XML 41 R27.htm IDEA: XBRL DOCUMENT v3.22.0.1
REVENUE AND CONTRACT LIABILITY
12 Months Ended
Dec. 31, 2021
Revenue from Contract with Customer [Abstract]  
UNEARNED REVENUE
10. UNEARNED REVENUE

Unearned revenue consists of the following (in thousands):
 December 31,
 20212020
Unearned product revenue on undelivered product$20,689 $35,952 
Club O membership fees and reward points16,701 14,860 
In store credits11,777 9,207 
Unearned product revenue on unshipped orders9,107 10,489 
Unredeemed gift cards711 1,143 
Other402 514 
Total unearned revenue$59,387 $72,165 
18. REVENUE AND CONTRACT LIABILITY

Unearned revenue
 
The following table provides information about unearned revenue from contracts with customers, including significant changes in unearned revenue balances during the period (in thousands):
Amount
Unearned revenue at December 31, 2019
$41,116 
Increase due to deferral of revenue at period end66,070 
Decrease due to beginning contract liabilities recognized as revenue(35,021)
Unearned revenue at December 31, 2020
72,165 
Increase due to deferral of revenue at period end51,384 
Decrease due to beginning contract liabilities recognized as revenue(64,162)
Unearned revenue at December 31, 2021
$59,387 

Our total unearned revenue related to outstanding Club O Reward dollars was $10.0 million and $8.6 million at December 31, 2021 and 2020, respectively. Breakage income related to Club O Reward dollars and gift cards are recognized as a component of Net revenue in our consolidated statements of operations. The timing of revenue recognition of these reward dollars is driven by actual customer activities, such as redemptions and expirations.

Breakage included in revenue was $6.9 million, $5.4 million, and $4.2 million for the years ended December 31, 2021, 2020, and 2019, respectively.

Sales returns allowance
 
The following table provides additions to and deduction from the sales returns allowance (in thousands):
Amount
Allowance for returns at December 31, 2018$15,261 
Additions to the allowance117,039 
Deductions from the allowance(121,194)
Allowance for returns at December 31, 2019
11,106 
Additions to the allowance204,810 
Deductions from the allowance(196,726)
Allowance for returns at December 31, 2020
19,190 
Additions to the allowance237,622 
Deductions from the allowance(242,889)
Allowance for returns at December 31, 2021
$13,923