##### Table of Contents









UNITED STATES SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549





Form 10-K


|  |  |                                                                                             
|- |  | --------------------------------------------------------------------------------------------
|þ |  | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934    
|  |  | For the Fiscal Year Ended January 1, 2005                                                   
|  |  | OR                                                                                          
| 
|o |  | 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 0-13365


OshKosh BGosh, Inc.


(Exact name of registrant as specified in its charter)


|                                                                    |  |                                          
|------------------------------------------------------------------- |  | -----------------------------------------
|Delaware                                                            |  | 39-0519915                               
|(State or other jurisdiction of
     incorporation or organization) |  | (IRS Employer
     Identification Number)

112 Otter Avenue


Oshkosh, Wisconsin 54901


(Address of principal executive offices)


(920) 231-8800


(Registrants telephone number, including area code)


Securities registered pursuant to Section 12(b) of the
Act:


NONE


Securities registered pursuant to Section 12(g) of the
Act:


Class A Common Stock, Par Value $.01 per share


þ o


o


þ o






DOCUMENTS INCORPORATED BY REFERENCE












---










INDEX


|                                                               |  |                                                                                                                       |    |                                                      |    |  |    | 
|-------------------------------------------------------------- |  | --------------------------------------------------------------------------------------------------------------------- | -- | ---------------------------------------------------- | -- |  | -- | 
|                                                               |  |                                                                                                                       |    | Page                                                 |   
|                                                               |  |                                                                                                                       |    |                                                      |   
|PART I                                                        
|Item 1.                                                        |  | Business                                                                                                              |    |                                                      | 3  | 
|                                                               |  |                                                                                                                       |    | (a) General Development of Business                  |    |  | 3  | 
|                                                               |  |                                                                                                                       |    | (b) Financial Information About
    Segments         |    |  | 3  | 
|                                                               |  |                                                                                                                       |    | (c) Narrative Description of
    Business            |    |  | 4  | 
|                                                               |  |                                                                                                                       |    | Products                                             |    |  | 4  | 
|                                                               |  |                                                                                                                       |    | Product Design                                       |    |  | 4  | 
|                                                               |  |                                                                                                                       |    | Product Sourcing                                     |    |  | 5  | 
|                                                               |  |                                                                                                                       |    | Merchandise Distribution                             |    |  | 6  | 
|                                                               |  |                                                                                                                       |    | Wholesale Business                                   |    |  | 6  | 
|                                                               |  |                                                                                                                       |    | Retail Business                                      |    |  | 7  | 
|                                                               |  |                                                                                                                       |    | Licensing                                            |    |  | 7  | 
|                                                               |  |                                                                                                                       |    | International Licensing and
    Distribution         |    |  | 8  | 
|                                                               |  |                                                                                                                       |    | Trademarks                                           |    |  | 8  | 
|                                                               |  |                                                                                                                       |    | Seasonality                                          |    |  | 8  | 
|                                                               |  |                                                                                                                       |    | Working Capital                                      |    |  | 8  | 
|                                                               |  |                                                                                                                       |    | Backlog                                              |    |  | 9  | 
|                                                               |  |                                                                                                                       |    | Competitive Conditions                               |    |  | 9  | 
|                                                               |  |                                                                                                                       |    | Environmental Matters                                |    |  | 9  | 
|                                                               |  |                                                                                                                       |    | Employees                                            |    |  | 9  | 
|                                                               |  |                                                                                                                       |    | Business Risks                                       |    |  | 9  | 
|                                                               |  |                                                                                                                       |    | (d) Financial Information About
    Geographic Areas |    |  | 13 | 
|                                                               |  |                                                                                                                       |    | (e) Available Information                            |    |  | 13 | 
|Item 2.                                                        |  | Properties                                                                                                            |    |                                                      | 14 | 
|Item 3.                                                        |  | Legal Proceedings                                                                                                     |    |                                                      | 14 | 
|Item 4.                                                        |  | Submission of Matters to a Vote of Security
    Holders                                                               |    |                                                      | 14 | 
|PART II                                                       
|Item 5.                                                        |  | Market for the Companys Common
    Equity, Related Stockholder Matters and Issuer Purchases of
    Equity Securities |    |                                                      | 15 | 
|Item 6.                                                        |  | Selected Financial Data                                                                                               |    |                                                      | 16 | 
|Item 7.                                                        |  | Managements Discussion and Analysis
    of Financial Condition and Results of Operations                             |    |                                                      | 16 | 
|Item 7A.                                                       |  | Quantitative and Qualitative Disclosures
    About Market Risk                                                        |    |                                                      | 29 | 
|Item 8.                                                        |  | Financial Statements and Supplementary
    Data                                                                       |    |                                                      | 31 | 
|Item 9.                                                        |  | Changes in and Disagreements with
    Accountants on Accounting and Financial Disclosure                              |    |                                                      | 55 | 
|Item 9A.                                                       |  | Controls and Procedures                                                                                               |    |                                                      | 55 | 
|Item 9B.                                                       |  | Other Information                                                                                                     |    |                                                      | 55 | 
|PART III.                                                     
|Item 10.                                                       |  | Directors and Executive Officers of the
    Registrant                                                                |    |                                                      | 55 | 
|Item 11.                                                       |  | Executive Compensation                                                                                                |    |                                                      | 55 | 
|Item 12.                                                       |  | Security Ownership of Certain Beneficial
    Owners and Management and Related Stockholder Matters                    |    |                                                      | 55 | 
|Item 13.                                                       |  | Certain Relationships and Related
    Transactions                                                                    |    |                                                      | 56 | 
|Item 14.                                                       |  | Principal Accountant Fees and Services                                                                                |    |                                                      | 56 | 
|PART IV.                                                      
|Item 15.                                                       |  | Exhibits and Financial Statement
    Schedules                                                                        |    |                                                      | 56 | 
|Signatures                                                     |  |                                                                                                                       | 57 |                                                     
|Exhibit Index                                                  |  |                                                                                                                       | 58 |                                                     
|401(K) Plan, as amended, effective January 1, 2004            
|Pension Plan, as amended, effective January 1, 2005           
|Officers Medical and Dental Reimbursement lan, as amended     
|List of Subsidiaries                                          
|Consent of Deloitte & Touche LLP                              
|Certification by the Chief Executive Officer                  
|Certification by the VP Finance, Treasurer and CFO            
|Section 906 Certification by the CEO                          
|Section 906 Certification by the VP Finance, Treasurer and CFO



2



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PART I







|        |         
|------- | --------
|ITEM 1. | BUSINESS




(a) General Development of Business















(b) Financial Information About Segments






3



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(c) Narrative Description of Business





Products













Product Design








4



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Product Sourcing












5



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##### Table of Contents










Merchandise Distribution











Wholesale Business










6



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Retail Business



















Licensing




7



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International Licensing and Distribution









Trademarks







Seasonality




|                     |  |                        |  |                   
|-------------------- |  | ---------------------- |  | ------------------
|RETAIL SALES SEASON  |  | PRIMARY BOOKING PERIOD |  | SHIPPING PERIOD   
|                     |  |                        |  |                   
|Spring               |  | July-August            |  | December-March    
|Summer               |  | October-November       |  | April-May         
|Fall/ Back-to-School |  | January-February       |  | June-August       
|Winter/ Holiday      |  | April-May              |  | September-November






Working Capital




8



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Backlog







Competitive Conditions











Environmental Matters







Employees







Business Risks




9



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| |            
| | -----------
| | Brand Risks



| |                                                                                                                                     
| | ------------------------------------------------------------------------------------------------------------------------------------
| | The acceptance of our product in the market place is affected
    by consumer tastes and preferences, along with fashion
    trends.





| |                                                                                          
| | -----------------------------------------------------------------------------------------
| | The Companys licensing income is greatly impacted by
    the Companys brand reputation.





| |                                                                                                                                                                      
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The Companys reputation may be severely harmed if
    contractors used to manufacture its clothing engage in practices
    that our consumers believe are unethical.





| |                                                                                      
| | -------------------------------------------------------------------------------------
| | The Company licenses the Genuine Kids from OshKosh®
    label exclusively to Target®.





| |            
| | -----------
| | Sales Risks



| |                                                                                                       
| | ------------------------------------------------------------------------------------------------------
| | The Companys wholesale distribution channel is
    dependent upon a number of key wholesale accounts.



10



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| |                                                                               
| | ------------------------------------------------------------------------------
| | There are deflationary pressures on the selling price of
    apparel products.





| |                                                                                                           
| | ----------------------------------------------------------------------------------------------------------
| | Our business is sensitive to overall levels of consumer
    spending, particularly in the apparel segment.





| |                                                                
| | ---------------------------------------------------------------
| | The childrens wear apparel business is highly
    competitive.





| |                                                                                                    
| | ---------------------------------------------------------------------------------------------------
| | The Companys sales are seasonal with the
    Fall/Back-to-School season as the key selling season.





| |                   
| | ------------------
| | Gross Margin Risks



| |                                                                                                                                      
| | -------------------------------------------------------------------------------------------------------------------------------------
| | The Companys gross margins are influenced by the
    success of its wholesale customers and consumer acceptance of
    its products.



11



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| |                                                                 
| | ----------------------------------------------------------------
| | The Company must continue to reduce the cost of it
    products.





| |                                                                                                                                       
| | --------------------------------------------------------------------------------------------------------------------------------------
| | The Companys products are imported into the United
    States in accordance with international trade and
    U.S. customs procedures.





| |                                                                                                                                                                    
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The majority of the Companys products are sourced
    outside of the United States. This sourcing matrix creates risks
    associated with international business.





| |                                                                                          
| | -----------------------------------------------------------------------------------------
| | The Company is dependent upon a global transportation network
    to import its products.





| |                
| | ---------------
| | Operating Risks



| |                                                                                                                                                          
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------
| | The Companys retail success and future growth is
    dependent upon identifying locations and negotiating appropriate
    lease terms for retail stores.



12



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| |                                                                                                                                                
| | -----------------------------------------------------------------------------------------------------------------------------------------------
| | The Companys success is dependent upon retaining key
    individuals within the organization to execute the
    Companys strategic direction.





| |                                                                                    
| | -----------------------------------------------------------------------------------
| | The Company has made significant financial commitments to its
    Lifestyle stores.






(d) Financial Information About Geographic Areas







(e) Available Information




13



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|        |           
|------- | ----------
|ITEM 2. | PROPERTIES

|                     |  |               |         |  |               |                            
|-------------------- |  | ------------- | ------- |  | ------------- | ---------------------------
|                     |  | Approximate   |         |  |              
|                     |  | Floor Area in |         |  |              
|Location             |  | Square Feet   |         |  | Principal Use
|                     |  |               |         |  |              
|Celina, TN           |  |               | 38,250  |  |               | Laundering                 
|Choloma, Honduras(2) |  |               | 47,000  |  |               | Manufacturing              
|Gainesboro, TN       |  |               | 61,000  |  |               | Available for Sale         
|Liberty, KY          |  |               | 218,000 |  |               | Distribution/Warehousing   
|New York City, NY(1) |  |               | 18,255  |  |               | Sales Offices/Showroom     
|New York City, NY(4) |  |               | 14,000  |  |               | Design Center              
|Oshkosh, WI          |  |               | 99,000  |  |               | Exec. and Operating Offices
|Uman, Mexico(3)      |  |               | 134,000 |  |               | Manufacturing              
|White House, TN      |  |               | 284,000 |  |               | Distribution/Warehousing   








|    |                                                                                                                                                
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Lease expiration date  2007, (2) Lease
    expiration date  2006, (3) Lease expiration
    date  2006, (4) Lease expiration
    date  2008.








|        |                  
|------- | -----------------
|ITEM 3. | LEGAL PROCEEDINGS








|        |                                                    
|------- | ---------------------------------------------------
|ITEM 4. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS



14



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PART II







|        |                                                                                                                      
|------- | ---------------------------------------------------------------------------------------------------------------------
|ITEM 5. | MARKET FOR THE COMPANYS COMMON EQUITY, RELATED
    STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY
    SECURITIES

