ktb-20220702

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 July 2, 2022


☐			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: 001-38854

KONTOOR BRANDS, INC.

(Exact name of registrant as specified in its charter)


North Carolina			83-2680248
(State or other jurisdiction of incorporation or organization)			(I.R.S. employer identification number)

400 N. Elm Street

Greensboro, North Carolina 27401

(Address of principal executive offices)

(336) 332-3400

(Registrant’s telephone number, including area code)


Securities registered pursuant to Section 12(b) of the Act:
Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common Stock, no par value	KTB	New 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 þ 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 þ 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.

Large accelerated filer

☑

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging 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 þ

The number of shares of Common Stock of the registrant outstanding as of July 29, 2022 was 55,385,024.

KONTOOR BRANDS, INC.

Table of Contents


			Page
Part I — Financial Information

Item 1. Financial Statements (Unaudited)			3

Consolidated Balance Sheets: June 2022, December 2021 and June 2021			3

Consolidated Statements of Operations: Three and six months ended June 2022 and June 2021			4

Consolidated Statements of Comprehensive Income: Three and six months ended June 2022 and June 2021			5

Consolidated Statements of Cash Flows: Six months ended June 2022 and June 2021			6

Consolidated Statements of Equity: Three and six months ended June 2022 and June 2021			7

Notes to Consolidated Financial Statements			8

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			22

Item 3. Quantitative and Qualitative Disclosures about Market Risk			32

Item 4. Controls and Procedures			32

Part II — Other Information

Item 1. Legal Proceedings			33

Item 1A. Risk Factors			33

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			33

Item 6. Exhibits			34

Signatures			35

Kontoor Brands, Inc. Q2 FY22 Form 10-Q 2

PART I — FINANCIAL INFORMATION


ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)

KONTOOR BRANDS, INC.

Consolidated Balance Sheets

(Unaudited)


(In thousands, except share amounts)	June 2022		December 2021		June 2021
ASSETS
Current assets
Cash and cash equivalents	$	145,296	$	185,322	$	175,628
Accounts receivable, net	185,157		289,800		215,297
Inventories	537,900		362,957		403,249
Prepaid expenses and other current assets	89,171		72,579		82,127
Total current assets	957,524		910,658		876,301
Property, plant and equipment, net	101,994		105,155		109,487
Operating lease assets	44,271		54,950		63,036
Intangible assets, net	13,740		14,638		15,325
Goodwill	210,164		212,213		212,654

Other assets	215,455		235,410		241,042
TOTAL ASSETS	$	1,543,148	$	1,533,024	$	1,517,845
LIABILITIES AND EQUITY
Current liabilities
Short-term borrowings	$	4,848	$	249	$	918
Current portion of long-term debt	5,000		—		8,750
Accounts payable	281,391		214,204		198,697
Accrued liabilities	153,527		217,164		187,240
Operating lease liabilities, current	20,254		24,195		26,034
Total current liabilities	465,020		455,812		421,639
Operating lease liabilities, noncurrent	25,132		32,993		41,325

Other liabilities	86,839		104,764		118,733
Long-term debt	786,968		791,317		782,262
Commitments and contingencies
Total liabilities	1,363,959		1,384,886		1,363,959
Equity
Preferred Stock, no par value; shares authorized, 90,000,000; no shares outstanding at June 2022, December 2021 and June 2021	—		—		—
Common Stock, no par value; shares authorized, 600,000,000; shares outstanding of 55,382,208 at June 2022; 56,381,466 at December 2021 and 57,631,974 at June 2021	—		—		—
Additional paid-in capital	232,041		218,259		198,776
Retained earnings	39,105		22,635		44,079
Accumulated other comprehensive loss	(91,957)		(92,756)		(88,969)
Total equity	179,189		148,138		153,886
TOTAL LIABILITIES AND EQUITY	$	1,543,148	$	1,533,024	$	1,517,845

See accompanying notes to unaudited consolidated financial statements.

3 Kontoor Brands, Inc. Q2 FY22 Form 10-Q

KONTOOR BRANDS, INC.

