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REVENUE RECOGNITION (Tables)

6 Months Ended

Jul. 03, 2021

Revenue from Contract with Customer [Abstract]

The Company sells its products directly to consumers (“direct-to-consumer”) and to other retail companies and partners that subsequently sell the products directly to their own retail customers. The Company also earns royalties from certain of its licensees. Disaggregated revenues from these sources for the second quarter and two quarters ended fiscal 2021 and 2020 were as follows:


	Fiscal quarter ended July 3, 2021
(dollars in thousands)	U.S. Retail		U.S. Wholesale		International		Total
Wholesale channel	$	—	$	231,630	$	33,610	$	265,240
Direct-to-consumer	423,627		—		57,533		481,160

	$	423,627	$	231,630	$	91,143	$	746,400

Royalty income	$	2,360	$	2,876	$	1,409	$	6,645


	Two fiscal quarters ended July 3, 2021
(dollars in thousands)	U.S. Retail		U.S. Wholesale		International		Total
Wholesale channel	$	—	$	515,007	$	76,402	$	591,409
Direct-to-consumer	830,694		—		111,658		942,352

	$	830,694	$	515,007	$	188,060	$	1,533,761

Royalty income	$	5,430	$	6,651	$	2,027	$	14,108


	Fiscal quarter ended June 27, 2020
(dollars in thousands)	U.S. Retail		U.S. Wholesale		International		Total
Wholesale channel	$	—	$	151,744	$	15,541	$	167,285
Direct-to-consumer	316,016		—		31,584		347,600

	$	316,016	$	151,744	$	47,125	$	514,885

Royalty income	$	1,252	$	1,508	$	828	$	3,588


	Two fiscal quarters ended June 27, 2020
(dollars in thousands)	U.S. Retail		U.S. Wholesale		International		Total
Wholesale channel	$	—	$	403,874	$	54,272	$	458,146
Direct-to-consumer	636,733		—		74,478		711,211

	$	636,733	$	403,874	$	128,750	$	1,169,357

Royalty income	$	3,746	$	5,590	$	1,590	$	10,926

Accounts Receivable from Customers and Licensees

The components of Accounts receivable, net, were as follows:


(dollars in thousands)	July 3, 2021		January 2, 2021		June 27, 2020
Trade receivables from wholesale customers, net	$	164,591	$	180,830	$	159,043
Royalties receivable	5,991		5,733		5,371
Tenant allowances and other receivables	9,478		12,315		15,188
Total receivables	$	180,060	$	198,878	$	179,602
Less: Wholesale accounts receivable reserves(*)	(16,103)		(12,366)		(14,024)
Accounts receivable, net	$	163,957	$	186,512	$	165,578

(*)Includes allowance for credit losses of $7.1 million $5.9 million, and $9.2 million for the periods ended July 3, 2021, January 2, 2021, and June 27, 2020, respectively.

Contract with Customer, Asset and Liability

Contract Assets and Liabilities

The Company’s contract assets are not material.

Contract Liabilities

The Company recognizes a contract liability when it has received consideration from a customer and has a future obligation to transfer goods to the customer. Total contract liabilities consisted of the following amounts:


(dollars in thousands)	July 3, 2021		January 2, 2021		June 27, 2020
Contract liabilities - current:
Unredeemed gift cards	$	18,049	$	18,300	$	15,667
Unredeemed customer loyalty rewards	4,829		5,241		4,664
Carter’s credit card - upfront bonus(1)	714		714		714
Total contract liabilities - current(2)	$	23,592	$	24,255	$	21,045

Contract liabilities - non-current(3)	$	2,500	$	2,857	$	3,214
Total contract liabilities	$	26,092	$	27,112	$	24,259

(1)The Company received an upfront signing bonus from a third-party financial institution, which will be recognized as revenue on a straight-line basis over the term of the agreement. This amount reflects the current portion of this bonus to be recognized as revenue over the next twelve months.

(2)Included with Other current liabilities on the Company’s consolidated balance sheets.

(3)This amount reflects the non-current portion of the Carter’s credit card upfront bonus.