Quarterly Common Stock Data


|                     |  |             |       |  |           |  |             |           |  |   |           |  |  |     |       |  |           |   |       |  |  |   |       | 
|-------------------- |  | ----------- | ----- |  | --------- |  | ----------- | --------- |  | - | --------- |  |  | --- | ----- |  | --------- | - | ----- |  |  | - | ----- | 
|                     |  | 2004        |       |  | 2003      | 
|                     |  |             |       |  |           | 
|                     |  | Stock Price |       |  |           |  | Stock Price |           |  |  
|                     |  |             |       |  | Dividends |  |             |           |  |   | Dividends | 
|                     |  | High        |       |  | Low       |  |             | per Share |  |   | High      |  |  | Low |       |  | per Share |  
|                     |  |             |       |  |           |  |             |           |  |   |           |  |  |     |       |  |           |  
|Class A Common Stock |  |             |       |  |           |  |             |           |  |   |           |  |  |     |       |  |           |   |       |  |  |   |       | 
|1st                  |  | $           | 23.55 |  |           |  | 20.89       |           |  | $ | 0.11      |  |  | $   | 28.90 |  |           | $ | 22.65 |  |  | $ | 0.07  | 
|2nd                  |  |             | 25.28 |  |           |  | 20.45       |           |  |   | 0.11      |  |  |     | 30.38 |  |           |   | 23.95 |  |  |   | 0.07  | 
|3rd                  |  |             | 24.25 |  |           |  | 18.53       |           |  |   | 0.11      |  |  |     | 27.00 |  |           |   | 23.81 |  |  |   | 0.11  | 
|4th                  |  |             | 22.85 |  |           |  | 17.08       |           |  |   | 0.11      |  |  |     | 27.97 |  |           |   | 20.45 |  |  |   | 0.11  | 
|Class B Common Stock |  |             |       |  |           |  |             |           |  |   |           |  |  |     |       |  |           |   |       |  |  |   |       | 
|1st                  |  |             |      |  |           |  |            |           |  | $ | 0.095     |  |  |     |      |  |           |   |      |  |  | $ | 0.06  | 
|2nd                  |  |             |      |  |           |  |            |           |  |   | 0.095     |  |  |     |      |  |           |   |      |  |  |   | 0.06  | 
|3rd                  |  |             |      |  |           |  |            |           |  |   | 0.095     |  |  |     |      |  |           |   |      |  |  |   | 0.095 | 
|4th                  |  |             |      |  |           |  |            |           |  |   | 0.095     |  |  |     |      |  |           |   |      |  |  |   | 0.095 | 





Issuer Purchases of Equity Securities




15



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|        |                        
|------- | -----------------------
|ITEM 6. | SELECTED FINANCIAL DATA

Financial Highlights


(Dollars in thousands, except per share amounts)


|                      |                                            |                   |   |         |            |  |   |              |      |  |              |         |       |              |   |         |      |  |   |         |      | 
|--------------------- | ------------------------------------------ | ----------------- | - | ------- | ---------- |  | - | ------------ | ---- |  | ------------ | ------- | ----- | ------------ | - | ------- | ---- |  | - | ------- | ---- | 
|                      |                                            | Year Ended        |  
|                      |                                            |                   |  
|                      |                                            | January 1,        |   |         | January 3, |  |   | December 28, |      |  | December 29, |         |       | December 30, |  
|                      |                                            | 2005              |   |         | 2004       |  |   | 2002         |      |  | 2001         |         |       | 2000         |  
|                      |                                            |                   |   |         |            |  |   |              |      |  |              |         |       |              |  
|Financial results     |                                            |                   |   |         |            |  |   |              |      |  |              |         |       |              |   |         |      |  |   |        
|                      | Net sales                                  |                   | $ | 398,740 |            |  | $ | 417,272      |      |  | $            | 436,989 |       |              | $ | 463,069 |      |  | $ | 453,062 |     
|                      | Net income                                 |                   |   | 13,819  |            |  |   | 7,189        |      |  |              | 32,045  |       |              |   | 32,808  |      |  |   | 32,217  |     
|                      | Return on sales                            |                   |   | 3.5     | %          |  |   | 1.7          | %    |  |              | 7.3     | %     |              |   | 7.1     | %    |  |   | 7.1     | %   
|Financial condition   |                                            |                   |   |         |            |  |   |              |      |  |              |         |       |              |   |         |      |  |   |        
|                      | Working capital                            |                   | $ | 77,776  |            |  | $ | 70,586       |      |  | $            | 71,023  |       |              | $ | 75,423  |      |  | $ | 54,601  |     
|                      | Total assets                               |                   |   | 164,390 |            |  |   | 152,525      |      |  |              | 156,045 |       |              |   | 161,340 |      |  |   | 158,256 |     
|                      | Long-term debt (including current portion) |                   |   |        |            |  |   |             |      |  |              |        |       |              |   | 24,000  |      |  |   | 44,000  |     
|                      | Shareholders equity                       |                   |   | 97,734  |            |  |   | 87,765       |      |  |              | 92,389  |       |              |   | 73,700  |      |  |   | 44,473  |     
|Data per common share |                                            |                   |   |         |            |  |   |              |      |  |              |         |       |              |   |         |      |  |   |        
|                      | Net income                                 |                   |   |         |            |  |   |              |      |  |              |         |       |              |   |         |      |  |   |         |     
|                      |                                            | Basic  Class A   |   | $       | 1.21       |  |   | $            | 0.62 |  |              | $       | 2.65  |              |   | $       | 2.76 |  |   | $       | 2.68 | 
|                      |                                            | Basic  Class B   |   |         | 1.05       |  |   |              | 0.54 |  |              |         | 2.30  |              |   |         | 2.40 |  |   |         | 2.33 | 
|                      |                                            | Diluted  Class A |   |         | 1.17       |  |   |              | 0.60 |  |              |         | 2.54  |              |   |         | 2.61 |  |   |         | 2.58 | 
|                      |                                            | Diluted  Class B |   |         | 1.04       |  |   |              | 0.54 |  |              |         | 2.26  |              |   |         | 2.33 |  |   |         | 2.30 | 
|                      | Cash dividends declared                    |                   |   |         |            |  |   |              |      |  |              |         |       |              |   |         |      |  |   |         |     
|                      |                                            | Class A           |   |         | 0.44       |  |   |              | 0.36 |  |              |         | 0.26  |              |   |         | 0.22 |  |   |         | 0.20 | 
|                      |                                            | Class B           |   |         | 0.38       |  |   |              | 0.31 |  |              |         | 0.225 |              |   |         | 0.19 |  |   |         | 0.17 | 
|                      | Shareholders equity                       |                   |   | 8.31    |            |  |   | 7.55         |      |  |              | 7.73    |       |              |   | 6.03    |      |  |   | 3.65    |     






|        |                                                                                          
|------- | -----------------------------------------------------------------------------------------
|ITEM 7. | MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
    CONDITION AND RESULTS OF OPERATIONS

OVERVIEW








16



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RESULTS OF OPERATIONS




|                                             |  |                                           |       |    |            |  |       |              |  |  |       |   
|-------------------------------------------- |  | ----------------------------------------- | ----- | -- | ---------- |  | ----- | ------------ |  |  | ----- | --
|                                             |  | As a Percentage of Net Sales for the Year |      
|                                             |  | Ended                                     |      
|                                             |  |                                           |      
|                                             |  | January 1,                                |       |    | January 3, |  |       | December 28, | 
|                                             |  | 2005                                      |       |    | 2004       |  |       | 2002         | 
|                                             |  |                                           |       |    |            |  |       |              | 
|Net Sales                                    |  |                                           | 100.0 | %  |            |  | 100.0 | %            |  |  | 100.0 | % 
|Cost of products sold                        |  |                                           | 60.2  | %  |            |  | 63.8  | %            |  |  | 56.5  | % 
|                                             |  |                                           |       |    |            |  |       |              | 
|Gross profit                                 |  |                                           | 39.8  | %  |            |  | 36.2  | %            |  |  | 43.5  | % 
|Selling, general and administrative expenses |  |                                           | 37.9  | %  |            |  | 36.2  | %            |  |  | 34.1  | % 
|Royalty income, net                          |  |                                           | (3.2  | )% |            |  | (2.8  | )            |  |  | (2.3  | ) 
|Gain on sale of assets                       |  |                                           | (0.3  | )% |            |  |      |              |  |  |      |   
|                                             |  |                                           |       |    |            |  |       |              | 
|Operating income                             |  |                                           | 5.4   | %  |            |  | 2.8   | %            |  |  | 11.7  | % 
|Other expense  net                          |  |                                           |      |    |            |  | (0.1  | )%           |  |  | (0.1  | )%
|                                             |  |                                           |       |    |            |  |       |              | 
|Income before income taxes                   |  |                                           | 5.4   | %  |            |  | 2.7   | %            |  |  | 11.6  | % 
|Income taxes                                 |  |                                           | 1.9   | %  |            |  | 1.0   | %            |  |  | 4.3   | % 
|                                             |  |                                           |       |    |            |  |       |              | 
|Net income                                   |  |                                           | 3.5   | %  |            |  | 1.7   | %            |  |  | 7.3   | % 
|                                             |  |                                           |       |    |            |  |       |              | 

17



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| |                      
| | ---------------------
| | 2004 COMPARED TO 2003



| |          
| | ---------
| | Net Sales



|                            |  |               |       |    |        |   |       |       |  |   |       |    |  |   |       |   
|--------------------------- |  | ------------- | ----- | -- | ------ | - | ----- | ----- |  | - | ----- | -- |  | - | ----- | --
|                            |  | Net Sales     |      
|                            |  | (In millions) |      
|                            |  |               |      
|                            |  | Domestic      |       |    |       
|                            |  |               |       |    |       
|                            |  | Wholesale     |       |    | Retail |   |       | Other |  |   | Total |   
|                            |  |               |       |    |        |   |       |       |  |   |       |   
|2004                        |  | $             | 137.8 |    |        | $ | 258.2 |       |  | $ | 2.7   |    |  | $ | 398.7 |   
|2003                        |  | $             | 165.7 |    |        |   | 248.7 |       |  |   | 2.9   |    |  |   | 417.3 |   
|                            |  |               |       |    |        |   |       |       |  |   |       |   
|Increase (decrease)         |  | $             | (27.9 | )  |        | $ | 9.5   |       |  | $ | (0.2  | )  |  | $ | (18.6 | ) 
|Percent increase (decrease) |  |               | (16.8 | )% |        |   | 3.8   | %     |  |   | (6.9  | )% |  |   | (4.5  | )%







| |             
| | ------------
| | Gross Profit





18



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| |                                                    
| | ---------------------------------------------------
| | Selling, General and Administrative Expenses (SG&A)





| |               
| | --------------
| | Royalty Income











| |                       
| | ----------------------
| | Gain on Sale of Assets





| |                 
| | ----------------
| | Operating Income



Wholesale Business




| |                                                                                                                                                                                                                                               
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Despite the reduced sales level, a reduction in number of
    close-out units sold at substantial discounts and reductions in
    operating costs, including selling expenses and distribution
    costs increased wholesale operating income.

19



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Retail Business




| |                                                                                                                                                                                                                  
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Despite a comparable sales growth and enhanced gross profit
    margin, store operating expenses and support costs for its
    Lifestyle stores reduced operating income for the Companys
    retail operations.

Procurement




| |                                                                                                                                                                                                  
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Effective execution of the Companys global sourcing
    strategy by controlling freight costs and production activities
    enhanced the Companys gross profit margin and operating
    income.



| |                             
| | ----------------------------
| | Other Income (Expense)  Net





| |             
| | ------------
| | Income Taxes





| |           
| | ----------
| | Net Income





| |                      
| | ---------------------
| | 2003 COMPARED TO 2002



| |          
| | ---------
| | Net Sales



|                 |  |               |       |    |        |   |       |       |  |   |       |    |  |   |       |   
|---------------- |  | ------------- | ----- | -- | ------ | - | ----- | ----- |  | - | ----- | -- |  | - | ----- | --
|                 |  | Net Sales     |      
|                 |  | (In millions) |      
|                 |  |               |      
|                 |  | Domestic      |       |    |       
|                 |  |               |       |    |       
|                 |  | Wholesale     |       |    | Retail |   |       | Other |  |   | Total |   
|                 |  |               |       |    |        |   |       |       |  |   |       |   
|2003             |  | $             | 165.7 |    |        | $ | 248.7 |       |  | $ | 2.9   |    |  | $ | 417.3 |   
|2002             |  | $             | 182.7 |    |        |   | 250.6 |       |  |   | 3.7   |    |  |   | 437.0 |   
|                 |  |               |       |    |        |   |       |       |  |   |       |   
|Decrease         |  | $             | (17.0 | )  |        | $ | (1.9  | )     |  | $ | (0.8  | )  |  | $ | (19.7 | ) 
|Percent decrease |  |               | (9.3  | )% |        |   | (0.8  | )%    |  |   | (21.6 | )% |  |   | (4.5  | )%