Consolidated Statements of Operations

(Unaudited)


	Three Months Ended June					Six Months Ended June

(In thousands, except per share amounts)		2022		2021			2022		2021
Net revenues		$	613,572	$	490,765		$	1,293,315	$	1,142,527
Costs and operating expenses
Cost of goods sold		346,608		264,641			721,730		615,823
Selling, general and administrative expenses		178,219		190,947			374,619		398,351

Total costs and operating expenses		524,827		455,588			1,096,349		1,014,174
Operating income		88,745		35,177			196,966		128,353
Interest expense		(8,234)		(7,641)			(16,257)		(19,432)
Interest income		296		421			765		679
Other (expense) income, net		(2,746)		45			(2,968)		(397)
Income before income taxes		78,061		28,002			178,506		109,203
Income taxes		16,066		4,365			35,701		21,103
Net income		$	61,995	$	23,637		$	142,805	$	88,100
Earnings per common share
Basic		$	1.11	$	0.41		$	2.55	$	1.53
Diluted		$	1.09	$	0.40		$	2.49	$	1.49
Weighted average shares outstanding
Basic		55,740		57,612			56,031		57,478
Diluted		56,711		59,356			57,315		59,129

See accompanying notes to unaudited consolidated financial statements.

Kontoor Brands, Inc. Q2 FY22 Form 10-Q 4

KONTOOR BRANDS, INC.

Consolidated Statements of Comprehensive Income

(Unaudited)


	Three Months Ended June					Six Months Ended June

(In thousands)		2022		2021			2022		2021
Net income		$	61,995	$	23,637		$	142,805	$	88,100
Other comprehensive (loss) income
Net change in foreign currency translation		(13,274)		4,068			(16,889)		(3,014)
Net change in defined benefit pension plans		5		(11)			11		63
Net change in derivative financial instruments		5,009		3,671			17,677		8,789
Total other comprehensive (loss) income, net of related taxes		(8,260)		7,728			799		5,838
Comprehensive income		$	53,735	$	31,365		$	143,604	$	93,938

See accompanying notes to unaudited consolidated financial statements.

5 Kontoor Brands, Inc. Q2 FY22 Form 10-Q

KONTOOR BRANDS, INC.

Consolidated Statements of Cash Flows

(Unaudited)


	Six Months Ended June

(In thousands)	2022		2021
OPERATING ACTIVITIES
Net income	$	142,805	$	88,100
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	18,821		17,749
Stock-based compensation	12,474		20,660
Provision for doubtful accounts	308		783

Other	4,826		5,788
Changes in operating assets and liabilities:
Accounts receivable	95,340		14,315
Inventories	(179,019)		(63,006)
Accounts payable	70,974		31,822
Income taxes	(13,090)		3,075
Accrued liabilities	(47,907)		4,791
Other assets and liabilities	(6,144)		(3,912)
Cash provided by operating activities	99,388		120,165
INVESTING ACTIVITIES
Property, plant and equipment expenditures	(6,995)		(3,320)
Capitalized computer software	(4,493)		(16,993)

Other	(120)		(902)
Cash used by investing activities	(11,608)		(21,215)
FINANCING ACTIVITIES




Repayments of term loans	—		(125,000)
Repurchases of Common Stock	(62,494)		—
Dividends paid	(51,508)		(46,016)
Shares withheld for taxes, net of proceeds from issuance of Common Stock	(11,024)		663
Other	4,330		(176)
Cash used by financing activities	(120,696)		(170,529)
Effect of foreign currency rate changes on cash and cash equivalents	(7,110)		(931)
Net change in cash and cash equivalents	(40,026)		(72,510)
Cash and cash equivalents – beginning of period	185,322		248,138
Cash and cash equivalents – end of period	$	145,296	$	175,628

See accompanying notes to unaudited consolidated financial statements.

Kontoor Brands, Inc. Q2 FY22 Form 10-Q 6

KONTOOR BRANDS, INC.

