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REVENUE RECOGNITION
 3 Months Ended
Mar. 30, 2024
Revenue from Contract with Customer [Abstract]  
REVENUE RECOGNITION REVENUE RECOGNITION
The Company’s revenues are earned from contracts or arrangements with retail consumers, 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 presented were as follows:
Fiscal quarter ended March 30, 2024
(dollars in thousands)U.S. RetailU.S. WholesaleInternationalTotal
Direct-to-consumer$307,642 $— $55,061 $362,703 
Wholesale channel— 264,131 34,658 298,789 
$307,642 $264,131 $89,719 $661,492 
Royalty income, net$1,485 $3,359 $372 $5,216 
Fiscal quarter ended April 1, 2023
(dollars in thousands)U.S. RetailU.S. WholesaleInternationalTotal
Direct-to-consumer$323,721 $— $53,673 $377,394 
Wholesale channel— 279,990 38,496 318,486 
$323,721 $279,990 $92,169 $695,880 
Royalty income, net$2,078 $3,558 $883 $6,519 
Accounts Receivable from Customers and Licensees
The components of Accounts receivable, net, were as follows:
(dollars in thousands)March 30, 2024December 30, 2023April 1, 2023
Trade receivables from wholesale customers, net
$219,842 $172,106 $222,069 
Royalties receivable, net5,366 4,753 6,396 
Other receivables(1)
11,266 20,032 13,351 
Total receivables$236,474 $196,891 $241,816 
Less: Wholesale accounts receivable reserves(2)(3)
(12,399)(13,117)(17,877)
Accounts receivable, net$224,075 $183,774 $223,939 
(1)Includes tenant allowances, tax, payroll, gift card and other receivables. The balance for the fiscal period ended December 30, 2023 includes a receivable for a $6.9 million court approved settlement in December 2023 related to payment card interchange fees. This payment was received in the first quarter of fiscal 2024.
(2)Includes allowance for chargebacks of $7.2 million, $8.4 million, and $10.5 million for the periods ended March 30, 2024, December 30, 2023, and April 1, 2023, respectively.
(3)Includes allowance for credit losses of $5.2 million, $4.8 million, and $7.4 million for the periods ended March 30, 2024, December 30, 2023, and April 1, 2023, 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)March 30, 2024December 30, 2023April 1, 2023
Contract liabilities - current:
Unredeemed gift cards(1)
$24,405 $25,162 $22,601 
Unredeemed customer loyalty rewards2,994 3,355 5,070 
Carter’s credit card - upfront bonus(2)
714 714 714 
Total contract liabilities - current(3)
$28,113 $29,231 $28,385 
Contract liabilities - non-current(4)
$536 $714 $1,250 
Total contract liabilities$28,649 $29,945 $29,635 
(1)During the first quarters of fiscal 2024 and fiscal 2023, the Company recognized revenue of $3.7 million and $3.4 million related to the gift card liability balance that existed at December 30, 2023 and December 31, 2022, respectively.
(2)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.
(3)Included with Other current liabilities on the Company’s condensed consolidated balance sheets.
(4)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.