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| |             
| | ------------
| | Gross Profit











| |                                                    
| | ---------------------------------------------------
| | Selling, General and Administrative Expenses (SG&A)





| |               
| | --------------
| | Royalty Income







21



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| |                 
| | ----------------
| | Operating Income





| |                             
| | ----------------------------
| | Other Income (Expense)  Net





| |             
| | ------------
| | Income Taxes





| |           
| | ----------
| | Net Income



SEASONALITY OF BUSINESS




FINANCIAL POSITION, CAPITAL RESOURCES AND LIQUIDITY






22



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CONTRACTUAL OBLIGATIONS AND COMMERCIAL COMMITMENTS




|                        |  |                       |        |           |        |   |        |       |  |     |        |  |       |         |        |  |  |   |        | 
|----------------------- |  | --------------------- | ------ | --------- | ------ | - | ------ | ----- |  | --- | ------ |  | ----- | ------- | ------ |  |  | - | ------ | 
|                        |  | Payment Due by Period |       
|                        |  | (In thousands)        |       
|                        |  |                       |       
|                        |  |                       |        | Less than |        |   | 1-3    |       |  | 4-5 |        |  | After |        
|                        |  | Total                 |        |           | 1 Year |   |        | Years |  |     | Years  |  |       | 5 Years |       
|                        |  |                       |        |           |        |   |        |       |  |     |        |  |       |         |       
|Contractual Obligations |  |                       |        |           |        |   |        |       |  |     |        |  |       |         |        |  |  |   |        | 
|Long-term debt          |  | $                     |       |           |        | $ |       |       |  | $   |       |  |       | $       |       |  |  | $ |       | 
|Capital leases          |  |                       |       |           |        |   |       |       |  |     |       |  |       |         |       |  |  |   |       | 
|Operating leases        |  |                       | 70,500 |           |        |   | 19,111 |       |  |     | 22,904 |  |       |         | 12,996 |  |  |   | 15,489 | 
|Employment contract(1)  |  |                       | 1,230  |           |        |   | 410    |       |  |     | 820    |  |       |         |       |  |  |   |       | 

|                              |  |                                             |        |           |        |   |        |       |  |     |       |  |       |         |       |  |  |   |     | 
|----------------------------- |  | ------------------------------------------- | ------ | --------- | ------ | - | ------ | ----- |  | --- | ----- |  | ----- | ------- | ----- |  |  | - | --- | 
|                              |  | Amounts of Commitment Expiration per Period |       
|                              |  | (In thousands)                              |       
|                              |  |                                             |       
|                              |  |                                             |        | Less than |        |   | 1-3    |       |  | 4-5 |       |  | After |        
|                              |  | Total                                       |        |           | 1 Year |   |        | Years |  |     | Years |  |       | 5 Years |      
|                              |  |                                             |        |           |        |   |        |       |  |     |       |  |       |         |      
|Other Commercial Commitments  |  |                                             |        |           |        |   |        |       |  |     |       |  |       |         |       |  |  |   |     | 
|Working capital facility      |  | $                                           |       |           |        | $ |       |       |  | $   |      |  |       | $       |      |  |  | $ |    | 
|Purchase obligations(2)       |  |                                             | 44,712 |           |        |   | 44,712 |       |  |     |      |  |       |         |      |  |  |   |    | 
|Merchandise Letters of Credit |  |                                             | 11,825 |           |        |   | 11,825 |       |  |     |      |  |       |         |      |  |  |   |    | 
|Standby Letters of Credit     |  |                                             | 400    |           |        |   | 400    |       |  |     |      |  |       |         |      |  |  |   |    | 
|Employee benefit plans        |  |                                             | 3,788  |           |        |   | 501    |       |  |     | 1,200 |  |       |         | 1,249 |  |  |   | 838 | 






|    |                                                                                                                                                                                              
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Includes base salary only. Employment contract also provides for
    other compensation, including annual incentive performance cash
    bonus, stock-based compensation and fringe benefits.
|   
|(2) | Represents purchase orders for inventory commitments.                                                                                                                                        

NEW ACCOUNTING PRONOUNCEMENTS








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CRITICAL ACCOUNTING POLICIES






Revenue Recognition








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| |        
| | -------
| | Returns





| |               
| | --------------
| | Margin Support





| |                    
| | -------------------
| | Advertising Support



Accounts Receivable, Net










Inventories




26



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Accrued Expenses




Income Taxes




Stock-Based Compensation








APPLICATION OF CRITICAL ACCOUNTING POLICIES AND ESTIMATES






27



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FORWARD OUTLOOK












FORWARD-LOOKING STATEMENTS




28



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|         |                                                               
|-------- | --------------------------------------------------------------
|ITEM 7A. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
    RISK

Interest Rate Risk




Foreign Currency Risk




Inflation Risk




29



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Investment Risk


Cash and cash equivalents and
Investments sections


30



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|        |                                            
|------- | -------------------------------------------
|ITEM 8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

|                                                                                                                                            |  |      |    | 
|------------------------------------------------------------------------------------------------------------------------------------------- |  | ---- | -- | 
|                                                                                                                                            |  | Page |   
|                                                                                                                                            |  |      |   
|Report of Independent Registered Public
    Accounting Firm                                                                                 |  |      | 32 | 
|Management Report on Internal Control over
    Financial Reporting                                                                          |  |      | 33 | 
|Report of Independent Registered Public
    Accounting Firm                                                                                 |  |      | 34 | 
|Consolidated Balance Sheets 
    January 1, 2005 and January 3, 2004                                                                       |  |      | 36 | 
|Consolidated Statements of
    Income  years ended January 1, 2005,
    January 3, 2004 and December 28, 2002                              |  |      | 37 | 
|Consolidated Statements of Changes in
    Shareholders Equity  years ended
    January 1, 2005, January 3, 2004 and December 28,
    2002 |  |      | 38 | 
|Consolidated Statements of Cash
    Flows  years ended January 1, 2005,
    January 3, 2004 and December 28, 2002                          |  |      | 39 | 
|Notes to Consolidated Financial
    Statements                                                                                              |  |      | 40 | 

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM





















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MANAGEMENT REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING




Internal Control  Integrated Framework,




OSHKOSH BGOSH, INC.


|    |  |                                                                                                  |  |     |  |                                                                                                                 
|--- |  | ------------------------------------------------------------------------------------------------ |  | --- |  | ----------------------------------------------------------------------------------------------------------------
|   
|By: |  | /s/ DOUGLAS W. HYDEDouglas
    W. Hyde
    Chairman of the Board and
    Chief Executive Officer |  | By: |  | /s/ MICHAEL L. HEIDERMichael
    L. Heider
    Vice President Finance,
    Treasurer and Chief Financial Officer

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM






Internal Control 
Integrated Framework








Internal
Control  Integrated Framework Internal Control  Integrated


34



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OSHKOSH BGOSH, INC. AND SUBSIDIARIES


Consolidated Balance Sheets


(Dollars in thousands, except per share amounts)


|                                           |                                                   |                                                                                                                                |         |        |            |   |         |        |    | 
|------------------------------------------ | ------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------ | ------- | ------ | ---------- | - | ------- | ------ | -- | 
|                                           |                                                   | January 1,                                                                                                                     |         |        | January 3, |  
|                                           |                                                   | 2005                                                                                                                           |         |        | 2004       |  
|                                           |                                                   |                                                                                                                                |         |        |            |  
|ASSETS                                    
|Current assets                             |                                                   |                                                                                                                                |         |        |            |   |         |       
|                                           | Cash and cash equivalents                         |                                                                                                                                | $       | 3,608  |            |   | $       | 3,456  |   
|                                           | Investments                                       |                                                                                                                                |         | 34,070 |            |   |         | 20,475 |   
|                                           | Accounts receivable, net                          |                                                                                                                                |         | 12,428 |            |   |         | 16,669 |   
|                                           | Inventories                                       |                                                                                                                                |         | 61,044 |            |   |         | 61,358 |   
|                                           | Prepaid expenses and other current assets         |                                                                                                                                |         | 10,242 |            |   |         | 8,316  |   
|                                           | Deferred income taxes                             |                                                                                                                                |         | 7,750  |            |   |         | 10,100 |   
|                                           |                                                   |                                                                                                                                |         |        |            |  
|Total current assets                       |                                                   |                                                                                                                                | 129,142 |        |            |   | 120,374 |       
|Property, plant and equipment, net         |                                                   |                                                                                                                                | 29,130  |        |            |   | 24,296  |       
|Deferred income taxes                      |                                                   |                                                                                                                                | 950     |        |            |   | 2,000   |       
|Other assets                               |                                                   |                                                                                                                                | 5,168   |        |            |   | 5,855   |       
|                                           |                                                   |                                                                                                                                |         |        |            |  
|Total assets                               |                                                   | $                                                                                                                              | 164,390 |        |            | $ | 152,525 |       
|                                           |                                                   |                                                                                                                                |         |        |            |  
|                                          
|LIABILITIES AND SHAREHOLDERS EQUITY      
|Current liabilities                        |                                                   |                                                                                                                                |         |        |            |   |         |       
|                                           | Accounts payable                                  |                                                                                                                                | $       | 18,169 |            |   | $       | 16,961 |   
|                                           | Accrued liabilities                               |                                                                                                                                |         | 33,197 |            |   |         | 32,827 |   
|                                           |                                                   |                                                                                                                                |         |        |            |  
|Total current liabilities                  |                                                   |                                                                                                                                | 51,366  |        |            |   | 49,788  |       
|Deferred rent                              |                                                   |                                                                                                                                | 4,037   |        |            |   | 1,325   |       
|Employee benefit plan liabilities          |                                                   |                                                                                                                                | 11,253  |        |            |   | 13,647  |       
|Shareholders equity                       |                                                   |                                                                                                                                |         |        |            |   |         |       
|                                           | Preferred stock, par value $.01 per share:        |                                                                                                                                |         |        |            |   |         |        |   
|                                           |                                                   | Authorized  1,000,000 shares; Issued and
    Outstanding  None                                                               |         |        |           |   |         |        |   | 
|                                           | Common stock, par value $.01 per share:           |                                                                                                                                |         |        |            |   |         |        |   
|                                           |                                                   | Class A, authorized  30,000,000 shares;
    Issued and Outstanding  9,579,330 shares in
    2004,  9,436,869 shares in 2003 |         |        | 95         |   |         |        | 94 | 
|                                           |                                                   | Class B, authorized  4,425,000 shares;
    Issued and Outstanding  2,182,926 shares in
    2004,  2,184,261 shares in 2003  |         |        | 22         |   |         |        | 22 | 
|                                           | Additional paid-in capital                        |                                                                                                                                |         | 3,726  |            |   |         |       |   
|                                           | Retained earnings                                 |                                                                                                                                |         | 96,426 |            |   |         | 87,649 |   
|                                           | Unearned compensation under restricted stock plan |                                                                                                                                |         | (2,535 | )          |   |         |       |   
|                                           |                                                   |                                                                                                                                |         |        |            |  
|Total shareholders equity                 |                                                   |                                                                                                                                | 97,734  |        |            |   | 87,765  |       
|                                           |                                                   |                                                                                                                                |         |        |            |  
|Total liabilities and shareholders equity |                                                   | $                                                                                                                              | 164,390 |        |            | $ | 152,525 |       
|                                           |                                                   |                                                                                                                                |         |        |            |  



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OSHKOSH BGOSH, INC. AND SUBSIDIARIES





Consolidated Statements of Income


(Dollars in thousands, except per share amounts)


|                                             |                   |                    |         |      |            |   |         |              |   |   |         |        |  
|-------------------------------------------- | ----------------- | ------------------ | ------- | ---- | ---------- | - | ------- | ------------ | - | - | ------- | ------ | -
|                                             |                   | For the Year Ended |        
|                                             |                   |                    |        
|                                             |                   | January 1,         |         |      | January 3, |   |         | December 28, |  
|                                             |                   | 2005               |         |      | 2004       |   |         | 2002         |  
|                                             |                   |                    |         |      |            |   |         |              |  
|Net sales                                    |                   | $                  | 398,740 |      |            | $ | 417,272 |              |   | $ | 436,989 |       
|Cost of products sold                        |                   |                    | 240,180 |      |            |   | 266,119 |              |   |   | 246,744 |       
|                                             |                   |                    |         |      |            |   |         |              |  
|Gross profit                                 |                   |                    | 158,560 |      |            |   | 151,153 |              |   |   | 190,245 |       
|Selling, general and administrative expenses |                   |                    | 151,185 |      |            |   | 151,251 |              |   |   | 148,947 |       
|Royalty income, net                          |                   |                    | (12,972 | )    |            |   | (11,688 | )            |   |   | (10,188 | )     
|(Gain) loss on sale of assets                |                   |                    | (1,140  | )    |            |   | (158    | )            |   |   | 84      |       
|                                             |                   |                    |         |      |            |   |         |              |  
|Operating income                             |                   |                    | 21,487  |      |            |   | 11,748  |              |   |   | 51,402  |       
|                                             |                   |                    |         |      |            |   |         |              |  
|Other income (expense):                      |                   |                    |         |      |            |   |         |              |   |   |         |       
|                                             | Interest expense  |                    |         | (222 | )          |   |         | (718         | ) |   |         | (1,097 | )
|                                             | Interest income   |                    |         | 308  |            |   |         | 200          |   |   |         | 528    |  
|                                             | Miscellaneous     |                    |         | 22   |            |   |         | 4            |   |   |         | 28     |  
|                                             |                   |                    |         |      |            |   |         |              |  
|Other income (expense)  net                 |                   |                    | 108     |      |            |   | (514    | )            |   |   | (541    | )     
|                                             |                   |                    |         |      |            |   |         |              |  
|Income before income taxes                   |                   |                    | 21,595  |      |            |   | 11,234  |              |   |   | 50,861  |       
|Income taxes                                 |                   |                    | 7,776   |      |            |   | 4,045   |              |   |   | 18,816  |       
|                                             |                   |                    |         |      |            |   |         |              |  
|Net income                                   |                   | $                  | 13,819  |      |            | $ | 7,189   |              |   | $ | 32,045  |       
|                                             |                   |                    |         |      |            |   |         |              |  
|Net income per common share                  |                   |                    |         |      |            |   |         |              |   |   |         |       
|                                             | Basic  Class A   |                    | $       | 1.21 |            |   | $       | 0.62         |   |   | $       | 2.65   |  
|                                             | Basic  Class B   |                    | $       | 1.05 |            |   | $       | 0.54         |   |   | $       | 2.30   |  
|                                             | Diluted  Class A |                    | $       | 1.17 |            |   | $       | 0.60         |   |   | $       | 2.54   |  
|                                             | Diluted  Class B |                    | $       | 1.04 |            |   | $       | 0.54         |   |   | $       | 2.26   |  



