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REVENUE RECOGNITION
 6 Months Ended
Jul. 02, 2022
Revenue from Contract with Customer [Abstract]  
REVENUE RECOGNITION REVENUE RECOGNITION
The Company’s revenues are earned from contracts or arrangements with retail and wholesale customers and licensees. Contracts include written agreements, as well as arrangements that are implied by customary practices or law.
Disaggregation of Revenue
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 2022 and 2021 were as follows:
Fiscal quarter ended July 2, 2022
(dollars in thousands)U.S. RetailU.S. WholesaleInternationalTotal
Wholesale channel$— $224,016 $37,019 $261,035 
Direct-to-consumer379,097 — 60,563 439,660 
$379,097 $224,016 $97,582 $700,695 
Royalty income, net$1,317 $2,885 $1,400 $5,602 
Two fiscal quarters ended July 2, 2022
(dollars in thousands)U.S. RetailU.S. WholesaleInternationalTotal
Wholesale channel$— $531,317 $87,452 $618,769 
Direct-to-consumer745,455 — 117,756 863,211 
$745,455 $531,317 $205,208 $1,481,980 
Royalty income, net$4,558 $6,315 $2,203 $13,076 
Fiscal quarter ended July 3, 2021
(dollars in thousands)U.S. RetailU.S. WholesaleInternationalTotal
Wholesale channel$— $231,630 $33,610 $265,240 
Direct-to-consumer423,627 — 57,533 481,160 
$423,627 $231,630 $91,143 $746,400 
Royalty income, net$2,360 $2,876 $1,409 $6,645 
Two fiscal quarters ended July 3, 2021
(dollars in thousands)U.S. RetailU.S. WholesaleInternationalTotal
Wholesale channel$— $515,007 $76,402 $591,409 
Direct-to-consumer830,694 — 111,658 942,352 
$830,694 $515,007 $188,060 $1,533,761 
Royalty income, net$5,430 $6,651 $2,027 $14,108 
Accounts Receivable from Customers and Licensees
The components of Accounts receivable, net, were as follows:
(dollars in thousands)July 2, 2022January 1, 2022July 3, 2021
Trade receivables from wholesale customers, net$182,253 $233,928 $164,591 
Royalties receivable5,203 5,769 5,991 
Tenant allowances and other receivables10,671 10,352 9,478 
Total gross receivables$198,127 $250,049 $180,060 
Less: Wholesale accounts receivable reserves(*)
(14,207)(18,695)(16,103)
Accounts receivable, net$183,920 $231,354 $163,957 
(*)Includes allowance for credit losses of $5.8 million, $7.3 million, and $7.1 million for the periods ended July 2, 2022, January 1, 2022, and July 3, 2021, respectively.
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 2, 2022January 1, 2022July 3, 2021
Contract liabilities - current:
Unredeemed gift cards$21,251 $21,619 $18,049 
Unredeemed customer loyalty rewards4,456 5,659 4,829 
Carter’s credit card - upfront bonus(1)
714 714 714 
Total contract liabilities - current(2)
$26,421 $27,992 $23,592 
Contract liabilities - non-current(3)
$1,786 $2,143 $2,500 
Total contract liabilities$28,207 $30,135 $26,092 
(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 sheet.
(3)This amount reflects the non-current portion of the Carter’s credit card upfront bonus.