REVENUE RECOGNITION (Tables)

12 Months Ended

Dec. 30, 2023

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

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 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

	Fiscal year ended January 1, 2022
(dollars in thousands)	U.S. Retail		U.S. Wholesale		International		Total
Direct-to-consumer	$	1,899,262	$	—	$	289,060	$	2,188,322
Wholesale channel	—		1,126,415		171,703		1,298,118
	$	1,899,262	$	1,126,415	$	460,763	$	3,486,440
Royalty income, net	$	8,541	$	15,808	$	4,332	$	28,681

Accounts Receivable from Customers and Licensees

Accounts Receivable from Customers and Licensees

The components of Accounts receivable, net, were as follows:

(dollars in thousands)	December 30, 2023		December 31, 2022
Trade receivables from wholesale customers, net	$	172,106	$	195,078
Royalties receivable, net	4,753		5,386
Other receivables(1)	20,032		14,571
Total receivables	$	196,891	$	215,035
Less: Wholesale accounts receivable reserves(2)(3)	(13,117)		(16,448)
Accounts receivable, net	$	183,774	$	198,587

(1)Includes tax, payroll, gift card and other receivables. Increase primarily relates to receivable for a $6.9 million court approved settlement in December 2023 related to payment card interchange fees.

(2)Includes allowance for chargebacks of $8.4 million and $9.3 million for the periods ended December 30, 2023 and December 31, 2022, respectively.

(3)Includes allowance for credit losses of $4.8 million and $7.2 million for the periods ended December 30, 2023 and December 31, 2022, respectively.

Accounts Receivable Reserves

Information regarding Wholesale accounts receivable reserves is as follows:

(dollars in thousands)	Wholesale accounts receivable reserves
Balance at January 2, 2021	$	12,366
Additional provisions	13,282
Charges to reserve	(6,953)
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

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 30, 2023		December 31, 2022
Contract liabilities - current:
Unredeemed gift cards	$	25,162	$	23,303
Unredeemed customer loyalty rewards	3,355		5,276
Carter’s credit card - upfront bonus(1)	714		714
Total contract liabilities - current(2)	$	29,231	$	29,293
Contract liabilities - non-current(3)	$	714	$	1,429
Total contract liabilities	$	29,945	$	30,722

(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.