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Revenues
 3 Months Ended
Mar. 31, 2022
Revenue from Contract with Customer [Abstract]  
REVENUES REVENUES
For a discussion of disaggregated revenue, refer to Note 19.
The Company records reductions to revenue for estimated customer returns, allowances, markdowns and discounts. These reserves are included within customer refund liability and the value of the inventory associated with reserves for sales returns are included within prepaid expenses and other current assets on the Condensed Consolidated Balance Sheets. The following table presents the customer refund liability, as well as the associated value of inventory for the periods indicated:
Balance as of
March 31, 2022		Balance as of
December 31, 2021		Balance as of
March 31, 2021
Customer refund liability$159,628 $164,294 $191,979 
Inventory associated with the reserves$44,291 $47,569 $54,540 
Contract Liabilities
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 at a future date. The Company's contract liabilities primarily consist of payments received in advance of revenue recognition for subscriptions for the Company's digital fitness applications and royalty arrangements, included in other current and other long-term liabilities, and gift cards, included in accrued expenses on the Company's Condensed Consolidated Balance Sheets. As of March 31, 2022, December 31, 2021 and March 31, 2021, contract liabilities were $35.3 million, $39.1 million and $25.5 million, respectively.
During the three months ended March 31, 2022, the Company recognized approximately $5.0 million of revenue that was previously included in contract liabilities as of December 31, 2021. During the three months ended March 31, 2021, the Company recognized $6.0 million of revenue that was previously included in contract liabilities as of December 31, 2020. The change in the contract liabilities balance primarily results from the timing differences between the Company's satisfaction of performance obligations and the customer's payment. Commissions related to subscription revenue are capitalized and recognized over the subscription period.