37



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OSHKOSH BGOSH, INC. AND SUBSIDIARIES


Consolidated Statements of Changes in Shareholders
Equity


(Amounts in thousands, except per share amounts)


|                                                     |                             |              |        |   |         |   |     |            |          |              |          |   |       |            |    |   |          |   |         |            |  |   |        |        |   |   |        |   | 
|---------------------------------------------------- | --------------------------- | ------------ | ------ | - | ------- | - | --- | ---------- | -------- | ------------ | -------- | - | ----- | ---------- | -- | - | -------- | - | ------- | ---------- |  | - | ------ | ------ | - | - | ------ | - | 
|                                                     |                             | Common Stock |        |   |         |   |     |            |         
|                                                     |                             |              |        |   |         |   |     |            | Unearned |             
|                                                     |                             |              |        |   |         |   |     |            |          | Compensation |         
|                                                     |                             | Class A      |        |   | Class B |   |     | Additional |          |              |          |   | Under |           
|                                                     |                             |              |        |   |         |   |     | Paid-In    |          |              | Retained |   |       | Restricted |   
|                                                     |                             | Shares       |        |   | Amount  |   |     | Shares     |          |              | Amount   |   |       | Capital    |    |   | Earnings |   |         | Stock Plan | 
|                                                     |                             |              |        |   |         |   |     |            |          |              |          |   |       |            |    |   |          |   |         |            | 
|Balance  December 29, 2001                          |                             |              | 10,020 |   |         | $ | 100 |            |          |              | 2,208    |   |       | $          | 22 |   |          | $ | 5,339   |            |  | $ | 68,551 |        |   | $ | (312   | )
|Net income                                           |                             |              |       |   |         |   |    |            |          |              |         |   |       |            |   |   |          |   |        |            |  |   | 32,045 |        |   |   |       |  
|Dividends                                            |                             |              |        |   |         |   |     |            |          |              |          |   |       |            |    |   |          |   |         |            |  |   |        |        |   |   |        |  
|                                                     |  Class A ($.26 per share)  |              |        |  |         |   |     |           |          |              |          |  |       |            |    |  |          |   |         |           |  |   |        | (2,635 | ) |   |        |  | 
|                                                     |  Class B ($.225 per share) |              |        |  |         |   |     |           |          |              |          |  |       |            |    |  |          |   |         |           |  |   |        | (495   | ) |   |        |  | 
|Conversions of common shares                         |                             |              | 13     |   |         |   |    |            |          |              | (13      | ) |       |            |   |   |          |   |        |            |  |   |       |        |   |   |       |  
|Stock options exercised                              |                             |              | 437    |   |         |   | 4   |            |          |              |         |   |       |            |   |   |          |   | 6,614   |            |  |   |       |        |   |   |       |  
|Income tax benefit from stock options exercised      |                             |              |       |   |         |   |    |            |          |              |         |   |       |            |   |   |          |   | 4,108   |            |  |   |       |        |   |   |       |  
|Compensation earned under restricted stock plan      |                             |              |       |   |         |   |    |            |          |              |         |   |       |            |   |   |          |   |        |            |  |   |       |        |   |   | 292    |  
|Repurchase and retirement of common shares           |                             |              | (712   | ) |         |   | (7  | )          |          |              |         |   |       |            |   |   |          |   | (16,061 | )          |  |   | (5,176 | )      |   |   |       |  
|                                                     |                             |              |        |   |         |   |     |            |          |              |          |   |       |            |    |   |          |   |         |            | 
|Balance  December 28, 2002                          |                             |              | 9,758  |   |         |   | 97  |            |          |              | 2,195    |   |       |            | 22 |   |          |   |        |            |  |   | 92,290 |        |   |   | (20    | )
|Net income                                           |                             |              |       |   |         |   |    |            |          |              |         |   |       |            |   |   |          |   |        |            |  |   | 7,189  |        |   |   |       |  
|Dividends                                            |                             |              |        |   |         |   |     |            |          |              |          |   |       |            |    |   |          |   |         |            |  |   |        |        |   |   |        |  
|                                                     |  Class A ($.36 per share)  |              |        |  |         |   |     |           |          |              |          |  |       |            |    |  |          |   |         |           |  |   |        | (3,460 | ) |   |        |  | 
|                                                     |  Class B ($.31 per share)  |              |        |  |         |   |     |           |          |              |          |  |       |            |    |  |          |   |         |           |  |   |        | (679   | ) |   |        |  | 
|Conversions of common shares                         |                             |              | 11     |   |         |   |    |            |          |              | (11      | ) |       |            |   |   |          |   |        |            |  |   |       |        |   |   |       |  
|Stock options exercised, net                         |                             |              | 68     |   |         |   | 1   |            |          |              |         |   |       |            |   |   |          |   | 867     |            |  |   |       |        |   |   |       |  
|Income tax benefit from stock options exercised      |                             |              |       |   |         |   |    |            |          |              |         |   |       |            |   |   |          |   | 321     |            |  |   |       |        |   |   |       |  
|Additional consideration under restricted stock plan |                             |              |       |   |         |   |    |            |          |              |         |   |       |            |   |   |          |   | 67      |            |  |   |       |        |   |   | (67    | )
|Compensation earned under restricted stock plan      |                             |              |       |   |         |   |    |            |          |              |         |   |       |            |   |   |          |   |        |            |  |   |       |        |   |   | 87     |  
|Repurchase and retirement of common shares           |                             |              | (400   | ) |         |   | (4  | )          |          |              |         |   |       |            |   |   |          |   | (1,255  | )          |  |   | (7,691 | )      |   |   |       |  
|                                                     |                             |              |        |   |         |   |     |            |          |              |          |   |       |            |    |   |          |   |         |            | 
|Balance  January 3, 2004                            |                             |              | 9,437  |   |         |   | 94  |            |          |              | 2,184    |   |       |            | 22 |   |          |   |        |            |  |   | 87,649 |        |   |   |       |  
|Net income                                           |                             |              |       |   |         |   |    |            |          |              |         |   |       |            |   |   |          |   |        |            |  |   | 13,819 |        |   |   |       |  
|Dividends                                            |                             |              |        |   |         |   |     |            |          |              |          |   |       |            |    |   |          |   |         |            |  |   |        |        |   |   |        |  
|                                                     |  Class A ($.44 per share)  |              |        |  |         |   |     |           |          |              |          |  |       |            |    |  |          |   |         |           |  |   |        | (4,212 | ) |   |        |  | 
|                                                     |  Class B ($.38 per share)  |              |        |  |         |   |     |           |          |              |          |  |       |            |    |  |          |   |         |           |  |   |        | (830   | ) |   |        |  | 
|Conversions of common shares                         |                             |              | 1      |   |         |   |    |            |          |              | (1       | ) |       |            |   |   |          |   |        |            |  |   |       |        |   |   |       |  
|Stock options exercised                              |                             |              | 29     |   |         |   |    |            |          |              |         |   |       |            |   |   |          |   | 513     |            |  |   |       |        |   |   |       |  
|Income tax benefit from stock options exercised      |                             |              |       |   |         |   |    |            |          |              |         |   |       |            |   |   |          |   | 50      |            |  |   |       |        |   |   |       |  
|Forfeitures of restricted stock                      |                             |              | (18    | ) |         |   |    |            |          |              |         |   |       |            |   |   |          |   |        |            |  |   |       |        |   |   |       |  
|Award of restricted stock                            |                             |              | 130    |   |         |   | 1   |            |          |              |         |   |       |            |   |   |          |   | 3,163   |            |  |   |       |        |   |   | (3,164 | )
|Compensation earned under restricted stock plan      |                             |              |       |   |         |   |    |            |          |              |         |   |       |            |   |   |          |   |        |            |  |   |       |        |   |   | 629    |  
|                                                     |                             |              |        |   |         |   |     |            |          |              |          |   |       |            |    |   |          |   |         |            | 
|Balance  January 1, 2005                            |                             |              | 9,579  |   |         | $ | 95  |            |          |              | 2,183    |   |       | $          | 22 |   |          | $ | 3,726   |            |  | $ | 96,426 |        |   | $ | (2,535 | )
|                                                     |                             |              |        |   |         |   |     |            |          |              |          |   |       |            |    |   |          |   |         |            | 



38



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OSHKOSH BGOSH, INC. AND SUBSIDIARIES


Consolidated Statements of Cash Flows


(Dollars in thousands)


|                                                     |                                                     |                                                                                       |                                                 |                                                       |            |        |         |              |        |       |         |         |         |        |        |  
|---------------------------------------------------- | --------------------------------------------------- | ------------------------------------------------------------------------------------- | ----------------------------------------------- | ----------------------------------------------------- | ---------- | ------ | ------- | ------------ | ------ | ----- | ------- | ------- | ------- | ------ | ------ | -
|                                                     |                                                     | For the Year Ended                                                                    |                                                
|                                                     |                                                     |                                                                                       |                                                
|                                                     |                                                     | January 1,                                                                            |                                                 |                                                       | January 3, |        |         | December 28, |       
|                                                     |                                                     | 2005                                                                                  |                                                 |                                                       | 2004       |        |         | 2002         |       
|                                                     |                                                     |                                                                                       |                                                 |                                                       |            |        |         |              |       
|Cash flows from operating activities                 |                                                     |                                                                                       |                                                 |                                                       |            |        |         |              |        |       |         |        
|                                                     |                                                     | Net income                                                                            |                                                 | $                                                     | 13,819     |        |         | $            | 7,189  |       |         | $       | 32,045  |       
|                                                     |                                                     | Adjustments to reconcile net income to net cash provided by
    operating activities: |                                                 |                                                       |            |        |         |              |        |       |         |         |         |       
|                                                     |                                                     |                                                                                       | Depreciation                                    |                                                       |            | 6,580  |         |              |        | 6,860 |         |         |         | 6,937  |       
|                                                     |                                                     |                                                                                       | Amortization                                    |                                                       |            | 531    |         |              |        | 598   |         |         |         | 1,013  |       
|                                                     |                                                     |                                                                                       | (Gain) loss on disposal of assets               |                                                       |            | (1,140 | )       |              |        | (158  | )       |         |         | 349    |       
|                                                     |                                                     |                                                                                       | Deferred income taxes                           |                                                       |            | 3,400  |         |              |        | (200  | )       |         |         | 5,400  |       
|                                                     |                                                     |                                                                                       | Compensation earned under restricted stock plan |                                                       |            | 629    |         |              |        | 87    |         |         |         | 292    |       
|                                                     |                                                     |                                                                                       | Income tax benefit from stock option exercises  |                                                       |            | 50     |         |              |        | 321   |         |         |         | 4,108  |       
|                                                     |                                                     |                                                                                       | Benefit plan expense, net of contributions      |                                                       |            | (2,394 | )       |              |        | (446  | )       |         |         | (3,924 | )     
|                                                     |                                                     |                                                                                       | Changes in operating assets and liabilities:    |                                                       |            |        |         |              |        |       |         |         |         |        |       
|                                                     |                                                     |                                                                                       |                                                 | Accounts receivable                                   |            |        | 4,241   |              |        |       | 60      |         |         |        | 8,968  |  
|                                                     |                                                     |                                                                                       |                                                 | Inventories                                           |            |        | 314     |              |        |       | (4,244  | )       |         |        | (1,685 | )
|                                                     |                                                     |                                                                                       |                                                 | Prepaid expenses and other current assets             |            |        | (1,926  | )            |        |       | (6,631  | )       |         |        | (78    | )
|                                                     |                                                     |                                                                                       |                                                 | Accounts payable                                      |            |        | 1,208   |              |        |       | 5,054   |         |         |        | 678    |  
|                                                     |                                                     |                                                                                       |                                                 | Accrued liabilities and other non-current liabilities |            |        | 3,082   |              |        |       | (4,535  | )       |         |        | 284    |  
|                                                     |                                                     |                                                                                       |                                                 |                                                       |            |        |         |              |       
|Net cash provided by operating activities            |                                                     |                                                                                       | 28,394                                          |                                                       |            |        | 3,955   |              |        |       | 54,387  |        
|                                                     | Cash flows from investing activities                |                                                                                       |                                                 |                                                       |            |        |         |              |        |       |         |         |        
|                                                     |                                                     | Additions to property, plant and equipment                                            |                                                 |                                                       | (11,847    | )      |         |              | (4,090 | )     |         |         | (5,722  | )     
|                                                     |                                                     | Proceeds from disposal of assets                                                      |                                                 |                                                       | 2,115      |        |         |              | 510    |       |         |         | 369     |       
|                                                     |                                                     | Sale (purchase) of investments                                                        |                                                 |                                                       | (13,595    | )      |         |              | 11,090 |       |         |         | (16,270 | )     
|                                                     |                                                     | Changes in other assets                                                               |                                                 |                                                       | (386       | )      |         |              | (421   | )     |         |         | (402    | )     
|                                                     |                                                     |                                                                                       |                                                 |                                                       |            |        |         |              |       
|                                                     | Net cash (used in) provided by investing activities |                                                                                       |                                                 | (23,713                                               | )          |        |         | 7,089        |        |       |         | (22,025 | )      
|                                                     | Cash flows from financing activities                |                                                                                       |                                                 |                                                       |            |        |         |              |        |       |         |         |        
|                                                     |                                                     | Payments on long-term debt                                                            |                                                 |                                                       |           |        |         |              |       |       |         |         | (24,000 | )     
|                                                     |                                                     | Dividends paid                                                                        |                                                 |                                                       | (5,042     | )      |         |              | (4,139 | )     |         |         | (3,130  | )     
|                                                     |                                                     | Net proceeds from issuance of common shares                                           |                                                 |                                                       | 513        |        |         |              | 868    |       |         |         | 6,618   |       
|                                                     |                                                     | Repurchase of common shares                                                           |                                                 |                                                       |           |        |         |              | (8,950 | )     |         |         | (21,244 | )     
|                                                     |                                                     |                                                                                       |                                                 |                                                       |            |        |         |              |       
|Net cash used in financing activities                |                                                     |                                                                                       | (4,529                                          | )                                                     |            |        | (12,221 | )            |        |       | (41,756 | )      
|                                                     |                                                     |                                                                                       |                                                 |                                                       |            |        |         |              |       
|Net increase (decrease) in cash and cash equivalents |                                                     |                                                                                       | 152                                             |                                                       |            |        | (1,177  | )            |        |       | (9,394  | )      
|Cash and cash equivalents at beginning of year       |                                                     |                                                                                       | 3,456                                           |                                                       |            |        | 4,633   |              |        |       | 14,027  |        
|                                                     |                                                     |                                                                                       |                                                 |                                                       |            |        |         |              |       
|Cash and cash equivalents at end of year             |                                                     | $                                                                                     | 3,608                                           |                                                       |            | $      | 3,456   |              |        | $     | 4,633   |        
|                                                     |                                                     |                                                                                       |                                                 |                                                       |            |        |         |              |       
|Supplementary disclosures                            |                                                     |                                                                                       |                                                 |                                                       |            |        |         |              |        |       |         |        
|                                                     |                                                     | Cash paid for interest                                                                |                                                 | $                                                     | 144        |        |         | $            | 287    |       |         | $       | 652     |       
|                                                     |                                                     | Cash paid for income taxes                                                            |                                                 | $                                                     | 2,706      |        |         | $            | 6,625  |       |         | $       | 5,434   |       



