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REVENUE RECOGNITION | 12 Months Ended
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Dec. 28, 2024
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. The Company also earns royalties from certain of its licensees. Disaggregated revenues from these sources for the fiscal years presented were as follows:
|  | Fiscal year ended December 28, 2024
(dollars in thousands) |  | U.S. Retail |  | U.S. Wholesale |  | International |  | Total
Direct-to-consumer |  | $ | 1,417,108 |  |  | $ | — |  |  | $ | 268,409 |  |  | $ | 1,685,517 |
Wholesale channel |  | — |  |  | 1,021,396 |  |  | 137,189 |  |  | 1,158,585 |
|  | $ | 1,417,108 |  |  | $ | 1,021,396 |  |  | $ | 405,598 |  |  | $ | 2,844,102 |
Royalty income, net |  | $ | 5,365 |  |  | $ | 11,072 |  |  | $ | 2,814 |  |  | $ | 19,251 |
|  | Fiscal year ended December 30, 2023
(dollars in thousands) |  | U.S. Retail |  | U.S. Wholesale |  | International |  | Total
Direct-to-consumer |  | $ | 1,501,780 |  |  | $ | — |  |  | $ | 268,596 |  |  | $ | 1,770,376 |
Wholesale channel |  | — |  |  | 1,014,584 |  |  | 160,634 |  |  | 1,175,218 |
|  | $ | 1,501,780 |  |  | $ | 1,014,584 |  |  | $ | 429,230 |  |  | $ | 2,945,594 |
Royalty income, net |  | $ | 6,549 |  |  | $ | 11,660 |  |  | $ | 3,201 |  |  | $ | 21,410 |
|  | Fiscal year ended December 31, 2022
(dollars in thousands) |  | U.S. Retail |  | U.S. Wholesale |  | International |  | Total
Direct-to-consumer |  | $ | 1,680,159 |  |  | $ | — |  |  | $ | 279,903 |  |  | $ | 1,960,062 |
Wholesale channel |  | — |  |  | 1,080,471 |  |  | 172,200 |  |  | 1,252,671 |
|  | $ | 1,680,159 |  |  | $ | 1,080,471 |  |  | $ | 452,103 |  |  | $ | 3,212,733 |
Royalty income, net |  | $ | 8,815 |  |  | $ | 12,915 |  |  | $ | 4,090 |  |  | $ | 25,820 |
Accounts Receivable from Customers and Licensees The components of Accounts receivable, net, were as follows:
(dollars in thousands) |  | December 28, 2024 |  | December 30, 2023
Trade receivables from wholesale customers, net |  | $ | 187,715 |  |  | $ | 172,106 |
Royalties receivable, net |  | 3,728 |  |  | 4,753 |
Other receivables(1) |  | 13,444 |  |  | 20,032 |
Total receivables |  | $ | 204,887 |  |  | $ | 196,891 |
Less: Wholesale accounts receivable reserves(2)(3) |  | (10,053) |  |  | (13,117) |
Accounts receivable, net |  | $ | 194,834 |  |  | $ | 183,774 |
(1)Includes 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 $4.4 million and $8.4 million for the periods ended December 28, 2024 and December 30, 2023, respectively. (3)Includes allowance for credit losses of $5.7 million and $4.8 million for the periods ended December 28, 2024 and December 30, 2023, respectively. Information regarding Wholesale accounts receivable reserves is as follows:
(dollars in thousands) | Wholesale accounts receivable reserves
Balance at January 1, 2022 | $ | 18,695 |
Additional provisions | 9,280 |
Charges to reserve | (11,527) |
Balance at December 31, 2022 | $ | 16,448 |
Additional provisions | 5,220 |
Charges to reserve | (8,551) |
Balance at December 30, 2023 | $ | 13,117 |
Additional provisions | 2,836 |
Charges to reserve | (5,900) |
Balance at December 28, 2024 | $ | 10,053 |
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) | December 28, 2024 |  | December 30, 2023
Contract liabilities - current: |  |  |
Unredeemed gift cards | $ | 25,043 |  |  | $ | 25,162 |
Unredeemed customer loyalty rewards | 2,552 |  |  | 3,355 |
Carter’s credit card - upfront bonus(1) | 714 |  |  | 714 |
Total contract liabilities - current(2) | $ | 28,309 |  |  | $ | 29,231 |
Contract liabilities - non-current(3) | $ | — |  |  | $ | 714 |
Total contract liabilities | $ | 28,309 |  |  | $ | 29,945 |
(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 within Other current liabilities on the Company’s consolidated balance sheet. (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 sheet. Composition of Contract Liabilities Unredeemed gift cards - the Company is obligated to transfer goods in the future to customers who have purchased gift cards. Periodic changes in the gift card contract liability result from the purchase of gift cards, the redemption of gift cards by customers and the recognition of estimated breakage revenue for those gift card balances that are not expected to be redeemed. Although gift cards do not have an expiration date, the Company classifies all outstanding gift card balances as current liabilities, as they are redeemable on demand by the valid card holder. The majority of the Company’s gift cards are redeemed within one year of issuance. During fiscal 2024 and fiscal 2023, the Company recognized revenue of $10.5 million and $9.4 million related to the gift card liability balance that existed at December 30, 2023 and December 31, 2022, respectively. Unredeemed loyalty rewards - points and reward certificates earned by customers under the Company’s loyalty program represent obligations of the Company to transfer goods to the customer upon redemption. Periodic changes in the loyalty program contract liability result from new rewards earned, reward certificate redemptions and expirations. The earning and redemption cycles for our loyalty program are under one year in duration. Carter’s credit card - upfront bonus - the Company received an upfront bonus from a third-party financial institution, which will be recognized as revenue on a straight-line basis over the term of the agreement.

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- 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
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