Consolidated Statements of Equity

(Unaudited)



	Common Stock			Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Total Equity
(In thousands, except per share amounts)	Shares	Amounts

Balance, December 2021	56,381	$	—	$	218,259	$	22,635	$	(92,756)	$	148,138
Net income	—	—		—		80,810		—		80,810
Stock-based compensation, net	387	—		6,462		(11,833)		—		(5,371)
Other comprehensive income	—	—		—		—		9,059		9,059
Dividends on Common Stock ($0.46 per share)	—	—		—		(26,033)		—		(26,033)
Repurchases of Common Stock	(492)	—		—		(22,513)		—		(22,513)
Balance, March 2022	56,276	$	—	$	224,721	$	43,066	$	(83,697)	$	184,090
Net income	—	—		—		61,995		—		61,995
Stock-based compensation, net	109	—		7,320		(500)		—		6,820
Other comprehensive loss	—	—		—		—		(8,260)		(8,260)
Dividends on Common Stock ($0.46 per share)	—	—		—		(25,475)		—		(25,475)
Repurchases of Common Stock	(1,003)	—		—		(39,981)		—		(39,981)
Balance, June 2022	55,382	$	—	$	232,041	$	39,105	$	(91,957)	$	179,189


	Common Stock			Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Total Equity

(In thousands, except per share amounts)	Shares	Amounts

Balance, December 2020	57,255	$	—	$	172,297	$	7,151	$	(94,807)	$	84,641
Net income	—	—		—		64,463		—		64,463
Stock-based compensation, net	259	—		14,472		(4,458)		—		10,014
Other comprehensive loss	—	—		—		—		(1,890)		(1,890)
Dividends on Common Stock ($0.40 per share)	—	—		—		(22,964)		—		(22,964)
Balance, March 2021	57,514	$	—	$	186,769	$	44,192	$	(96,697)	$	134,264
Net income	—	—		—		23,637		—		23,637
Stock-based compensation, net	118	—		12,007		(698)		—		11,309
Other comprehensive income	—	—		—		—		7,728		7,728
Dividends on Common Stock ($0.40 per share)	—	—		—		(23,052)		—		(23,052)
Balance, June 2021	57,632	$	—	$	198,776	$	44,079	$	(88,969)	$	153,886

See accompanying notes to unaudited consolidated financial statements.

7 Kontoor Brands, Inc. Q2 FY22 Form 10-Q

KONTOOR BRANDS, INC.

Notes to Consolidated Financial Statements

(Unaudited)

NOTE 1 — BASIS OF PRESENTATION

Description of Business

Kontoor Brands, Inc. ("Kontoor," the "Company," "we," "us" or "our") is a global lifestyle apparel company headquartered in the United States ("U.S."). The Company designs, produces, procures, markets and distributes apparel, footwear and accessories, primarily under the brand names Wrangler® and Lee®. The Company's products are sold in the U.S. through mass merchants, specialty stores, mid-tier and traditional department stores, company-operated stores and online. The Company's products are also sold internationally, primarily in the Europe and Asia-Pacific regions, through department, specialty, company-operated, concession retail and independently-operated partnership stores and online.

Fiscal Year

The Company operates and reports using a 52/53-week fiscal year ending on the Saturday closest to December 31 of each year. Accordingly, this Form 10-Q presents the second quarter of the Company's fiscal year ending December 31, 2022 ("fiscal 2022"), which is a 52-week fiscal year. For presentation purposes herein, all references to periods ended June 2022, December 2021 and June 2021 correspond to the fiscal periods ended July 2, 2022, January 1, 2022 and July 3, 2021, respectively.

Impact of COVID-19 and Other Recent Developments

The novel coronavirus (“COVID-19”) pandemic and related supply chain and market disruptions continue to adversely impact global economic conditions, as well as the Company's operations. Additionally, although we do not have any significant operations within Russia or Ukraine, the conflict in these regions has caused disruption in the surrounding areas and greater uncertainty in the global economy. The Company considered the impact of these developments on the assumptions and estimates used when preparing these quarterly financial statements including, but not limited to, our allowance for doubtful accounts, inventory valuations, liabilities for variable consideration and contract termination, deferred tax valuation allowances, fair value measurements including asset impairment evaluations, the effectiveness of the Company’s hedging instruments, and expected compliance with all applicable financial covenants in our Credit Agreement (as defined in Note 6 to the Company's financial statements). These assumptions and estimates may change as new events occur and additional information is obtained regarding the impact of COVID-19 and the Russia-Ukraine conflict. Such future changes may have an adverse impact on the Company's results of operations, financial position and liquidity.