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OSHKOSH BGOSH, INC. AND SUBSIDIARIES


Notes to Consolidated Financial Statements


(Dollars in thousands, except per share amounts)




|        |                                
|------- | -------------------------------
|NOTE 1. | SIGNIFICANT ACCOUNTING POLICIES



| |         
| | --------
| | Business





| |                            
| | ---------------------------
| | Principles of consolidation





| |                 
| | ----------------
| | Use of estimates





| |                          
| | -------------------------
| | Cash and cash equivalents





| |            
| | -----------
| | Investments





| |                      
| | ---------------------
| | Financial instruments



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OSHKOSH BGOSH, INC. AND SUBSIDIARIES


Notes to Consolidated Financial
Statements  (Continued)




| |                    
| | -------------------
| | Accounts receivable





| |            
| | -----------
| | Inventories





| |                              
| | -----------------------------
| | Property, plant and equipment



|                                  |  |       |          | 
|--------------------------------- |  | ----- | -------- | 
|                                  |  | Years |         
|                                  |  |       |         
|Land improvements                 |  |       | 10 to 15 | 
|Buildings                         |  |       | 10 to 40 | 
|Leasehold improvements            |  |       | 5 to 10  | 
|Machinery, fixtures and equipment |  |       | 3 to 10  | 





| |                        
| | -----------------------
| | Construction Allowances





| |                    
| | -------------------
| | Revenue recognition









| |                      
| | ---------------------
| | Cost of products sold



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OSHKOSH BGOSH, INC. AND SUBSIDIARIES


Notes to Consolidated Financial
Statements  (Continued)




| |                                     
| | ------------------------------------
| | Shipping and handling fees and costs





| |                                          
| | -----------------------------------------
| | Selling, general and administrative costs





| |            
| | -----------
| | Advertising





| |                   
| | ------------------
| | Earnings per share









|                                 |          |      |   |        |      |  |   |       |  |  |   |        | 
|-------------------------------- | -------- | ---- | - | ------ | ---- |  | - | ----- |  |  | - | ------ | 
|                                 |          | 2004 |   |        | 2003 |  |   | 2002  | 
|                                 |          |      |   |        |      |  |   |       | 
|Allocation of Net Income  Basic |          |      |   |        |      |  |   |       |  |  |   |       
|                                 | Common A |      | $ | 11,535 |      |  | $ | 6,007 |  |  | $ | 26,967 | 
|                                 | Common B |      |   | 2,284  |      |  |   | 1,182 |  |  |   | 5,078  | 
|                                 |          |      |   |        |      |  |   |       | 
|                                 | Total    |      | $ | 13,819 |      |  | $ | 7,189 |  |  | $ | 32,045 | 
|                                 |          |      |   |        |      |  |   |       | 



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OSHKOSH BGOSH, INC. AND SUBSIDIARIES


Notes to Consolidated Financial
Statements  (Continued)






|                                   |          |      |   |        |      |  |   |       |  |  |   |        | 
|---------------------------------- | -------- | ---- | - | ------ | ---- |  | - | ----- |  |  | - | ------ | 
|                                   |          | 2004 |   |        | 2003 |  |   | 2002  | 
|                                   |          |      |   |        |      |  |   |       | 
|Allocation of Net Income  Diluted |          |      |   |        |      |  |   |       |  |  |   |       
|                                   | Common A |      | $ | 11,542 |      |  | $ | 6,012 |  |  | $ | 27,064 | 
|                                   | Common B |      |   | 2,277  |      |  |   | 1,177 |  |  |   | 4,981  | 
|                                   |          |      |   |        |      |  |   |       | 
|                                   | Total    |      | $ | 13,819 |      |  | $ | 7,189 |  |  | $ | 32,045 | 
|                                   |          |      |   |        |      |  |   |       | 



|                                                                         |  |                     |        |  |      |  |        |      |  |  |        | 
|------------------------------------------------------------------------ |  | ------------------- | ------ |  | ---- |  | ------ | ---- |  |  | ------ | 
|                                                                         |  | Shares in thousands |       
|                                                                         |  | 2004                |        |  | 2003 |  |        | 2002 | 
|                                                                         |  |                     |        |  |      |  |        |      | 
|Weighted average shares  Basic 
    Class A                            |  |                     | 9,559  |  |      |  | 9,641  |      |  |  | 10,177 | 
|Employee stock options (treasury stock method)                           |  |                     | 55     |  |      |  | 111    |      |  |  | 260    | 
|Weighted average shares  Class B (if-converted
    to Class A)          |  |                     | 2,184  |  |      |  | 2,192  |      |  |  | 2,204  | 
|                                                                         |  |                     |        |  |      |  |        |      | 
|Total Weighted average shares for Class A diluted earnings
    per share |  |                     | 11,798 |  |      |  | 11,944 |      |  |  | 12,641 | 
|                                                                         |  |                     |        |  |      |  |        |      | 





| |                                   
| | ----------------------------------
| | Stock-based compensation  options







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OSHKOSH BGOSH, INC. AND SUBSIDIARIES


Notes to Consolidated Financial
Statements  (Continued)






|                                                                                                                          |                   |      |        |      |      |   |        |      |  |   |        |      | 
|------------------------------------------------------------------------------------------------------------------------- | ----------------- | ---- | ------ | ---- | ---- | - | ------ | ---- |  | - | ------ | ---- | 
|                                                                                                                          |                   | 2004 |        |      | 2003 |   |        | 2002 | 
|                                                                                                                          |                   |      |        |      |      |   |        |      | 
|Net income as reported                                                                                                    |                   | $    | 13,819 |      |      | $ | 7,189  |      |  | $ | 32,045 |     
|Add: Stock based compensation included in net income as
    reported, net of related tax effects                          |                   |      | 402    |      |      |   | 55     |      |  |   | 184    |     
|Deduct: Stock based compensation determined under fair value
    based methods for all awards, net of related tax effects |                   |      | (1,659 | )    |      |   | (1,706 | )    |  |   | (2,256 | )   
|                                                                                                                          |                   |      |        |      |      |   |        |      | 
|Pro forma net income                                                                                                      |                   | $    | 12,562 |      |      | $ | 5,538  |      |  | $ | 29,973 |     
|                                                                                                                          |                   |      |        |      |      |   |        |      | 
|Net income per common share as reported                                                                                   |                   |      |        |      |      |   |        |      |  |   |        |     
|                                                                                                                          | Basic  Class A   |      |        | 1.21 |      |   |        | 0.62 |  |   |        | 2.65 | 
|                                                                                                                          | Basic  Class B   |      |        | 1.05 |      |   |        | 0.54 |  |   |        | 2.30 | 
|                                                                                                                          | Diluted  Class A |      |        | 1.17 |      |   |        | 0.60 |  |   |        | 2.54 | 
|                                                                                                                          | Diluted  Class B |      |        | 1.04 |      |   |        | 0.54 |  |   |        | 2.26 | 
|Pro forma net income per common share                                                                                     |                   |      |        |      |      |   |        |      |  |   |        |     
|                                                                                                                          | Basic  Class A   |      |        | 1.10 |      |   |        | 0.48 |  |   |        | 2.48 | 
|                                                                                                                          | Basic  Class B   |      |        | 0.95 |      |   |        | 0.42 |  |   |        | 2.16 | 
|                                                                                                                          | Diluted  Class A |      |        | 1.06 |      |   |        | 0.47 |  |   |        | 2.39 | 
|                                                                                                                          | Diluted  Class B |      |        | 0.95 |      |   |        | 0.42 |  |   |        | 2.13 | 



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OSHKOSH BGOSH, INC. AND SUBSIDIARIES


Notes to Consolidated Financial
Statements  (Continued)




|                                                           |           |         |       |           |                |   |      |         |           |  |                |      |   |           |      |    |                |  |       |      |   |   |       |    | 
|---------------------------------------------------------- | --------- | ------- | ----- | --------- | -------------- | - | ---- | ------- | --------- |  | -------------- | ---- | - | --------- | ---- | -- | -------------- |  | ----- | ---- | - | - | ----- | -- | 
|                                                           |           | 2004    |       |           | 2003           |   |      | 2002    |          
|                                                           |           |         |       |           |                |   |      |         |          
|                                                           |           |         |       | Weighted- |                |   |      |         | Weighted- |  |                |      |   | Weighted- |     
|                                                           |           | Options |       |           | Average        |   |      | Options |           |  | Average        |      |   | Options   |      |    | Average        | 
|                                                           |           | (000s) |       |           | Exercise Price |   |      | (000s) |           |  | Exercise Price |      |   | (000s)   |      |    | Exercise Price | 
|                                                           |           |         |       |           |                |   |      |         |           |  |                |      |   |           |      |    |                | 
|Outstanding-beginning of year                              |           |         | 1,055 |           |                | $ | 26   |         |           |  | 1,029          |      |   | $         | 26   |    |                |  | 1,199 |      |   | $ | 17    |   
|                                                           | Granted   |         |       | 221       |                |   |      | 22      |           |  |                | 240  |   |           |      | 24 |                |  |       | 345  |   |   |       | 41 | 
|                                                           | Exercised |         |       | (29       | )              |   |      | 18      |           |  |                | (115 | ) |           |      | 18 |                |  |       | (441 | ) |   |       | 15 | 
|                                                           | Forfeited |         |       | (60       | )              |   |      | 28      |           |  |                | (99  | ) |           |      | 31 |                |  |       | (74  | ) |   |       | 23 | 
|                                                           |           |         |       |           |                |   |      |         |           |  |                |      |   |           |      |    |                | 
|Outstanding  end of Year                                  |           |         | 1,187 |           |                | $ | 25   |         |           |  | 1,055          |      |   | $         | 26   |    |                |  | 1,029 |      |   | $ | 26    |   
|                                                           |           |         |       |           |                |   |      |         |           |  |                |      |   |           |      |    |                | 
|Exercisable at end of year                                 |           |         | 732   |           |                | $ | 24   |         |           |  | 540            |      |   | $         | 23   |    |                |  | 419   |      |   | $ | 22    |   
|Weighted-average fair value of options granted during year |           |         |       |           |                | $ | 6.52 |         |           |  |                |      |   | $         | 7.15 |    |                |  |       |      |   | $ | 15.94 |   

