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REVENUE AND CONTRACT LIABILITY
12 Months Ended
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]  
REVENUE AND CONTRACT LIABILITY
21. REVENUE AND CONTRACT LIABILITY

Unearned revenue
 
Unearned revenue consists of the following (in thousands):
 December 31,
 20232022
Loyalty program membership fees and reward points$16,449 $16,795 
Unearned product revenue on undelivered product14,821 10,932 
In store credits11,947 12,046 
Unearned product revenue on unshipped orders4,098 3,536 
Other2,282 1,171 
Total unearned revenue$49,597 $44,480 

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, 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, net35,290 
Decrease due to beginning contract liabilities recognized as revenue(30,173)
Unearned revenue at December 31, 2023$49,597 

Our total unearned revenue related to outstanding loyalty program rewards was $12.1 million and $10.9 million at December 31, 2023 and 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 $5.1 million, $4.4 million, and $6.9 million for the years ended December 31, 2023, 2022, and 2021, respectively. The timing of revenue recognition of these reward dollars is driven by actual customer activities, such as redemptions and expirations. At December 31, 2023, we had an additional $5.6 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 deduction 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, 2020$19,190 
Additions to the allowance237,622 
Deductions from the allowance(242,889)
Allowance for returns at December 31, 202113,923 
Additions to the allowance161,492 
Deductions from the allowance(165,193)
Allowance for returns at December 31, 202210,222 
Additions to the allowance121,939 
Deductions from the allowance(123,510)
Allowance for returns at December 31, 2023$8,651