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Revenue Recognition
 12 Months Ended
Dec. 31, 2023
Revenue Recognition [Abstract]  
Revenue Recognition
7.
Revenue Recognition

 

Disaggregated revenue disclosures for the fiscal years ended December 31, 2023, January 1, 2023, and January 2, 2022 are included in Note 21, Segments.

 

Revenue from membership fees, legacy one-time registration fees, house introduction credits and build-out contracts are the primary arrangements for which revenue is recognized over time. Revenue from these sources combined accounted for 32%, 30%, and 36% of the Company's revenue for the fiscal years ended December 31, 2023, January 1, 2023, and January 2, 2022, respectively.

 

The following table includes estimated revenues expected to be recognized in the future related to performance obligations that were unsatisfied (or partially unsatisfied) at the end of the reporting period ending December 31, 2023.

 

(in thousands)

December 31, 2023

 

 

Future periods

 

Membership, registration fees, and House Introduction Credits

$

100,006

 

 

$

25,787

 

Total future revenues

$

100,006

 

 

$

25,787

 

 

All consideration from contracts with customers is included in the amounts presented above.

 

The following table provides information about contract receivables, contract assets and contract liabilities from contracts with customers:

 

 

 

As of

 

(in thousands)

 

December 31, 2023

 

 

January 1, 2023

 

Contract receivables

 

$

58,158

 

 

$

42,215

 

Contract assets

 

 

3,778

 

 

 

9,344

 

Contract liabilities

 

 

155,356

 

 

 

130,975

 

 

Contract receivables comprises solely of Accounts receivable, net which comprise amounts due from customers and partners including amounts owed from sites operated under management contracts, amounts billed under build-out contracts and amounts due from Retail wholesale partners.

 

Contract assets consist of accrued unbilled income related to build-out contracts and are recognized in prepaid expenses and other current assets on the consolidated balance sheets. Refer to Note 8, Prepaid Expenses and Other Current Assets. All contract assets recognized as of January 2, 2022 of $6 million were billed to customers and transferred to receivables as of January 1, 2023. All contract assets as of January 1, 2023 of $9 million were billed to customers and transferred to receivables as of December 31, 2023.

 

Contract liabilities include deferred membership revenue, hotel deposits (which are presented in accrued liabilities on the consolidated balance sheets), and gift vouchers. Significant changes in contract liabilities balances during the period are as follows:

 

 

 

For the Fiscal Year Ended

 

(in thousands)

 

December 31, 2023

 

 

January 1, 2023

 

 

January 2, 2022

 

Opening balance

 

$

130,975

 

 

$

113,630

 

 

$

85,723

 

Revenue recognized that was included in the contract liability balance at the beginning of the period

 

 

(85,846

)

 

 

(86,111

)

 

 

(61,763

)

Increases due to cash received during the period

 

 

109,684

 

 

 

104,652

 

 

 

89,914

 

Foreign currency translation

 

 

543

 

 

 

(1,196

)

 

 

(244

)

Closing balance

 

$

155,356

 

 

$

130,975

 

 

$

113,630