|                         |  |                     |       |           |                     |  |     |                |  |   |             |  |  |                |     |  |  |   |    | 
|------------------------ |  | ------------------- | ----- | --------- | ------------------- |  | --- | -------------- |  | - | ----------- |  |  | -------------- | --- |  |  | - | -- | 
|                         |  | Options Outstanding |       |           | Options Exercisable | 
|                         |  |                     |       |           |                     | 
|                         |  |                     |       | Weighted- |                     |  |     |                | 
|                         |  |                     |       | Average   |                     |  |     |                | 
|                         |  | Number              |       |           | Remaining           |  |     | Weighted-      |  |   | Number      |  |  | Weighted-      |    
|                         |  | Outstanding         |       |           | Contract            |  |     | Average        |  |   | Outstanding |  |  | Average        |    
|Range of Exercise Prices |  | (000s)             |       |           | Life                |  |     | Exercise Price |  |   | (000s)     |  |  | Exercise Price |    
|                         |  |                     |       |           |                     |  |     |                |  |   |             |  |  |                |    
|$ 7 to $ 9               |  |                     | 2     |           |                     |  | 2.1 |                |  | $ | 8           |  |  |                | 2   |  |  | $ | 8  | 
|$15 to $17               |  |                     | 140   |           |                     |  | 5.1 |                |  | $ | 16          |  |  |                | 140 |  |  | $ | 16 | 
|$18 to $23               |  |                     | 556   |           |                     |  | 6.5 |                |  | $ | 20          |  |  |                | 336 |  |  | $ | 19 | 
|$24 to $34               |  |                     | 239   |           |                     |  | 7.9 |                |  | $ | 25          |  |  |                | 110 |  |  | $ | 27 | 
|$36 to $42               |  |                     | 250   |           |                     |  | 7.1 |                |  | $ | 41          |  |  |                | 144 |  |  | $ | 41 | 
|                         |  |                     |       |           |                     |  |     |                |  |   |             |  |  |                |    
|                         |  |                     | 1,187 |           |                     |  |     |                |  |   |             |  |  |                | 732 |  |  |   |    | 
|                         |  |                     |       |           |                     |  |     |                |  |   |             |  |  |                |    



| |                                                
| | -----------------------------------------------
| | Stock-based compensation  restricted
    stock





| |            
| | -----------
| | Fiscal year



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OSHKOSH BGOSH, INC. AND SUBSIDIARIES


Notes to Consolidated Financial
Statements  (Continued)




| |                     
| | --------------------
| | Comprehensive income





| |                  
| | -----------------
| | Reclassifications





|        |            
|------- | -----------
|NOTE 2. | INVENTORIES



|                |  |            |        |  |            |   |        | 
|--------------- |  | ---------- | ------ |  | ---------- | - | ------ | 
|                |  | January 1, |        |  | January 3, |  
|                |  | 2005       |        |  | 2004       |  
|                |  |            |        |  |            |  
|Finished goods  |  | $          | 48,285 |  |            | $ | 51,750 | 
|Work in process |  |            | 11,703 |  |            |   | 8,817  | 
|Raw materials   |  |            | 1,056  |  |            |   | 791    | 
|                |  |            |        |  |            |  
|Total           |  | $          | 61,044 |  |            | $ | 61,358 | 
|                |  |            |        |  |            |  





|        |                                          
|------- | -----------------------------------------
|NOTE 3. | PREPAID EXPENSES AND OTHER CURRENT ASSETS



|                                 |  |            |        |  |            |   |       | 
|-------------------------------- |  | ---------- | ------ |  | ---------- | - | ----- | 
|                                 |  | January 1, |        |  | January 3, |  
|                                 |  | 2005       |        |  | 2004       |  
|                                 |  |            |        |  |            |  
|Deposit under insurance contract |  | $          | 4,500  |  |            | $ | 4,500 | 
|Prepaid rent                     |  |            | 2,092  |  |            |   | 1,857 | 
|Other current assets             |  |            | 3,650  |  |            |   | 1,959 | 
|                                 |  |            |        |  |            |  
|                                 |  | $          | 10,242 |  |            | $ | 8,316 | 
|                                 |  |            |        |  |            |  



|        |                              
|------- | -----------------------------
|NOTE 4. | PROPERTY, PLANT AND EQUIPMENT



|                                                |  |            |        |  |            |   |        | 
|----------------------------------------------- |  | ---------- | ------ |  | ---------- | - | ------ | 
|                                                |  | January 1, |        |  | January 3, |  
|                                                |  | 2005       |        |  | 2004       |  
|                                                |  |            |        |  |            |  
|Land and improvements                           |  | $          | 2,579  |  |            | $ | 2,654  | 
|Buildings                                       |  |            | 13,509 |  |            |   | 13,831 | 
|Leasehold improvements                          |  |            | 29,024 |  |            |   | 22,095 | 
|Machinery, fixtures and equipment               |  |            | 36,759 |  |            |   | 34,517 | 
|Construction in progress                        |  |            | 9      |  |            |   | 36     | 
|                                                |  |            |        |  |            |  
|Total                                           |  |            | 81,880 |  |            |   | 73,133 | 
|Less: accumulated depreciation and amortization |  |            | 52,750 |  |            |   | 48,837 | 
|                                                |  |            |        |  |            |  
|Property, plant and equipment, net              |  | $          | 29,130 |  |            | $ | 24,296 | 
|                                                |  |            |        |  |            |  

46



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OSHKOSH BGOSH, INC. AND SUBSIDIARIES


Notes to Consolidated Financial
Statements  (Continued)




|        |                  
|------- | -----------------
|NOTE 5. | CREDIT AGREEMENTS







|        |                    
|------- | -------------------
|NOTE 6. | ACCRUED LIABILITIES



|                      |  |            |        |  |            |   |        | 
|--------------------- |  | ---------- | ------ |  | ---------- | - | ------ | 
|                      |  | January 1, |        |  | January 3, |  
|                      |  | 2005       |        |  | 2004       |  
|                      |  |            |        |  |            |  
|Compensation          |  | $          | 7,462  |  |            | $ | 5,125  | 
|Workers compensation |  |            | 7,050  |  |            |   | 7,800  | 
|Income taxes          |  |            | 7,682  |  |            |   | 6,098  | 
|Other                 |  |            | 11,003 |  |            |   | 13,804 | 
|                      |  |            |        |  |            |  
|Total                 |  | $          | 33,197 |  |            | $ | 32,827 | 
|                      |  |            |        |  |            |  



|        |       
|------- | ------
|NOTE 7. | LEASES





|                             |  |   |        | 
|---------------------------- |  | - | ------ | 
|Fiscal Year                  |  |  
|                             |  |  
|2005                         |  | $ | 19,111 | 
|2006                         |  |   | 13,238 | 
|2007                         |  |   | 9,666  | 
|2008                         |  |   | 7,472  | 
|2009                         |  |   | 5,524  | 
|Thereafter                   |  |   | 15,489 | 
|                             |  |   |       
|Total minimum lease payments |  | $ | 70,500 | 
|                             |  |   |       

47



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OSHKOSH BGOSH, INC. AND SUBSIDIARIES


Notes to Consolidated Financial
Statements  (Continued)




|                   |  |      |        |  |      |   |        |      |  |   |        | 
|------------------ |  | ---- | ------ |  | ---- | - | ------ | ---- |  | - | ------ | 
|                   |  | 2004 |        |  | 2003 |   |        | 2002 | 
|                   |  |      |        |  |      |   |        |      | 
|Minimum rentals    |  | $    | 23,343 |  |      | $ | 21,476 |      |  | $ | 20,346 | 
|Contingent rentals |  |      | 755    |  |      |   | 710    |      |  |   | 1,112  | 
|                   |  |      |        |  |      |   |        |      | 
|Total rent expense |  | $    | 24,098 |  |      | $ | 22,186 |      |  | $ | 21,458 | 
|                   |  |      |        |  |      |   |        |      | 



|        |             
|------- | ------------
|NOTE 8. | INCOME TAXES



|         |                 |      |       |       |      |   |       |       |  |   |        |        | 
|-------- | --------------- | ---- | ----- | ----- | ---- | - | ----- | ----- |  | - | ------ | ------ | 
|         |                 | 2004 |       |       | 2003 |   |       | 2002  | 
|         |                 |      |       |       |      |   |       |       | 
|Current: |                 |      |       |       |      |   |       |       |  |   |        |       
|         | Federal         |      | $     | 3,739 |      |   | $     | 3,659 |  |   | $      | 12,102 | 
|         | State and local |      |       | 637   |      |   |       | 586   |  |   |        | 1,314  | 
|Deferred |                 |      | 3,400 |       |      |   | (200  | )     |  |   | 5,400  |       
|         |                 |      |       |       |      |   |       |       | 
|Total    |                 | $    | 7,776 |       |      | $ | 4,045 |       |  | $ | 18,816 |       
|         |                 |      |       |       |      |   |       |       | 



|                                          |                                |                      |       |        |            |   |        |        |  
|----------------------------------------- | ------------------------------ | -------------------- | ----- | ------ | ---------- | - | ------ | ------ | -
|                                          |                                | January 1,           |       |        | January 3, |  
|                                          |                                | 2005                 |       |        | 2004       |  
|                                          |                                |                      |       |        |            |  
|                                          |                                | Assets (Liabilities) |      
|Current deferred taxes                    |                                |                      |       |        |            |   |        |       
|                                          | Accounts receivable allowances |                      | $     | 1,525  |            |   | $      | 2,012  |  
|                                          | Inventory valuation            |                      |       | 1,964  |            |   |        | 2,452  |  
|                                          | Accrued liabilities            |                      |       | 4,084  |            |   |        | 5,102  |  
|                                          | Other                          |                      |       | 177    |            |   |        | 534    |  
|                                          |                                |                      |       |        |            |  
|Total net current deferred tax assets     |                                | $                    | 7,750 |        |            | $ | 10,100 |       
|                                          |                                |                      |       |        |            |  
|Non-current deferred taxes                |                                |                      |       |        |            |   |        |       
|                                          | Depreciation                   |                      | $     | (1,993 | )          |   | $      | (1,427 | )
|                                          | Deferred employee benefits     |                      |       | 2,466  |            |   |        | 3,185  |  
|                                          | Trademark                      |                      |       | 512    |            |   |        | 478    |  
|                                          | Other                          |                      |       | (35    | )          |   |        | (236   | )
|                                          |                                |                      |       |        |            |  
|Total net non-current deferred tax assets |                                | $                    | 950   |        |            | $ | 2,000  |       
|                                          |                                |                      |       |        |            |  



|                            |                                                                 |      |      |      |      |  |      |      |   |  |      |     |  
|--------------------------- | --------------------------------------------------------------- | ---- | ---- | ---- | ---- |  | ---- | ---- | - |  | ---- | --- | -
|                            |                                                                 | 2004 |      |      | 2003 |  |      | 2002 |  
|                            |                                                                 |      |      |      |      |  |      |      |  
|Federal statutory tax rate  |                                                                 |      | 35.0 | %    |      |  | 34.0 | %    |   |  | 35.0 | %  
|Differences resulting from: |                                                                 |      |      |      |      |  |      |      |   |  |      |    
|                            | State and local income taxes, net of federal income tax benefit |      |      | 2.0  |      |  |      | 3.4  |   |  |      | 2.2 |  
|                            | Other, including federal employment credits                     |      |      | (1.0 | )    |  |      | (1.4 | ) |  |      | (.2 | )
|                            |                                                                 |      |      |      |      |  |      |      |  
|Total                       |                                                                 |      | 36.0 | %    |      |  | 36.0 | %    |   |  | 37.0 | %  
|                            |                                                                 |      |      |      |      |  |      |      |  

