Revenue Recognition

12 Months Ended

Dec. 31, 2018

3. Revenue Recognition

The gift card liability included in unearned revenue on the consolidated balance sheets is as follows:




	December 31,
	2018		2017
Gift card liability	$	70,474	$	63,645

Revenue recognized on the consolidated statements of income for the redemption of gift cards that were included in accrued liabilities at the beginning of the year is as follows:




	Year ended December 31,
	2018		2017		2016
Revenue recognized from gift card liability balance at the beginning of the year	$	36,094	$	37,109	$	32,744

We offered a limited-time frequency program called Chiptopia Summer Rewards during the third quarter of 2016, which allowed customers to redeem certain rewards earned through the first quarter of 2017. We deferred revenue reflecting the portion of the original rewards that were earned by program participants and not redeemed, and we recorded a corresponding liability on the consolidated balance sheet. The portion of revenue allocated to the rewards was based on the estimated standalone selling price of the award earned and took into consideration company-specific historical redemption patterns for similar promotions. Revenue was recognized as an award was redeemed, or upon expiration. During the twelve months ended December 31, 2017, we recognized $5,489 in revenue from the deferred liability for the loyalty rewards balance. No other material amounts related to loyalty rewards have been recognized in revenue for any periods presented.