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REVENUE RECOGNITION (Tables)

6 Months Ended

Jul. 01, 2023

Revenue from Contract with Customer [Abstract]

Disaggregated revenues from these sources for the fiscal periods indicated were as follows:


	Fiscal quarter ended July 1, 2023
(dollars in thousands)	U.S. Retail		U.S. Wholesale		International		Total
Wholesale channel	$	—	$	186,867	$	33,209	$	220,076
Direct-to-consumer	323,466		—		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. Retail		U.S. Wholesale		International		Total
Wholesale channel	$	—	$	466,856	$	71,705	$	538,561
Direct-to-consumer	647,187		—		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. Retail		U.S. Wholesale		International		Total
Wholesale channel	$	—	$	224,016	$	37,019	$	261,035
Direct-to-consumer	379,097		—		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. Retail		U.S. Wholesale		International		Total
Wholesale channel	$	—	$	531,317	$	87,452	$	618,769
Direct-to-consumer	745,455		—		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, 2023		December 31, 2022		July 2, 2022
Trade receivables from wholesale customers, net	$	128,421	$	195,078	$	182,253
Royalties receivable	4,369		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 with Customer, Asset and Liability

Total contract liabilities consisted of the following amounts:


(dollars in thousands)	July 1, 2023		December 31, 2022		July 2, 2022
Contract liabilities - current:
Unredeemed gift cards	$	23,987	$	23,303	$	21,251
Unredeemed customer loyalty rewards	3,575		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.