Revenue Recognition

12 Months Ended

Dec. 29, 2018

(9) Revenue Recognition

Deferred contract liabilities and deferred contract assets are included in our consolidated balance sheets as follows (in thousands):

	December 29, 2018		December 30, 2017
Deferred Contract Liabilities included in:
Other current liabilities	$	32,395	$	29,534
Other non-current liabilities		42,194		43,159
	$	74,589	$	72,693

	December 29, 2018		December 30, 2017
Deferred Contract Assets included in:
Other current assets	$	20,553	$	17,208
Other non-current assets		29,456		25,772
	$	50,009	$	42,980

During the year ended December 29, 2018, we recognized revenue of $30 million that was included in the deferred contract liability balance at the beginning of the year.

Revenue from goods and services transferred to customers at a point in time accounted for approximately 98% of our revenues for 2018 and 2017.

Net sales from each of our channels was as follows (in thousands):

	2018		2017
Retail	$	1,401,991	$	1,324,690
Online and phone		115,831		101,145
Company-Controlled channel		1,517,822		1,425,835
Wholesale/Other channel		13,753		18,662
Total	$	1,531,575	$	1,444,497

Obligation for Sales Returns

We accept sales returns during a 100-night trial period. Accrued sales returns represent a refund liability for the amount of consideration that we do not expect to be entitled to because it will be refunded to customers. The refund liability estimate is based on historical return rates and is adjusted for any current trends as appropriate. Each reporting period we remeasure the liability to reflect changes in the estimate, with a corresponding adjustment to net sales. The activity in the sales returns liability account for 2018 and 2017 was as follows (in thousands):

	2018			2017
Balance at beginning of year	$	19,270		$	15,222
Additions that reduce net sales		79,326			77,226
Deduction from reserves		(78,689	)		(73,178	)
Balance at end of period	$	19,907		$	19,270