Basis of Presentation - Interim Financial Statements

The accompanying unaudited interim financial statements have been prepared in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X and do not include all of the information and notes required by generally accepted accounting principles in the U.S. ("GAAP") for complete financial statements. In the opinion of management, the accompanying financial statements contain all normal and recurring adjustments necessary to fairly state the financial position, results of operations and cash flows of the Company for the interim periods presented. Operating results for the three and six months ended June 2022 are not necessarily indicative of results that may be expected for any other interim period or for fiscal 2022. The unaudited financial statements should be read in conjunction with the audited consolidated and combined financial statements included in the Company's 2021 Annual Report on Form 10-K for the fiscal year ended January 1, 2022, as filed with the Securities and Exchange Commission on March 2, 2022 ("2021 Annual Report on Form 10-K").

Recently Issued Accounting Standard

In March 2020, the Financial Accounting Standards Board issued Accounting Standards Update 2020-04, “Facilitation of the Effects of Reference Rate Reform on Financial Reporting,” which is intended to provide temporary optional expedients and exceptions for applying GAAP to contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate ("LIBOR") and other interbank offered rates to alternative reference rates. This guidance was effective upon issuance and the Company may adopt the guidance and apply it prospectively to contract modifications made or relationships entered into or evaluated any time from the issuance date through December 31, 2022. The Company will continue to evaluate the impact that adoption of this guidance would have on its financial statements and related disclosures, most notably the Company's credit facilities and interest rate swap agreements, which is not expected to be significant.

Kontoor Brands, Inc. Q2 FY22 Form 10-Q 8

KONTOOR BRANDS, INC.

Notes to Consolidated Financial Statements

(Unaudited)

NOTE 2 — REVENUES

Contract Balances and Performance Obligations

The following table presents information about contract balances recorded in the Company's balance sheets:


(In thousands)	June 2022		December 2021		June 2021
Accounts receivable, net	$	185,157	$	289,800	$	215,297
Contract assets (a)	5,648		3,093		4,694
Contract liabilities (b)	3,227		2,258		674

(a) Included within "prepaid expenses and other current assets" in the Company's balance sheets.

(b) Included within "accrued liabilities" in the Company's balance sheets.

For the three and six months ended June 2022 and June 2021, revenue recognized that was included in contract liabilities as of December 2021 and December 2020, respectively, was not significant.

As of June 2022, the Company has contractual rights under its licensing agreements to receive $41.4 million of fixed consideration related to the future minimum guarantees through December 2027. As of June 2022, there were no arrangements with any transaction price allocated to remaining performance obligations other than (i) contracts for which the Company has applied the practical expedients and (ii) fixed consideration related to future minimum guarantees. For the three and six months ended June 2022, revenue recognized from performance obligations satisfied, or partially satisfied, in prior periods was not significant. The variable consideration under these arrangements is not disclosed as a remaining performance obligation as the licensing arrangements qualify for the sales-based royalty exemption.

Disaggregation of Revenue

The following tables present revenues disaggregated by channel and geography. Revenues from licensing arrangements have been included within the U.S. or Non-U.S. Wholesale channels, based on the respective region where the licensee sells the product. Direct-to-Consumer revenues include sales at Wrangler® and Lee® branded full-price stores and company-operated outlet stores, digital sales at www.wrangler.com and www.lee.com and sales from international concession arrangements.

Other primarily includes other revenue sources, including sales and licensing of Rock & Republic® apparel. Other also included sales of third-party branded merchandise at company-owned outlet stores through the first quarter of 2021.


