XML 21 R12.htm IDEA: XBRL DOCUMENT
v3.23.3

REVENUE RECOGNITION | 9 Months Ended
--- | ---
Sep. 30, 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 September 30, 2023
(dollars in thousands) |  | U.S. Retail |  | U.S. Wholesale |  | International |  | Total
Wholesale channel |  | $ | — |  |  | $ | 300,338 |  |  | $ | 45,842 |  |  | $ | 346,180 |
Direct-to-consumer |  | 374,796 |  |  | — |  |  | 70,675 |  |  | 445,471 |
|  | $ | 374,796 |  |  | $ | 300,338 |  |  | $ | 116,517 |  |  | $ | 791,651 |
Royalty income, net |  | $ | 2,236 |  |  | $ | 3,147 |  |  | $ | 330 |  |  | $ | 5,713 |
|  | Three fiscal quarters ended September 30, 2023
(dollars in thousands) |  | U.S. Retail |  | U.S. Wholesale |  | International |  | Total
Wholesale channel |  | $ | — |  |  | $ | 767,194 |  |  | $ | 117,547 |  |  | $ | 884,741 |
Direct-to-consumer |  | 1,021,983 |  |  | — |  |  | 181,006 |  |  | 1,202,989 |
|  | $ | 1,021,983 |  |  | $ | 767,194 |  |  | $ | 298,553 |  |  | $ | 2,087,730 |
Royalty income, net |  | $ | 5,746 |  |  | $ | 8,694 |  |  | $ | 2,133 |  |  | $ | 16,573 |
|  | Fiscal quarter ended October 1, 2022
(dollars in thousands) |  | U.S. Retail |  | U.S. Wholesale |  | International |  | Total
Wholesale channel |  | $ | — |  |  | $ | 288,454 |  |  | $ | 50,489 |  |  | $ | 338,943 |
Direct-to-consumer |  | 408,209 |  |  | — |  |  | 71,472 |  |  | 479,681 |
|  | $ | 408,209 |  |  | $ | 288,454 |  |  | $ | 121,961 |  |  | $ | 818,624 |
Royalty income, net |  | $ | 3,073 |  |  | $ | 3,349 |  |  | $ | 851 |  |  | $ | 7,273 |
|  | Three fiscal quarters ended October 1, 2022
(dollars in thousands) |  | U.S. Retail |  | U.S. Wholesale |  | International |  | Total
Wholesale channel |  | $ | — |  |  | $ | 819,772 |  |  | $ | 137,940 |  |  | $ | 957,712 |
Direct-to-consumer |  | 1,153,664 |  |  | — |  |  | 189,227 |  |  | 1,342,891 |
|  | $ | 1,153,664 |  |  | $ | 819,772 |  |  | $ | 327,167 |  |  | $ | 2,300,603 |
Royalty income, net |  | $ | 7,631 |  |  | $ | 9,664 |  |  | $ | 3,054 |  |  | $ | 20,349 |
Accounts Receivable from Customers and Licensees The components of Accounts receivable, net, were as follows:
(dollars in thousands) |  | September 30, 2023 |  | December 31, 2022 |  | October 1, 2022
Trade receivables from wholesale customers, net |  | $ | 239,493 |  |  | $ | 195,078 |  |  | $ | 260,635 |
Royalties receivable |  | 5,825 |  |  | 5,386 |  |  | 6,823 |
Other receivables(1) |  | 10,898 |  |  | 14,571 |  |  | 13,673 |
Total gross receivables |  | $ | 256,216 |  |  | $ | 215,035 |  |  | $ | 281,131 |
Less: Wholesale accounts receivable reserves(2)(3) |  | (15,709) |  |  | (16,448) |  |  | (15,538) |
Accounts receivable, net |  | $ | 240,507 |  |  | $ | 198,587 |  |  | $ | 265,593 |
(1)Includes tax, payroll, gift card and other receivables. (2)Includes allowance for chargebacks of $9.0 million, $9.3 million, and $9.2 million for the periods ended September 30, 2023, December 31, 2022, and October 1, 2022, respectively. (3)Includes allowance for credit losses of $6.7 million, $7.2 million, and $6.3 million for the periods ended September 30, 2023, December 31, 2022, and October 1, 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) | September 30, 2023 |  | December 31, 2022 |  | October 1, 2022
Contract liabilities - current: |  |  |  |  |
Unredeemed gift cards | $ | 23,983 |  |  | $ | 23,303 |  |  | $ | 21,217 |
Unredeemed customer loyalty rewards | 4,020 |  |  | 5,276 |  |  | 7,527 |
Carter’s credit card - upfront bonus(1) | 714 |  |  | 714 |  |  | 714 |
Total contract liabilities - current(2) | $ | 28,717 |  |  | $ | 29,293 |  |  | $ | 29,458 |
Contract liabilities - non-current(3) | $ | 893 |  |  | $ | 1,429 |  |  | $ | 1,607 |
Total contract liabilities | $ | 29,610 |  |  | $ | 30,722 |  |  | $ | 31,065 |
(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.

X
- References No definition available. + Details
Name: | us-gaap_RevenueFromContractWithCustomerAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-9 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-15 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-13 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org//606/tableOfContent + Details
Name: | us-gaap_RevenueFromContractWithCustomerTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration