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REVENUE AND CONTRACT LIABILITY
12 Months Ended
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]  
REVENUE AND CONTRACT LIABILITY
20. REVENUE AND CONTRACT LIABILITY

Unearned revenue
 
Unearned revenue consists of the following (in thousands):
 December 31,
 20242023
Loyalty program membership fees and reward points$13,918 $16,449 
In store credits11,462 11,947 
Unearned product revenue on undelivered product11,192 14,821 
Unearned product revenue on unshipped orders3,610 4,098 
Other2,913 2,282 
Total unearned revenue$43,095 $49,597 

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, 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, net32,802 
Decrease due to beginning contract liabilities recognized as revenue(39,304)
Unearned revenue at December 31, 2024$43,095 

Our total unearned revenue related to outstanding loyalty program rewards was $11.1 million and $12.1 million at December 31, 2024 and 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 $7.2 million, $5.1 million, and $4.4 million for the years ended December 31, 2024, 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 December 31, 2024 and 2023, we had an additional $4.6 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 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, 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 allowance121,939 
Deductions from the allowance(123,510)
Allowance for returns at December 31, 20238,651 
Additions to the allowance105,353 
Deductions from the allowance(104,478)
Allowance for returns at December 31, 2024$9,526