XML 31 R21.htm IDEA: XBRL DOCUMENT v3.23.3
REVENUE AND CONTRACT LIABILITY
 9 Months Ended
Sep. 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, net31,682 
Decrease due to beginning contract liabilities recognized as revenue(28,712)
Unearned revenue at September 30, 2023$47,450 

Our total unearned revenue related to outstanding loyalty program rewards was $11.3 million and $10.9 million at September 30, 2023 and December 31, 2022, respectively. Breakage income related to loyalty program rewards and gift cards is recognized in Net revenue in our consolidated statements of operations. Breakage included in revenue was $948,000 and $1.1 million for the three months ended September 30, 2023 and 2022, respectively, and $2.8 million and $3.3 million for the nine months ended September 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. At September 30, 2023, we had an additional $5.8 million of unearned contract revenue classified within Other long-term liabilities on our consolidated balance sheets.

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 allowance94,331 
Deductions from the allowance(96,231)
Allowance for returns at September 30, 2023$8,322