Adjustments for Non-Cash Items (USD, thousands)

Stock-Based Compensation (USD, thousands)

Changes in Working Capital (USD, thousands)

Capital Expenditures (CapEx) (USD, thousands)

Proceeds from / Repayments of Debt (USD, thousands)

Share Repurchases (USD, thousands)

Dividend Payments (USD, thousands)

Net Change in Cash (USD, thousands)

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The **high Cash and cash equivalents in Q3 2024** were primarily driven by several factors. First, **strong operating cash generation** and a significant **reduction in debt**—including the paydown of **$870 million of debt** following the sale of the global Champion business—contributed to a healthier cash position.  **[0001359841-24-000044_hbi-20240928xex991.htm:0]** **[HBI_3406634_2]**  Additionally, the company experienced **operational improvements** that enhanced profit margins and implemented **strategic actions** like reducing inventory levels to free up working capital.  **[0001359841-24-000046_hbi-20240928.htm:50]** **[0001359841-24-000044_hbi-20240928xex991.htm:13]** **[0001359841-24-000046_hbi-20240928.htm:4]** 

Why was Cash and cash equivalents so high in Q3 2024?

The sharp decline in Total assets in Q4 2024 was primarily driven by the **reclassification of Champion Japan and other related businesses to discontinued operations**, which significantly reduced the assets reported in continuing operations. Additionally, there were **reductions in inventories and property, net**, as well as a **decline in noncurrent assets held for sale** and decreases in **trademarks and goodwill** due to impairments or asset sales. These factors combined to produce the marked drop in total assets for the period.  **[0001359841-25-000008_hbi-20241228.htm:201]** **[0001359841-25-000008_hbi-20241228.htm:149]** **[0001359841-25-000008_hbi-20241228.htm:201]** **[0001359841-25-000005_hbi-20241228exx991.htm:13]** **[0001359841-25-000008_hbi-20241228.htm:118]** 

What caused the sharp decline in Total assets in Q4 2024?

HanesBrands Inc. significantly reduced its long-term debt in Q4 2024 by strategically paying down debt using the net proceeds from asset sales—including the sale of intellectual property and operating assets of its global Champion business—which accounted for over **$1 billion** in debt repayment. Additionally, the company’s strong cash flow generation from operations, amounting to **$264 million**, and targeted cost savings and restructuring initiatives to improve operating performance further contributed to the reduction. This comprehensive deleveraging strategy, focused on lowering its net debt-to-adjusted EBITDA leverage, explains the significant drop in long-term debt during the period.  **[HBI_3415868_4]** **[0001359841-25-000008_hbi-20241228.htm:78]** **[HBI_3415868_4]** **[0001359841-25-000005_hbi-20241228exx991.htm:0]** 

Why did Long-term debt drop so significantly in Q4 2024?

The spike in **Current assets held for sale** in Q2 2024 was primarily driven by the **reclassification of assets** related to the **global Champion business** and the **U.S.-based outlet store business**. The company reclassified a range of assets — including cash, trade accounts receivable, and inventories — as part of an active marketing effort for their sale, and it also applied **valuation adjustments** (including a **non-cash charge of $51,071**) to align the asset values with their estimated fair value less costs of disposal. These factors collectively drove the marked change in the figures.  **[0001359841-24-000037_hbi-20240629.htm:16]** **[0001359841-24-000037_hbi-20240629.htm:14]** 

What drove the spike in Current assets held for sale in Q2 2024?

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Operating Cash Flow was significantly lower in **Q4 2024** primarily because the company experienced a sharp decline in net income—from a positive **$77,941 thousand** in Q4 2023 to a net loss of **$12,880 thousand** in Q4 2024—which directly weakened operating cash flows. Additionally, **inventory write-down charges of $6,220 thousand** and a **loss on the sale of businesses amounting to $63,831 thousand** further reduced cash flow. Moreover, changes in working capital also played a role, with smaller positive impacts from **accounts receivable** and **inventories** and a larger negative impact from **accrued liabilities and other changes** contributing to the lower operating cash flow of **$67,431 thousand** in Q4 2024.  **[0001359841-25-000005_hbi-20241228exx991.htm:14]** 

Why was Operating Cash Flow so low in Q4 2024?

The steep drop in operating cash flow in FY 2024 was primarily driven by **a substantial increase in net loss** (rising from **$17,726 thousand** in FY 2023 to **$320,431 thousand** in FY 2024) which negatively impacted cash generation.  **[0001359841-25-000005_hbi-20241228exx991.htm:14]** **[0001359841-25-000008_hbi-20241228.htm:120]**  Additionally, there were **significant inventory write-downs of $119,748 thousand** in FY 2024 and a much higher **loss on the sale of businesses — $114,161 thousand** compared to only **$3,641 thousand** in FY 2023.  **[0001359841-25-000005_hbi-20241228exx991.htm:14]** **[0001359841-25-000008_hbi-20241228.htm:120]**  The company also faced **huge restructuring and related charges of $229 million** in FY 2024 versus **$23 million** in FY 2023, and changes in key working capital components (including accounts receivable, inventories, accounts payable, and deferred taxes) further contributed to the decline.  **[0001359841-25-000008_hbi-20241228.htm:65]** **[0001359841-25-000005_hbi-20241228exx991.htm:14]** **[0001359841-25-000008_hbi-20241228.htm:120]** 

What contributed to the steep annual drop in Operating Cash Flow in FY 2024?

The documents indicate that while there was a dramatic shift in the "Other" category under Operating Activities—from **$8,495 thousand in Q4 2023 to $(3,317) thousand in Q4 2024**—they do not provide specific details on what drove this enormous spike. The category generally includes miscellaneous adjustments used to reconcile net income to net cash from operating activities, but no further explanation is given.  **[0001359841-25-000005_hbi-20241228exx991.htm:14]** 

What drove the enormous spike in Other, Operating Activities in Q4 2024?

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HanesBrands Inc (HBI)

Financials