	Three Months Ended June 2022

(In thousands)	Wrangler		Lee		Other		Total

Channel revenues
U.S. Wholesale	$	348,537	$	120,197	$	2,127	$	470,861
Non-U.S. Wholesale	40,457		39,858		374		80,689
Direct-to-Consumer	28,950		32,998		74		62,022

Total	$	417,944	$	193,053	$	2,575	$	613,572

Geographic revenues
U.S.	$	372,981	$	135,057	$	2,201	$	510,239
International	44,963		57,996		374		103,333
Total	$	417,944	$	193,053	$	2,575	$	613,572

9 Kontoor Brands, Inc. Q2 FY22 Form 10-Q

KONTOOR BRANDS, INC.

Notes to Consolidated Financial Statements

(Unaudited)


	Three Months Ended June 2021

(In thousands)	Wrangler		Lee		Other		Total
Channel revenues
U.S. Wholesale	$	245,200	$	79,312	$	2,434	$	326,946
Non-U.S. Wholesale	41,071		55,690		805		97,566
Direct-to-Consumer	25,030		41,012		8		66,050
Other	—		—		203		203
Total	$	311,301	$	176,014	$	3,450	$	490,765

Geographic revenues
U.S.	$	266,146	$	96,179	$	2,645	$	364,970
International	45,155		79,835		805		125,795
Total	$	311,301	$	176,014	$	3,450	$	490,765



	Six Months Ended June 2022

(In thousands)	Wrangler		Lee		Other		Total

Channel revenues
U.S. Wholesale	$	679,189	$	257,003	$	4,654	$	940,846
Non-U.S. Wholesale	93,276		130,909		875		225,060
Direct-to-Consumer	57,902		69,361		146		127,409

Total	$	830,367	$	457,273	$	5,675	$	1,293,315

Geographic revenues
U.S.	$	727,374	$	285,173	$	4,800	$	1,017,347
International	102,993		172,100		875		275,968
Total	$	830,367	$	457,273	$	5,675	$	1,293,315



	Six Months Ended June 2021

(In thousands)	Wrangler		Lee		Other		Total
Channel revenues
U.S. Wholesale	$	574,899	$	203,894	$	4,160	$	782,953
Non-U.S. Wholesale	88,648		146,490		1,442		236,580
Direct-to-Consumer	46,576		75,778		13		122,367
Other	—		—		627		627
Total	$	710,123	$	426,162	$	6,242	$	1,142,527

Geographic revenues
U.S.	$	614,025	$	234,411	$	4,800	$	853,236
International	96,098		191,751		1,442		289,291
Total	$	710,123	$	426,162	$	6,242	$	1,142,527

Kontoor Brands, Inc. Q2 FY22 Form 10-Q 10

KONTOOR BRANDS, INC.

Notes to Consolidated Financial Statements

(Unaudited)

NOTE 3 — BUSINESS SEGMENT INFORMATION

The Company has two reportable segments:

•Wrangler — Wrangler® branded denim, apparel and accessories.

•Lee — Lee® branded denim, apparel and accessories.

The chief operating decision maker allocates resources and assesses performance based on a global brand view which determines the Company's operating segments. Operating segments are the basis for the Company's reportable segments.

In addition, we report an "Other" category in order to reconcile segment revenues and segment profit to the Company's operating results, but the Other category is not considered a reportable segment based on evaluation of aggregation criteria. Other primarily includes other revenue sources, including sales and licensing of Rock & Republic® apparel.

Accounting policies utilized for internal management reporting at the individual segments are consistent with those disclosed in the Company's 2021 Annual Report on Form 10-K. Corporate and other expenses and interest income and expense are not controlled by segment management and therefore are excluded from the measurement of segment profit.

