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REVENUE RECOGNITION | 3 Months Ended
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Mar. 31, 2023
Revenue from Contract with Customer [Abstract] |
REVENUE RECOGNITION | REVENUE RECOGNITION Disaggregation of Revenue The following table disaggregates revenue by service type and the timing of when these services are provided to the member or customer (in thousands):
| Three Months Ended March 31, |  |
| 2023 |  | 2022 |  |  |  |
Services transferred at a point in time: |  |  |  |  |  |  |
Flights, net of discounts and incentives | $ | 231,762 |  |  | $ | 236,363 |  |  |  |  |
Aircraft management | 61,242 |  |  | 58,049 |  |  |  |  |
Other | 31,807 |  |  | 7,178 |  |  |  |  |
Services transferred over time: |  |  |  |  |  |  |
Memberships | 21,680 |  |  | 20,647 |  |  |  |  |
Aircraft management | 2,452 |  |  | 2,457 |  |  |  |  |
Other | 2,869 |  |  | 941 |  |  |  |  |
Total | $ | 351,812 |  |  | $ | 325,635 |  |  |  |  |
Revenue in the condensed consolidated statements of operations is presented net of discounts and incentives of $1.6 million for the three months ended March 31, 2023, and $3.2 million for the three months ended March 31, 2022. Other revenue included within services transferred at a point in time is primarily related to whole aircraft sales of $10.7 million, group charter of $6.4 million and safety and security of $5.9 million for the three months ended March 31, 2023, and whole aircraft sales of $1.1 million for the three months ended March 31, 2022. Contract Balances Accounts receivable, net consists of the following (in thousands):
| March 31, 2023 |  | December 31, 2022
Gross receivables from members and customers | $ | 108,890 |  |  | $ | 112,243 |
Undeposited funds | 6,404 |  |  | 10,122 |
Less: Allowance for credit losses | (7,635) |  |  | (9,982) |
Accounts receivable, net | $ | 107,659 |  |  | $ | 112,383 |
Deferred revenue consists of the following (in thousands):
| March 31, 2023 |  | December 31, 2022
Flights - Prepaid Blocks | $ | 927,607 |  |  | $ | 1,023,985 |
Memberships - annual dues | 41,624 |  |  | 43,970 |
Memberships - initiation fees | 3,677 |  |  | 3,899 |
Flights - credits | 2,423 |  |  | 4,246 |
Other | 2,096 |  |  | 775 |
Deferred revenue - total | 977,427 |  |  | 1,076,875 |
Less: Deferred revenue - current | (975,735) |  |  | (1,075,133) |
Deferred revenue - non-current | $ | 1,692 |  |  | $ | 1,742 |
Changes in deferred revenue for the three months ended March 31, 2023 were as follows (in thousands):
Deferred revenue as of December 31, 2022 | $ | 1,076,875 |
Amounts deferred during the period | 173,226 |
Revenue recognized from amounts included in the deferred revenue beginning balance | (219,462) |
Revenue from current period sales | (53,212) |
Deferred revenue as of March 31, 2023 | $ | 977,427 |
Revenue expected to be recognized in future periods for performance obligations that are unsatisfied, or partially unsatisfied, as of March 31, 2023 were as follows (in thousands):
Remainder of 2023 | $ | 478,252 |
2024 | 323,290 |
2025 | 88,253 |
2026 | 87,632 |
Total | $ | 977,427 |
Costs to Obtain a Contract Capitalized costs related to sales commissions and referral fees were $1.6 million for the three months ended March 31, 2023, and $4.3 million for the three months ended March 31, 2022. As of March 31, 2023 and December 31, 2022, capitalized sales commissions and referral fees of $6.7 million and $8.7 million, respectively, were included in Other current assets and $1.1 million and $1.3 million, respectively, were included in Other non-current assets on the condensed consolidated balance sheets. Amortization expense related to capitalized sales commissions and referral fees included in sales and marketing expense in the condensed consolidated statements of operations was $3.7 million for the three months ended March 31, 2023, and $3.5 million for the three months ended March 31, 2022.

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI https://asc.fasb.org/topic&trid=49130388 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 10 -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130551-203045 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (b)(2) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130556-203045 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 9 -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130550-203045 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130558-203045 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 + Details
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