Annual report pursuant to Section 13 and 15(d)

REVENUES

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REVENUES
 12 Months Ended
Jan. 01, 2022
Revenue from Contract with Customer [Abstract]  
REVENUES REVENUES
The Company recognizes revenue when performance obligations under the terms of the contract with the customer are satisfied based on the transfer of control or promised goods or services.
Performance Obligations
Disclosure is required for the aggregate transaction price allocated to performance obligations that are unsatisfied at the end of a reporting period, unless the optional practical expedients are applicable. The Company elected the practical expedients that do not require disclosure of the transaction price allocated to remaining performance obligations for (i) variable consideration related to sales-based royalty arrangements and (ii) contracts with an original expected duration of one year or less.
As of December 2021, there were no arrangements with any transaction price allocated to remaining performance obligations other than (i) contracts for which the Company has applied the practical expedients and (ii) fixed consideration related to future minimum guarantees. For the year ended December 2021, revenue recognized from performance obligations satisfied, or partially satisfied, in prior periods was not significant.
Contract Balances
Accounts receivable represent the Company's unconditional right to receive consideration from a customer and are recorded at net invoiced amounts, less estimated allowances.
Contract assets are rights to consideration in exchange for goods or services that have been transferred to a customer when that right is conditional on something other than the passage of time. Once the Company has an unconditional right to consideration under a contract, amounts are invoiced and contract assets are reclassified to "accounts receivable" within the Company's balance sheets. The Company's primary contract assets relate to sales-based royalty arrangements.
Contract liabilities are recorded when a customer pays consideration, or the Company has a right to an amount of consideration that is unconditional, before the transfer of a good or service to the customer, and thus represent the Company's obligation to transfer the good or service to the customer.
The following table presents information about contract balances recorded in the Company's balance sheets:
(In thousands) December 2021 December 2020
Accounts receivable, net $ 289,800  $ 231,397 
Contract assets (a)
$ 3,093  $ 5,769 
Contract liabilities (b)
$ 2,258  $ 787 
(a)Included within "prepaid expenses and other current assets" in the Company's balance sheets.
(b)Included within "accrued liabilities" in the Company's balance sheets.
For the year ended December 2021, revenue recognized that was included in contract liabilities as of December 2020 was not significant. For the year ended December 2020, revenue of $1.5 million was recognized that was included in contract liabilities as of December 2019.
Disaggregation of Revenue
The following tables present revenues disaggregated by channel and geography. Revenues from licensing arrangements have been included within the U.S. or Non-U.S. Wholesale channels, based on the respective region where the licensee sells the product. Direct-to-Consumer revenues include the distribution of our products via Wrangler® and Lee® branded full-price stores and company-operated outlet stores, digital sales at www.wrangler.com and www.lee.com and international concession retail locations.
The Other channel primarily included sales of third-party branded merchandise at VF Outlet stores through the first quarter of 2021. During 2020, the Company decided to discontinue the sale of third-party branded merchandise in all VF Outlet stores, exit certain VF Outlet stores and converted all remaining locations to Lee Wrangler OutletTM and Lee Wrangler Clearance CenterTM retail stores. Sales of Wrangler® and Lee® branded products in our retail stores are not included in Other and are reported in the Direct-to-Consumer channel discussed above. Prior to 2020, the Other category also included transactions with VF for pre-Separation activities. These transactions included sales of VF-branded products at VF Outlet stores, as well as sales to VF for products manufactured in our plants, use of our transportation fleet and fulfillment of a transition services agreement related to VF’s sale of its Nautica® brand business in mid-2018.
Year Ended December 2021
(In thousands) Wrangler Lee Other Total
Channel revenues
U.S. Wholesale $ 1,269,718  $ 420,720  $ 9,979  $ 1,700,417 
Non-U.S. Wholesale 186,355  301,332  2,854  490,541 
Direct-to-Consumer 119,158  165,000  21  284,179 
Other —  —  779  779 
Total $ 1,575,231  $ 887,052  $ 13,633  $ 2,475,916 
Geographic revenues
U.S. $ 1,370,916  $ 487,214  $ 10,779  $ 1,868,909 
International 204,315  399,838  2,854  607,007 
Total $ 1,575,231  $ 887,052  $ 13,633  $ 2,475,916 
Year Ended December 2020
(In thousands) Wrangler Lee Other Total
Channel revenues
U.S. Wholesale $ 1,101,148  $ 319,347  $ 10,244  $ 1,430,739 
Non-U.S. Wholesale 147,738  214,493  2,024  364,255 
Direct-to-Consumer 100,528  153,780  22  254,330 
Other —  —  48,515  48,515 
Total $ 1,349,414  $ 687,620  $ 60,805  $ 2,097,839 
Geographic revenues
U.S. $ 1,189,060  $ 394,311  $ 58,781  $ 1,642,152 
International 160,354  293,309  2,024  455,687 
Total $ 1,349,414  $ 687,620  $ 60,805  $ 2,097,839 
Year Ended December 2019
(In thousands) Wrangler Lee Other Total
Channel revenues
U.S. Wholesale $ 1,198,303  $ 391,887  $ 22,137  $ 1,612,327 
Non-U.S. Wholesale 213,905  314,882  1,585  530,372 
Direct-to-Consumer 105,904  175,507  27  281,438 
Other —  —  124,702  124,702 
Total $ 1,518,112  $ 882,276  $ 148,451  $ 2,548,839 
Geographic revenues
U.S. $ 1,282,428  $ 481,050  $ 146,469  $ 1,909,947 
International 235,684  401,226  1,982  638,892 
Total $ 1,518,112  $ 882,276  $ 148,451  $ 2,548,839