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REVENUE AND CONTRACT LIABILITY
6 Months Ended
Jun. 30, 2023
Revenue from Contract with Customer [Abstract]  
REVENUE AND CONTRACT LIABILITY
13. 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 periods presented (in thousands):
Amount
Unearned revenue at December 31, 2021$59,387 
Increase due to deferral of revenue at period end, net32,993 
Decrease due to beginning contract liabilities recognized as revenue(47,900)
Unearned revenue at December 31, 202244,480 
Increase due to deferral of revenue at period end, net25,248 
Decrease due to beginning contract liabilities recognized as revenue(26,349)
Unearned revenue at June 30, 2023$43,379 

Our total unearned revenue related to outstanding Club O Reward dollars was $10.5 million and $10.9 million at June 30, 2023 and December 31, 2022, respectively. Breakage income related to Club O Reward dollars and gift cards is recognized in Net revenue in our consolidated statements of operations. Breakage included in revenue was $1.0 million and $1.1 million for the three months ended June 30, 2023 and 2022, respectively, and $1.9 million and $2.2 million for the six months ended June 30, 2023 and 2022, respectively. The timing of revenue recognition of these reward dollars is driven by actual customer activities, such as redemptions and expirations.

Sales returns allowance
 
The following table provides additions to and deductions from the sales returns allowance, which is included in our Accrued liabilities balance in our consolidated balance sheets (in thousands):
Amount
Allowance for returns at December 31, 2021$13,923 
Additions to the allowance161,492 
Deductions from the allowance(165,193)
Allowance for returns at December 31, 202210,222 
Additions to the allowance66,298 
Deductions from the allowance(65,227)
Allowance for returns at June 30, 2023$11,293