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REVENUE AND CONTRACT LIABILITY
6 Months Ended
Jun. 30, 2024
Revenue from Contract with Customer [Abstract]  
REVENUE AND CONTRACT LIABILITY
14. 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, 2022$44,480 
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, 202349,597 
Increase due to deferral of revenue at period end, net30,719 
Decrease due to beginning contract liabilities recognized as revenue(32,510)
Unearned revenue at June 30, 2024$47,806 

Our total unearned revenue related to outstanding loyalty program rewards was $13.6 million and $12.1 million at June 30, 2024 and December 31, 2023, 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 $2.1 million and $1.0 million for the three months ended June 30, 2024 and 2023, respectively, and $3.4 million and $1.9 million for the six months ended June 30, 2024 and 2023, respectively. The timing of revenue recognition of these reward dollars is driven by
actual customer activities, such as redemptions and expirations. At June 30, 2024 and December 31, 2023, we had an additional $5.1 million and $5.6 million, respectively, 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, 2022$10,222 
Additions to the allowance121,939 
Deductions from the allowance(123,510)
Allowance for returns at December 31, 20238,651 
Additions to the allowance58,771 
Deductions from the allowance(58,310)
Allowance for returns at June 30, 2024$9,112