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REVENUE RECOGNITION
 3 Months Ended
Apr. 01, 2023
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 (“wholesale channel”). The Company also earns royalties from certain of its licensees. Disaggregated revenues from these sources for the fiscal periods indicated were as follows:
Fiscal quarter ended April 1, 2023
(dollars in thousands)U.S. RetailU.S. WholesaleInternationalTotal
Wholesale channel$— $279,990 $38,496 $318,486 
Direct-to-consumer323,721 — 53,673 377,394 
$323,721 $279,990 $92,169 $695,880 
Royalty income, net$2,078 $3,558 $883 $6,519 
Fiscal quarter ended April 2, 2022
(dollars in thousands)U.S. RetailU.S. WholesaleInternationalTotal
Wholesale channel$— $307,301 $50,432 $357,733 
Direct-to-consumer366,358 — 57,193 423,551 
$366,358 $307,301 $107,625 $781,284 
Royalty income, net$3,240 $3,430 $804 $7,474 
Accounts Receivable from Customers and Licensees
The components of Accounts receivable, net, were as follows:
(dollars in thousands)April 1, 2023December 31, 2022April 2, 2022
Trade receivables from wholesale customers, net
$222,069 $195,078 $266,970 
Royalties receivable6,396 5,386 6,923 
Other receivables(1)
13,351 14,571 9,282 
Total receivables$241,816 $215,035 $283,175 
Less: Wholesale accounts receivable reserves(2)(3)
(17,877)(16,448)(17,481)
Accounts receivable, net$223,939 $198,587 $265,694 
(1)Includes tenant allowances, tax, payroll, gift card and other receivables.
(2)Includes allowance for chargebacks of $10.5 million, $9.3 million, and $11.7 million for the periods ended April 1, 2023, December 31, 2022, and April 2, 2022, respectively.
(3)Includes allowance for credit losses of $7.4 million, $7.2 million, and $5.8 million for the periods ended April 1, 2023, December 31, 2022, and April 2, 2022, 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)April 1, 2023December 31, 2022April 2, 2022
Contract liabilities - current:
Unredeemed gift cards$22,601 $23,303 $21,026 
Unredeemed customer loyalty rewards5,070 5,276 5,804 
Carter’s credit card - upfront bonus(1)
714 714 714 
Total contract liabilities - current(2)
$28,385 $29,293 $27,544 
Contract liabilities - non-current(3)
$1,250 $1,429 $1,964 
Total contract liabilities$29,635 $30,722 $29,508 
(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 and is included within Other long-term liabilities on the Company’s consolidated balance sheets.