The following table presents financial information for the Company's reportable segments and income before income taxes:


	Three Months Ended June					Six Months Ended June

(In thousands)		2022		2021			2022		2021
Segment revenues:
Wrangler		$	417,944	$	311,301		$	830,367	$	710,123
Lee		193,053		176,014			457,273		426,162
Total reportable segment revenues		610,997		487,315			1,287,640		1,136,285
Other revenues		2,575		3,450			5,675		6,242
Total net revenues		$	613,572	$	490,765		$	1,293,315	$	1,142,527
Segment profit:
Wrangler		$	75,064	$	52,834		$	150,452	$	136,817
Lee		22,904		18,491			75,134		69,614
Total reportable segment profit		$	97,968	$	71,325		$	225,586	$	206,431
Corporate and other expenses		(12,017)		(36,983)			(31,999)		(78,534)
Interest expense		(8,234)		(7,641)			(16,257)		(19,432)
Interest income		296		421			765		679
Profit related to other revenues		48		880			411		59
Income before income taxes		$	78,061	$	28,002		$	178,506	$	109,203

11 Kontoor Brands, Inc. Q2 FY22 Form 10-Q

KONTOOR BRANDS, INC.

Notes to Consolidated Financial Statements

(Unaudited)

NOTE 4 — ACCOUNTS RECEIVABLE

Allowance for Doubtful Accounts

The Company reviews the estimates used to calculate the allowance for doubtful accounts on a quarterly basis.

The following table presents a rollforward of the allowance for doubtful accounts:


	Six Months Ended June

(In thousands)		2022		2021

Balance, December		$	11,705	$	19,143
Provision for expected credit losses		308		783
Accounts receivable balances written off (1)		(576)		(4,119)
Other (2)		(869)		(325)
Balance, June		$	10,568	$	15,482

(1) Accounts receivable balances written off against the allowance were primarily due to the exit of our India business during 2021.

(2) Other primarily includes the impact of foreign currency translation and recoveries of amounts previously written off, none of which were individually significant.

Sale of Trade Accounts Receivable

The Company is party to an agreement with a financial institution to sell selected trade accounts receivable on a nonrecourse basis. Under this agreement, up to $377.5 million of the Company’s trade accounts receivable may be sold to the financial institution and remain outstanding at any point in time. The Company removes the sold balances from "accounts receivable, net" in its balance sheet at the time of sale. The Company does not retain any interests in the sold trade accounts receivable but continues to service and collect outstanding trade accounts receivable on behalf of the financial institution.

During the six months ended June 2022 and June 2021, the Company sold total trade accounts receivable of $732.9 million and $586.8 million, respectively. As of June 2022, December 2021 and June 2021, $212.8 million, $170.6 million and $183.0 million, respectively, of the sold trade accounts receivable had been removed from the Company's balance sheets but remained outstanding with the financial institution.

The funding fees charged by the financial institution for this program are reflected in the Company's statements of operations within "other (expense) income, net" and were $0.9 million and $1.5 million for the three and six months ended June 2022, respectively, and $0.3 million and $0.9 million for the three and six months ended June 2021, respectively. Net proceeds of this program are reflected as operating activities in the Company's statements of cash flows.

NOTE 5 — INVENTORIES

The following table presents components of "inventories" recorded in the Company's balance sheets:


(In thousands)	June 2022		December 2021		June 2021
Finished products	$	444,976	$	293,427	$	342,276
Work-in-process	40,018		32,346		29,551
Raw materials	52,906		37,184		31,422
Total inventories	$	537,900	$	362,957	$	403,249

NOTE 6 — SHORT-TERM BORROWINGS AND LONG-TERM DEBT

Short-term Borrowings

At June 2022, December 2021 and June 2021, the Company had $25.6 million, $10.1 million and $36.0 million, respectively, of borrowing availability under international lines of credit with various banks, which are uncommitted and may be terminated at any time by either the Company or the banks. There was $4.6 million of outstanding balances under these arrangements at June 2022, and no outstanding balances at December 2021 and June 2021. In addition, short-term borrowings at June 2022, December 2021 and June 2021 included other debt of $0.2 million, $0.2 million and $0.9 million, respectively.

Kontoor Brands, Inc. Q2 FY22 Form 10-Q 12

KONTOOR BRANDS, INC.

Notes to Consolidated Financial Statements

(Unaudited)

Long-term Debt

The following table presents the components of long-term debt as recorded in the Company's balance sheets:


(In thousands)	June 2022		December 2021		June 2021
Revolving Credit Facility	$	—	$	—	$	—
Term Loan A	397,691		397,427		660,334
Term Loan B	—		—		130,678
4.125% Notes, due 2029