48



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##### Table of Contents



OSHKOSH BGOSH, INC. AND SUBSIDIARIES


Notes to Consolidated Financial
Statements  (Continued)




|        |                 
|------- | ----------------
|NOTE 9. | RETIREMENT PLANS





| |                      
| | ---------------------
| | Defined benefit plans



|                                   |  |                   |     |   |                    |  |      |  
|---------------------------------- |  | ----------------- | --- | - | ------------------ |  | ---- | -
|                                   |  | Target Allocation |     |   | Expected Long-Term | 
|                                   |  | Percentage        |     |   | Rate of Return     | 
|                                   |  |                   |     |   |                    | 
|Equity investments                 |  |                   | 50  | % |                    |  | 9-10 | %
|Intermediate term debt investments |  |                   | 40  | % |                    |  | 5-7  | %
|Real estate investments            |  |                   | 10  | % |                    |  | 6-8  | %
|                                   |  |                   |     |   |                    | 
|Total                              |  |                   | 100 | % |                    |  | 8    | %
|                                   |  |                   |     |   |                    | 





|                                   |  |      |     |   |      |  |     |  
|---------------------------------- |  | ---- | --- | - | ---- |  | --- | -
|                                   |  | 2004 |     |   | 2003 | 
|                                   |  |      |     |   |      | 
|Equity investments                 |  |      | 50  | % |      |  | 50  | %
|Intermediate term debt investments |  |      | 39  | % |      |  | 39  | %
|Real estate investments            |  |      | 11  | % |      |  | 11  | %
|                                   |  |      |     |   |      | 
|Total                              |  |      | 100 | % |      |  | 100 | %
|                                   |  |      |     |   |      | 



|                                        |  |      |        |   |      |  |        |  
|--------------------------------------- |  | ---- | ------ | - | ---- |  | ------ | -
|Benefit Obligation                      |  | 2004 |        |   | 2003 | 
|                                        |  |      |        |   |      | 
|Discount rate                           |  |      | 5.75   | % |      |  | 6.0    | %
|Rates of increase in compensation level |  |      | 0- 4.5 | % |      |  | 0- 4.5 | %

|                                            |  |      |        |   |      |  |        |      |  |  |        |  
|------------------------------------------- |  | ---- | ------ | - | ---- |  | ------ | ---- |  |  | ------ | -
|Net Periodic Pension Cost                   |  | 2004 |        |   | 2003 |  |        | 2002 | 
|                                            |  |      |        |   |      |  |        |      | 
|Discount rate                               |  |      | 6.0    | % |      |  | 6.5    | %    |  |  | 7.0    | %
|Expected long-term rate of return on assets |  |      | 8.0    | % |      |  | 8.0    | %    |  |  | 8.0    | %
|Rates of increase in compensation levels    |  |      | 0- 4.5 | % |      |  | 0- 4.5 | %    |  |  | 0- 4.5 | %

49



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OSHKOSH BGOSH, INC. AND SUBSIDIARIES


Notes to Consolidated Financial
Statements  (Continued)




|                                      |  |      |        |   |      |   |        |      |  |   |        |  
|------------------------------------- |  | ---- | ------ | - | ---- | - | ------ | ---- |  | - | ------ | -
|                                      |  | 2004 |        |   | 2003 |   |        | 2002 | 
|                                      |  |      |        |   |      |   |        |      | 
|Service cost                          |  | $    | 2,456  |   |      | $ | 2,184  |      |  | $ | 2,053  |  
|Interest cost                         |  |      | 3,084  |   |      |   | 2,806  |      |  |   | 2,667  |  
|Expected return on plan assets        |  |      | (3,559 | ) |      |   | (2,926 | )    |  |   | (2,892 | )
|Amortization of prior service cost    |  |      | 324    |   |      |   | 323    |      |  |   | 313    |  
|Amortization of transition obligation |  |      |       |   |      |   | (151   | )    |  |   | (159   | )
|Recognized actuarial loss (gain)      |  |      | 246    |   |      |   | 98     |      |  |   | (273   | )
|                                      |  |      |        |   |      |   |        |      | 
|Net periodic pension cost             |  | $    | 2,551  |   |      | $ | 2,334  |      |  | $ | 1,709  |  
|                                      |  |      |        |   |      |   |        |      | 



|                                            |                                                   |      |        |        |      |   |        |        |  
|------------------------------------------- | ------------------------------------------------- | ---- | ------ | ------ | ---- | - | ------ | ------ | -
|                                            |                                                   | 2004 |        |        | 2003 |  
|                                            |                                                   |      |        |        |      |  
|Change in projected benefit obligation      |                                                   |      |        |        |      |   |        |       
|                                            | Projected benefit obligation at beginning of year |      | $      | 51,189 |      |   | $      | 44,727 |  
|                                            | Service cost                                      |      |        | 2,456  |      |   |        | 2,184  |  
|                                            | Interest cost                                     |      |        | 3,084  |      |   |        | 2,806  |  
|                                            | Amendments                                        |      |        | 100    |      |   |        | 82     |  
|                                            | Actuarial loss                                    |      |        | 2,565  |      |   |        | 3,333  |  
|                                            | Benefits paid                                     |      |        | (1,694 | )    |   |        | (1,943 | )
|                                            |                                                   |      |        |        |      |  
|Projected benefit obligation at end of year |                                                   |      | 57,700 |        |      |   | 51,189 |       
|                                            |                                                   |      |        |        |      |  
|Change in plan assets                       |                                                   |      |        |        |      |   |        |       
|                                            | Fair value of plan assets at beginning of year    |      |        | 44,479 |      |   |        | 36,569 |  
|                                            | Actual return on plan assets                      |      |        | 3,748  |      |   |        | 6,326  |  
|                                            | Company contributions                             |      |        | 4,904  |      |   |        | 3,527  |  
|                                            | Benefits paid                                     |      |        | (1,694 | )    |   |        | (1,943 | )
|                                            |                                                   |      |        |        |      |  
|Fair value of plan assets at end of year    |                                                   |      | 51,437 |        |      |   | 44,479 |       
|                                            |                                                   |      |        |        |      |  
|Funded status                               |                                                   |      |        |        |      |   |        |       
|                                            | Funded status of plan                             |      |        | (6,263 | )    |   |        | (6,710 | )
|                                            | Unrecognized net actuarial loss                   |      |        | 5,840  |      |   |        | 3,711  |  
|                                            | Unrecognized prior service cost                   |      |        | 792    |      |   |        | 1,016  |  
|                                            |                                                   |      |        |        |      |  
|Accrued benefit cost                        |                                                   | $    | 369    |        |      | $ | (1,983 | )     
|                                            |                                                   |      |        |        |      |  



|                          |  |      |        |   |      |   |        |  
|------------------------- |  | ---- | ------ | - | ---- | - | ------ | -
|                          |  | 2004 |        |   | 2003 |  
|                          |  |      |        |   |      |  
|Prepaid benefit cost      |  | $    | 3,917  |   |      | $ | 4,009  |  
|Accrued benefit liability |  |      | (3,548 | ) |      |   | (5,992 | )
|                          |  |      |        |   |      |  
|                          |  | $    | 369    |   |      | $ | (1,983 | )
|                          |  |      |        |   |      |  

50



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OSHKOSH BGOSH, INC. AND SUBSIDIARIES


Notes to Consolidated Financial
Statements  (Continued)




|                                |  |             |       |  |             |   |       | 
|------------------------------- |  | ----------- | ----- |  | ----------- | - | ----- | 
|                                |  | ABO> Assets |       |  | ABO> Assets |  
|                                |  | January 1,  |       |  | January 3,  |  
|                                |  | 2005        |       |  | 2004        |  
|                                |  |             |       |  |             |  
|Projected benefit obligations   |  | $           | 3,460 |  |             | $ | 2,672 | 
|Accumulated benefit obligations |  |             | 2,952 |  |             |   | 2,261 | 
|Fair value of plan assets       |  |             |      |  |             |   |      | 





|            |  |   |        | 
|----------- |  | - | ------ | 
|Fiscal Year |  |  
|            |  |  
|2005        |  | $ | 1,400  | 
|2006        |  |   | 1,300  | 
|2007        |  |   | 1,900  | 
|2008        |  |   | 1,700  | 
|2009        |  |   | 2,400  | 
|2010-2014   |  |   | 16,400 | 
|            |  |   |       
|            |  | $ | 25,100 | 
|            |  |   |       







| |                           
| | --------------------------
| | Defined contribution plans







|         |             
|-------- | ------------
|NOTE 10. | COMMON STOCK



51



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OSHKOSH BGOSH, INC. AND SUBSIDIARIES


Notes to Consolidated Financial
Statements  (Continued)












|         |                                   
|-------- | ----------------------------------
|NOTE 11. | BUSINESS AND CREDIT CONCENTRATIONS







|         |           
|-------- | ----------
|NOTE 12. | LITIGATION





|         |                  
|-------- | -----------------
|NOTE 13. | SEGMENT REPORTING





52



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OSHKOSH BGOSH, INC. AND SUBSIDIARIES


Notes to Consolidated Financial
Statements  (Continued)






|                                        |  |           |         |  |        |   |         |             |            |   |           |   |  |       |        |  |  |   |         | 
|--------------------------------------- |  | --------- | ------- |  | ------ | - | ------- | ----------- | ---------- | - | --------- | - |  | ----- | ------ |  |  | - | ------- | 
|                                        |  | Domestic  |         |  |        |   |         |             | All Other/ |   |           |  
|                                        |  | Wholesale |         |  | Retail |   |         | Procurement |            |   | Corporate |   |  | Total |       
|                                        |  |           |         |  |        |   |         |             |            |   |           |   |  |       |       
|January 1, 2005                         |  |           |         |  |        |   |         |             |            |   |           |   |  |       |        |  |  |   |         | 
|Net sales                               |  | $         | 137,776 |  |        | $ | 258,234 |             |            | $ | 92        |   |  | $     | 2,638  |  |  | $ | 398,740 | 
|Income before income taxes              |  |           | 7,222   |  |        |   | 594     |             |            |   | 5,126     |   |  |       | 8,653  |  |  |   | 21,595  | 
|Assets                                  |  |           | 24,616  |  |        |   | 75,955  |             |            |   | 18,323    |   |  |       | 45,496 |  |  |   | 164,390 | 
|Depreciation expense                    |  |           | 1,014   |  |        |   | 4,639   |             |            |   | 398       |   |  |       | 529    |  |  |   | 6,580   | 
|Property, plant and equipment additions |  |           | 347     |  |        |   | 11,397  |             |            |   | 75        |   |  |       | 28     |  |  |   | 11,847  | 
|January 3, 2004                         |  |           |         |  |        |   |         |             |            |   |           |   |  |       |        |  |  |   |         | 
|Net sales                               |  | $         | 165,700 |  |        | $ | 248,694 |             |            | $ | 141       |   |  | $     | 2,737  |  |  | $ | 417,272 | 
|Income (loss) before income taxes       |  |           | 2,108   |  |        |   | 9,618   |             |            |   | (1,562    | ) |  |       | 1,070  |  |  |   | 11,234  | 
|Assets                                  |  |           | 34,844  |  |        |   | 64,309  |             |            |   | 15,265    |   |  |       | 38,107 |  |  |   | 152,525 | 
|Depreciation expense                    |  |           | 1,283   |  |        |   | 4,461   |             |            |   | 487       |   |  |       | 629    |  |  |   | 6,860   | 
|Property, plant and equipment additions |  |           | 494     |  |        |   | 3,358   |             |            |   | 165       |   |  |       | 73     |  |  |   | 4,090   | 
|December 28, 2002                       |  |           |         |  |        |   |         |             |            |   |           |   |  |       |        |  |  |   |         | 
|Net sales                               |  | $         | 182,744 |  |        | $ | 250,539 |             |            | $ | 180       |   |  | $     | 3,526  |  |  | $ | 436,989 | 
|Income before income taxes              |  |           | 16,541  |  |        |   | 22,354  |             |            |   | 11,048    |   |  |       | 918    |  |  |   | 50,861  | 
|Assets                                  |  |           | 44,026  |  |        |   | 49,274  |             |            |   | 15,638    |   |  |       | 47,107 |  |  |   | 156,045 | 
|Depreciation expense                    |  |           | 1,651   |  |        |   | 4,044   |             |            |   | 555       |   |  |       | 687    |  |  |   | 6,937   | 
|Property, plant and equipment additions |  |           | 425     |  |        |   | 5,155   |             |            |   | 108       |   |  |       | 34     |  |  |   | 5,722   | 

53



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OSHKOSH BGOSH, INC. AND SUBSIDIARIES


