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REVENUE RECOGNITION
 6 Months Ended
Jul. 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 July 1, 2023
(dollars in thousands)U.S. RetailU.S. WholesaleInternationalTotal
Wholesale channel$— $186,867 $33,209 $220,076 
Direct-to-consumer323,466 — 56,657 380,123 
$323,466 $186,867 $89,866 $600,199 
Royalty income, net$1,432 $1,988 $921 $4,341 
Two fiscal quarters ended July 1, 2023
(dollars in thousands)U.S. RetailU.S. WholesaleInternationalTotal
Wholesale channel$— $466,856 $71,705 $538,561 
Direct-to-consumer647,187 — 110,331 757,518 
$647,187 $466,856 $182,036 $1,296,079 
Royalty income, net$3,510 $5,546 $1,804 $10,860 
Fiscal quarter ended July 2, 2022
(dollars in thousands)U.S. RetailU.S. WholesaleInternationalTotal
Wholesale channel$— $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 
Accounts Receivable from Customers and Licensees
The components of Accounts receivable, net, were as follows:
(dollars in thousands)July 1, 2023December 31, 2022July 2, 2022
Trade receivables from wholesale customers, net$128,421 $195,078 $182,253 
Royalties receivable4,369 5,386 5,203 
Other receivables(1)
11,965 14,571 10,671 
Total gross receivables$144,755 $215,035 $198,127 
Less: Wholesale accounts receivable reserves(2)(3)
(12,076)(16,448)(14,207)
Accounts receivable, net$132,679 $198,587 $183,920 
(1)Includes tax, payroll, gift card and other receivables.
(2)Includes allowance for chargebacks of $8.2 million,$9.3 million, and $8.4 million for the periods ended July 1, 2023, December 31, 2022, and July 2, 2022, respectively.
(3)Includes allowance for credit losses of $3.8 million, $7.2 million, and $5.8 million for the periods ended July 1, 2023, December 31, 2022, and July 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)July 1, 2023December 31, 2022July 2, 2022
Contract liabilities - current:
Unredeemed gift cards$23,987 $23,303 $21,251 
Unredeemed customer loyalty rewards3,575 5,276 4,456 
Carter’s credit card - upfront bonus(1)
714 714 714 
Total contract liabilities - current(2)
$28,276 $29,293 $26,421 
Contract liabilities - non-current(3)
$1,071 $1,429 $1,786 
Total contract liabilities$29,347 $30,722 $28,207 
(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 condensed 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 condensed consolidated balance sheets.