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REVENUE RECOGNITION
 9 Months Ended
Sep. 26, 2020
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 third quarter and three quarters ended fiscal 2020 and 2019 were as follows:
 
 
Fiscal quarter ended September 26, 2020
(dollars in thousands)
 
U.S. Retail
 
U.S. Wholesale
 
International
 
Total
Wholesale channel
 
$
—

 
$
302,135

 
$
37,838

 
$
339,973

Direct-to-consumer
 
449,150

 
—

 
75,957

 
525,107

 
 
$
449,150

 
$
302,135

 
$
113,795

 
$
865,080

 
 
 
 
 
 
 
 
 
Royalty income
 
$
3,902

 
$
3,986

 
$
1,175

 
$
9,063

 
 
Three fiscal quarters ended September 26, 2020
(dollars in thousands)
 
U.S. Retail
 
U.S. Wholesale
 
International
 
Total
Wholesale channel
 
$
—

 
$
706,009

 
$
92,110

 
$
798,119

Direct-to-consumer
 
1,085,883

 
—

 
150,435

 
1,236,318

 
 
$
1,085,883

 
$
706,009

 
$
242,545

 
$
2,034,437

 
 
 
 
 
 
 
 
 
Royalty income
 
$
7,648

 
$
9,576

 
$
2,765

 
$
19,989

 
 
Fiscal quarter ended September 28, 2019
(dollars in thousands)
 
U.S. Retail
 
U.S. Wholesale
 
International
 
Total
Wholesale channel
 
$
—

 
$
352,256

 
$
56,101

 
$
408,357

Direct-to-consumer
 
464,100

 
—

 
70,865

 
534,965

 
 
$
464,100

 
$
352,256

 
$
126,966

 
$
943,322

 
 
 
 
 
 
 
 
 
Royalty income
 
$
4,244

 
$
4,038

 
$
910

 
$
9,192

 
 
Three fiscal quarters ended September 28, 2019
(dollars in thousands)
 
U.S. Retail
 
U.S. Wholesale
 
International
 
Total
Wholesale channel
 
$
—

 
$
856,713

 
$
121,631

 
$
978,344

Direct-to-consumer
 
1,264,283

 
—

 
176,137

 
1,440,420

 
 
$
1,264,283

 
$
856,713

 
$
297,768

 
$
2,418,764

 
 
 
 
 
 
 
 
 
Royalty income
 
$
10,688

 
$
14,051

 
$
2,632

 
$
27,371


Accounts Receivable from Customers and Licensees
The components of Accounts receivable, net, were as follows:
(dollars in thousands)
 
September 26, 2020
 
December 28, 2019
 
September 28, 2019
Trade receivables from wholesale customers, net(1)
 
$
255,214

 
$
239,059

 
$
277,234

Royalties receivable
 
8,596

 
6,982

 
9,128

Tenant allowances and other receivables
 
12,064

 
16,247

 
16,281

Total gross receivables
 
$
275,874

 
$
262,288

 
$
302,643

Less:
 
 
 
 
 
 
Wholesale accounts receivable reserves(2)
 
(12,643
)
 
(11,283
)
 
(9,440
)
Accounts receivable, net(1)
 
$
263,231

 
$
251,005

 
$
293,203


(1)
The Company reclassified $1.7 million and $1.3 million of customer support related items from Wholesale accounts receivable reserves into Trade receivables from wholesale customers, net for the periods ended December 28, 2019 and September 28, 2019, respectively.
(2)
Includes allowance for credit losses of $7.7 million, $6.4 million, and $4.6 million for the periods ended September 26, 2020, December 28, 2019, and September 28, 2019, 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 26, 2020
 
December 28, 2019
 
September 28, 2019
Contract liabilities - current:


 


 
 
Unredeemed gift cards
$
15,977

 
$
17,563

 
$
14,264

Unredeemed customer loyalty rewards
5,510

 
5,615

 
5,109

Carter's credit card - upfront bonus(1)
714

 
714

 
714

Total contract liabilities - current(2)
$
22,201

 
$
23,892

 
$
20,087

(1)
Carter's credit card - upfront bonus - 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 consolidated balance sheets.