,173,342		)	—
Deferred tax assets	200,363		74,734		15,976		—			291,073
Receivables from related entities	4,905,444		4,711,239		2,203,829		(11,820,512		)	—
Other noncurrent assets	61,515		426		15,446		—			77,387
Total assets	$	11,191,319	$	7,533,580	$	5,312,540	$	(18,165,058	)	$	5,872,381

Liabilities and Stockholders’ Equity
Accounts payable	$	371,318	$	30,282	$	259,769	$	—		$	661,369
Accrued liabilities	184,331		50,106		239,456		(955		)	472,938
Notes payable	—		—		112,818		—			112,818
Accounts Receivable Securitization Facility	—		—		232,134		—			232,134
Current portion of long-term debt	25,500		—		8,931		—			34,431
Total current liabilities	581,149		80,388		853,108		(955		)	1,513,690
Long-term debt	1,818,125		—		399,635		—			2,217,760
Pension and postretirement benefits	299,136		—		65,297		—			364,433
Payables to related entities	6,902,814		3,488,083		1,421,260		(11,812,157		)	—
Other noncurrent liabilities	138,323		31,423		154,980		—			324,726
Total liabilities	9,739,547		3,599,894		2,894,280		(11,813,112		)	4,420,609
Stockholders’ equity	1,451,772		3,933,686		2,418,260		(6,351,946		)	1,451,772
Total liabilities and stockholders’ equity	$	11,191,319	$	7,533,580	$	5,312,540	$	(18,165,058	)	$	5,872,381



	Condensed Consolidating Balance Sheet January 3, 2015
	Parent Company		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Entries and Eliminations			Consolidated
Assets
Cash and cash equivalents	$	10,910	$	10,796	$	218,149	$	—		$	239,855
Trade accounts receivable, net	73,794		37,511		561,514		(771		)	672,048
Inventories	958,376		120,341		607,356		(148,873		)	1,537,200
Deferred tax assets	200,050		3,515		11,500		—			215,065
Other current assets	38,446		11,224		51,394		—			101,064
Total current assets	1,281,576		183,387		1,449,913		(149,644		)	2,765,232
Property, net	88,599		46,221		539,559		—			674,379
Trademarks and other identifiable intangibles, net	4,102		79,393		607,706		—			691,201
Goodwill	232,881		124,247		365,992		—			723,120
Investments in subsidiaries	3,732,783		1,792,790		—		(5,525,573		)	—
Deferred tax assets	202,910		74,735		16,702		—			294,347
Receivables from related entities	4,585,755		4,471,644		2,087,280		(11,144,679		)	—
Other noncurrent assets	55,540		428		17,534		—			73,502
Total assets	$	10,184,146	$	6,772,845	$	5,084,686	$	(16,819,896	)	$	5,221,781

Liabilities and Stockholders’ Equity
Accounts payable	$	353,799	$	11,925	$	255,496	$	—		$	621,220
Accrued liabilities	190,739		61,339		242,437		1,112			495,627
Notes payable	—		—		144,438		—			144,438
Accounts Receivable Securitization Facility	—		—		210,963		—			210,963
Current portion of long-term debt	—		—		14,354		—			14,354
Total current liabilities	544,538		73,264		867,688		1,112			1,486,602
Long-term debt	1,176,500		—		437,497		—			1,613,997
Pension and postretirement benefits	399,931		—		72,072		—			472,003
Payables to related entities	6,544,095		3,270,513		1,330,071		(11,144,679		)	—
Other noncurrent liabilities	132,310		12,609		118,287		(799		)	262,407
Total liabilities	8,797,374		3,356,386		2,825,615		(11,144,366		)	3,835,009
Stockholders’ equity	1,386,772		3,416,459		2,259,071		(5,675,530		)	1,386,772
Total liabilities and stockholders’ equity	$	10,184,146	$	6,772,845	$	5,084,686	$	(16,819,896	)	$	5,221,781