Notes to Consolidated Financial
Statements  (Continued)




|         |                                            
|-------- | -------------------------------------------
|NOTE 14. | QUARTERLY FINANCIAL INFORMATION (UNAUDITED)

|                                    |                   |                    |        |       |         |   |        |            |   |   |            |      |  |   |         |      | 
|----------------------------------- | ----------------- | ------------------ | ------ | ----- | ------- | - | ------ | ---------- | - | - | ---------- | ---- |  | - | ------- | ---- | 
|                                    |                   | 2004 Quarter Ended |       
|                                    |                   |                    |       
|                                    |                   | April 3,           |        |       | July 3, |   |        | October 2, |   |   | January 1, |     
|                                    |                   | 2004               |        |       | 2004    |   |        | 2004       |   |   | 2005       |     
|                                    |                   |                    |        |       |         |   |        |            |   |   |            |     
|Net sales                           |                   | $                  | 79,507 |       |         | $ | 83,081 |            |   | $ | 115,187    |      |  | $ | 120,965 |     
|Gross profit                        |                   |                    | 30,798 |       |         |   | 31,772 |            |   |   | 45,819     |      |  |   | 50,171  |     
|Net income (loss)                   |                   |                    | (1,196 | )     |         |   | (1,613 | )          |   |   | 8,003      |      |  |   | 8,625   |     
|Net income (loss) per common share: |                   |                    |        |       |         |   |        |            |   |   |            |      |  |   |         |     
|                                    | Basic  Class A   |                    |        | (0.10 | )       |   |        | (0.14      | ) |   |            | 0.70 |  |   |         | 0.75 | 
|                                    | Basic  Class B   |                    |        | (0.10 | )       |   |        | (0.14      | ) |   |            | 0.61 |  |   |         | 0.65 | 
|                                    | Diluted  Class A |                    |        | (0.10 | )       |   |        | (0.14      | ) |   |            | 0.68 |  |   |         | 0.73 | 
|                                    | Diluted  Class B |                    |        | (0.10 | )       |   |        | (0.14      | ) |   |            | 0.60 |  |   |         | 0.65 | 

|                                    |                   |                    |        |      |        |   |        |            |   |   |            |      |  |   |         |      | 
|----------------------------------- | ----------------- | ------------------ | ------ | ---- | ------ | - | ------ | ---------- | - | - | ---------- | ---- |  | - | ------- | ---- | 
|                                    |                   | 2003 Quarter Ended |       
|                                    |                   |                    |       
|                                    |                   | April 5,           |        |      | July 5 |   |        | October 4, |   |   | January 3, |     
|                                    |                   | 2003               |        |      | 2003   |   |        | 2003       |   |   | 2004       |     
|                                    |                   |                    |        |      |        |   |        |            |   |   |            |     
|Net sales                           |                   | $                  | 99,287 |      |        | $ | 84,546 |            |   | $ | 124,097    |      |  | $ | 109,342 |     
|Gross profit                        |                   |                    | 40,704 |      |        |   | 30,700 |            |   |   | 44,656     |      |  |   | 35,093  |     
|Net income (loss)                   |                   |                    | 1,281  |      |        |   | (1,874 | )          |   |   | 6,783      |      |  |   | 999     |     
|Net income (loss) per common share: |                   |                    |        |      |        |   |        |            |   |   |            |      |  |   |         |     
|                                    | Basic  Class A   |                    |        | 0.11 |        |   |        | (0.16      | ) |   |            | 0.59 |  |   |         | 0.09 | 
|                                    | Basic  Class B   |                    |        | 0.10 |        |   |        | (0.16      | ) |   |            | 0.51 |  |   |         | 0.08 | 
|                                    | Diluted  Class A |                    |        | 0.11 |        |   |        | (0.16      | ) |   |            | 0.57 |  |   |         | 0.08 | 
|                                    | Diluted  Class B |                    |        | 0.10 |        |   |        | (0.16      | ) |   |            | 0.51 |  |   |         | 0.08 | 

54



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|        |                                                                                         
|------- | ----------------------------------------------------------------------------------------
|ITEM 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
    ACCOUNTING AND FINANCIAL DISCLOSURE








|         |                        
|-------- | -----------------------
|ITEM 9A. | CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures




Internal Control over Financial Reporting




Changes in Internal Control over Financial Reporting









|         |                  
|-------- | -----------------
|ITEM 9B. | OTHER INFORMATION






PART III







|         |                                                   
|-------- | --------------------------------------------------
|ITEM 10. | DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT








|         |                       
|-------- | ----------------------
|ITEM 11. | EXECUTIVE COMPENSATION








|         |                                                                                                   
|-------- | --------------------------------------------------------------------------------------------------
|ITEM 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
    MANAGEMENT AND RELATED STOCKHOLDER MATTERS



55



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##### Table of Contents








|         |                                               
|-------- | ----------------------------------------------
|ITEM 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS








|         |                                       
|-------- | --------------------------------------
|ITEM 14. | PRINCIPAL ACCOUNTANT FEES AND SERVICES






PART IV







|         |                                           
|-------- | ------------------------------------------
|ITEM 15. | EXHIBITS AND FINANCIAL STATEMENT SCHEDULES





| |                                                                                                                                                                  
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Financial statements for OshKosh BGosh, Inc. listed in the
    Index to Financial Statements and Supplementary Data are filed
    as part of this Annual Report.



| |                                 
| | --------------------------------
| | (2) Financial Statement Schedule



| |                                                                                                                                                                                                                             
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Schedule II  Valuation and Qualifying Accounts                                                                                                                                                                             
|
| | Schedules not included have been omitted because the schedules
    are not applicable, the amounts are immaterial or the required
    information is included in the consolidated financial statements
    or notes thereto.



| |                      
| | ---------------------
| | (3) Index to Exhibits





| |                                    
| | -----------------------------------
| | See Exhibit Index, attached hereto.

56



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##### Table of Contents






SIGNATURES








| |                     
| | --------------------
| | OSHKOSH BGOSH, INC.



| |     |                    
| | --- | -------------------
| | By: | /s/ DOUGLAS W. HYDE

| |                                                                                    
| | -----------------------------------------------------------------------------------
| |                                                                                    
| | Douglas W. Hyde                                                                    
| | Chairman of the Board and Chief Executive Officer (Principal
    Executive Officer)



| |     |                      
| | --- | ---------------------
| | By: | /s/ MICHAEL L. HEIDER

| |                                                                                                                                 
| | --------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                 
| | Michael L. Heider                                                                                                               
| | Vice President Finance, Treasurer and Chief Financial Officer
    (Principal Financial Officer and Principal Accounting Officer)



|          |  |                           |  |                                                                  
|--------- |  | ------------------------- |  | -----------------------------------------------------------------
|Signature |  | Title                    
|          |  |                          
|         
|By:       |  | /s/ DOUGLAS W.
    HYDE   |  | Chairman of the Board, Chief Executive Officer
    and Director  
|         
|By:       |  | /s/ MICHAEL L.
    HEIDER |  | Vice President Finance, Treasurer
    and Chief Financial Officer
|         
|By:       |  | /s/ STEVEN R. DUBACK      |  | Director                                                         
|          |  |                           |  |                                                                  
|         
|By:       |  | /s/ WILLIAM F. WYMAN      |  | Director                                                         
|          |  |                           |  |                                                                  
|         
|By:       |  | /s/ PHOEBE A. WOOD        |  | Director                                                         
|          |  |                           |  |                                                                  
|         
|By:       |  | /s/ SHIRLEY A. DAWE       |  | Director                                                         
|          |  |                           |  |                                                                  
|         
|By:       |  | /s/ TAMARA L. HEIM        |  | Director                                                         
|          |  |                           |  |                                                                  
|         
|By:       |  | /s/ ROBERT C. SIEGEL      |  | Director                                                         
|          |  |                           |  |                                                                  

57



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##### Table of Contents






Exhibit Index


| |     |     |  |                                                                                                                                                                                                                                                          
| | --- | --- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 3   | .1  |  | Restated Certificate of Incorporation of OshKosh BGosh,
    Inc., dated May 9, 2002 (incorporated herein by reference
    to Exhibit 3.1 to the Companys Annual Report on Form
    10-K for the fiscal year ended December 28, 2002).                  
| | 3   | .2  |  | By-laws of OshKosh BGosh, Inc., as amended (incorporated
    herein by reference to Exhibit 3.2 to the Companys
    Form 8-K dated February 15, 2005, filed on
    February 17, 2005).                                                                 
|
| | *10 | .1  |  | OshKosh BGosh, Inc. 401(K) Plan, as amended, effective
    January 1, 2004.                                                                                                                                                                             
|
| | *10 | .2  |  | OshKosh BGosh, Inc. Pension Plan, as amended, effective
    January 1, 2005.                                                                                                                                                                            
|
| | *10 | .3  |  | OshKosh BGosh, Inc. Executive Non-Qualified Profit Sharing
    Plan, as amended. (incorporated herein by reference to
    Exhibit 10.3 to the Companys Annual Report on Form
    10-K for the fiscal year ended January 1, 2004).                      
|
| | *10 | .4  |  | OshKosh BGosh, Inc. Excess Benefit Plan (incorporated
    herein by reference to Exhibit 10.4 to the Companys
    Annual Report on Form 10-K for the fiscal year ended
    December 28, 2002).                                                         
|
| | *10 | .5  |  | OshKosh BGosh, Inc. Executive Deferred Compensation Plan
    (incorporated herein by reference to Exhibit 10.5 to the
    Companys Annual Report on Form 10-K for the fiscal year
    ended December 28, 2002).                                        
|
| | *10 | .6  |  | OshKosh BGosh, Inc. 2004 Supplemental Profit Sharing Plan
    (incorporated herein by reference to Exhibit 10.11 to the
    Companys Form 8-K dated December 30, 2004, filed on
    January 4, 2005).                                                  
|
| | *10 | .7  |  | OshKosh BGosh, Inc. Officers Medical and Dental
    Reimbursement Plan, as amended.                                                                                                                                                                     
|
| | *10 | .8  |  | OshKosh BGosh, Inc. 1994 Incentive Stock Plan, as amended
    (incorporated herein by reference to Exhibit 10.5 to the
    Companys Annual Report on Form 10-K for the fiscal year
    ended December 29, 2001).                                       
|
| | 10  | .9  |  | OshKosh BGosh, Inc. 1995 Outside Directors Stock
    Option Plan (incorporated herein by reference to
    Exhibit 10.8 to the Companys Annual Report on Form
    10-K for the fiscal year ended December 28, 2002).                                   
|
| | *10 | .10 |  | OshKosh BGosh, Inc. 2004 Incentive Stock Plan
    (incorporated herein by reference to Exhibit 99.1 to the
    Companys Registration Statement on Form S-8,
    Registration Number 333-122617, filed on February 7,
    2005).                        
|
| | 10  | .11 |  | Credit agreement between OshKosh BGosh, Inc. and
    U.S. Bank N.A. and participating banks as amended, dated as
    of October 28, 2004 (incorporated herein by reference to
    Exhibit 10.1 to the Companys Form 8-K filed on
    November 1, 2004).
|
| | *10 | .12 |  | Employment Agreement between OshKosh BGosh, Inc. and David
    L. Omachinski (incorporated herein by reference to
    Exhibit 10.10 to the Companys Form 8-K dated
    December 7, 2004, filed on December 10, 2004).                                  
|
| | 21  |     |  | List of subsidiaries                                                                                                                                                                                                                                     
|
| | 23  |     |  | Consent of Deloitte & Touche LLP                                                                                                                                                                                                                         
|
| | 31  | .1  |  | Certification by the Chief Executive Officer                                                                                                                                                                                                             
|
| | 31  | .2  |  | Certification by the Vice President Finance, Treasurer and Chief
    Financial Officer                                                                                                                                                                   
|
| | 32  | .1  |  | Section 906 of the Sarbanes-Oxley Act Certification by the
    Chief Executive Officer                                                                                                                                                                   
|
| | 32  | .2  |  | Section 906 of the Sarbanes-Oxley Act Certification by the
    Vice President Finance, Treasurer and Chief Financial Officer                                                                                                                             






|  |                                                                                                               
|- | --------------------------------------------------------------------------------------------------------------
|* | Represents a plan that covers compensation, benefits and/or
    related arrangements for executive management.

58



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##### Table of Contents



OSHKOSH BGOSH, INC. AND SUBSIDIARIES


Schedule II


Valuation and Qualifying Accounts


(Dollars in thousands)


|                                   |                   |            |   |       |            |  |   |            |   |  |            |        |  |  |   |       | 
|---------------------------------- | ----------------- | ---------- | - | ----- | ---------- |  | - | ---------- | - |  | ---------- | ------ |  |  | - | ----- | 
|                                   |                   | Balance at |   |       | Charged to |  |   | Deductions |   |  | Balance at |       
|                                   |                   | Beginning  |   |       | Costs and  |  |   | Net of     |   |  | End of     |       
|                                   |                   | of Period  |   |       | Expenses   |  |   | Recoveries |   |  | Period     |       
|                                   |                   |            |   |       |            |  |   |            |   |  |            |       
|Allowance for Doubtful Accounts    |                   |            |   |       |            |  |   |            |   |  |            |        |  |  |   |      
|                                   | January 1, 2005   |            | $ | 200   |            |  | $ | (79        | ) |  | $          | 21     |  |  | $ | 100   | 
|                                   | January 3, 2004   |            |   | 300   |            |  |   | (6         | ) |  |            | 94     |  |  |   | 200   | 
|                                   | December 28, 2002 |            |   | 500   |            |  |   | (96        | ) |  |            | 104    |  |  |   | 300   | 
|Allowance for Promotional Programs |                   |            |   |       |            |  |   |            |   |  |            |        |  |  |   |      
|                                   | January 1, 2005   |            | $ | 5,402 |            |  | $ | 28,937     |   |  | $          | 30,041 |  |  | $ | 4,298 | 
|                                   | January 3, 2004   |            |   | 4,937 |            |  |   | 48,211     |   |  |            | 47,746 |  |  |   | 5,402 | 
|                                   | December 28, 2002 |            |   | 6,575 |            |  |   | 35,629     |   |  |            | 37,267 |  |  |   | 4,937 | 

59