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REVENUE AND CONTRACT LIABILITY
3 Months Ended
Mar. 31, 2025
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, 2023$49,597 
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, 202443,095 
Increase due to deferral of revenue at period end, net20,543 
Decrease due to beginning contract liabilities recognized as revenue(22,831)
Unearned revenue at March 31, 2025$40,807 
Our total unearned revenue related to outstanding loyalty program rewards was $6.6 million and $11.1 million at March 31, 2025 and December 31, 2024, 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 $6.6 million and $1.3 million for the three months ended March 31, 2025 and 2024, respectively. The timing of revenue recognition of these reward dollars is driven by actual customer activities, such as redemptions and expirations. At March 31, 2025 and December 31, 2024, we had an additional $4.3 million and $4.6 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, 2023$8,651 
Additions to the allowance105,353 
Deductions from the allowance(104,478)
Allowance for returns at December 31, 20249,526 
Additions to the allowance20,955 
Deductions from the allowance(22,760)
Allowance for returns at March 31, 2025$7,721