	Condensed Consolidating Statement of Cash Flows Six Months Ended July 4, 2015
	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Entries and Eliminations			Consolidated
Net cash from operating activities	$	(62,363	)	$	168,523		$	67,285		$	(406,513	)	$	(233,068	)
Investing activities:
Purchases of property, plant and equipment	(10,280		)	(7,301		)	(38,657		)	—			(56,238		)
Proceeds from sales of assets	18			4,330			797			—			5,145
Acquisition of business, net of cash acquired	—			(193,461		)	—			—			(193,461		)
Net cash from investing activities	(10,262		)	(196,432		)	(37,860		)	—			(244,554		)
Financing activities:
Borrowings on notes payable	—			—			177,730			—			177,730
Repayments on notes payable	—			—			(200,706		)	—			(200,706		)
Borrowings on Accounts Receivable Securitization Facility	—			—			134,339			—			134,339
Repayments on Accounts Receivable Securitization Facility	—			—			(113,168		)	—			(113,168		)
Borrowings on Revolving Loan Facility	2,794,000			—			—			—			2,794,000
Repayments on Revolving Loan Facility	(2,970,500		)	—			—			—			(2,970,500		)
Repayments on Euro Term Loan Facility	—			—			(2,004		)	—			(2,004		)
Borrowings on Term Loan A Facility	425,000			—			—			—			425,000
Repayments on Term Loan A Facility	(5,313		)	—			—			—			(5,313		)
Borrowings on Term Loan B Facility	425,000			—			—			—			425,000
Repayments on Term Loan B Facility	(1,063		)	—			—			—			(1,063		)
Cash dividends paid	(81,470		)	—			—			—			(81,470		)
Taxes paid related to net shares settlement of equity awards	(47,432		)	—			—			—			(47,432		)
Excess tax benefit from stock-based compensation	34,127			—			—			—			34,127
Other	1,697			—			(14,337		)	801			(11,839		)
Net transactions with related entities	(475,121		)	29,654			39,755			405,712			—
Net cash from financing activities	98,925			29,654			21,609			406,513			556,701
Effect of changes in foreign exchange rates on cash	—			—			(3,580		)	—			(3,580		)
Change in cash and cash equivalents	26,300			1,745			47,454			—			75,499
Cash and cash equivalents at beginning of year	10,910			10,796			218,149			—			239,855
Cash and cash equivalents at end of period	$	37,210		$	12,541		$	265,603		$	—		$	315,354



	Condensed Consolidating Statement of Cash Flow Six Months Ended June 28, 2014
	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Entries and Eliminations			Consolidated
Net cash from operating activities	$	210,832		$	150,068		$	18,064		$	(374,026	)	$	4,938
Investing activities:
Purchases of property, plant and equipment	(6,995		)	(3,194		)	(14,396		)	—			(24,585		)
Proceeds from sales of assets	—			—			4,918			—			4,918
Net cash from investing activities	(6,995		)	(3,194		)	(9,478		)	—			(19,667		)
Financing activities:
Borrowings on notes payable	—			—			66,737			—			66,737
Repayments on notes payable	—			—			(61,957		)	—			(61,957		)
Borrowings on Accounts Receivable Securitization Facility	—			—			115,609			—			115,609
Repayments on Accounts Receivable Securitization Facility	—			—			(72,399		)	—			(72,399		)
Borrowings on Revolving Loan Facility	1,782,500			—			—			—			1,782,500
Repayments on Revolving Loan Facility	(1,726,500		)	—			—			—			(1,726,500		)
Cash dividends paid	(59,731		)	—			—			—			(59,731		)
Taxes paid related to net shares settlement of equity awards	(10,342		)	—			—			—			(10,342		)
Excess tax benefit from stock-based compensation	7,895			—			—			—			7,895
Other	1,146			—			(486		)	146			806
Net transactions with related entities	(201,067		)	(149,787		)	(23,026		)	373,880			—
Net cash from financing activities	(206,099		)	(149,787		)	24,478			374,026			42,618
Effect of changes in foreign exchange rates on cash	—			—			(135		)	—			(135		)
Change in cash and cash equivalents	(2,262		)	(2,913		)	32,929			—			27,754
Cash and cash equivalents at beginning of year	5,695			7,811			102,357			—			115,863
Cash and cash equivalents at end of period	$	3,433		$	4,898		$	135,286		$	—		$	143,617