Revenue Recognition

9 Months Ended

Sep. 28, 2019

8. Revenue Recognition

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

	September 28, 2019		December 29, 2018
Deferred Contract Assets included in:
Other current assets	$	22,765	$	20,553
Other non-current assets		32,758		29,456
	$	55,523	$	50,009

	September 28, 2019		December 29, 2018
Deferred Contract Liabilities included in:
Other current liabilities	$	33,885	$	32,395
Other non-current liabilities		44,088		42,194
	$	77,973	$	74,589

During the three months ended September 28, 2019 and September 29, 2018, we recognized revenue of $9 million and $8 million, respectively, that was included in the deferred contract liability balance at the beginning of the respective periods. During the nine months ended September 28, 2019 and September 29, 2018, we recognized revenue of $25 million and $22 million, respectively, that was included in the deferred contract liability balance at the beginning of the respective periods.

Revenue from goods and services transferred to customers at a point in time accounted for approximately 98% of our revenues for both the three and nine months ended September 28, 2019 and September 29, 2018.

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

	Three Months Ended				Nine Months Ended
	September 28, 2019		September 29, 2018		September 28, 2019		September 29, 2018
Retail	$	437,871	$	383,886	$	1,158,096	$	1,026,808
Online and phone		34,520		28,686		89,695		81,580
Company-Controlled channel		472,391		412,572		1,247,791		1,108,388
Wholesale/Other channel		2,387		2,207		9,395		11,362
Total	$	474,778	$	414,779	$	1,257,186	$	1,119,750

Obligation for Sales Returns

The activity in the sales returns liability account was as follows (in thousands):

	Nine Months Ended
	September 28, 2019			September 29, 2018
Balance at beginning of year	$	19,907		$	19,270
Additions that reduce net sales		60,962			57,296
Deductions from reserves		(57,036	)		(56,031	)
Balance at end of period	$	23,833		$	20,535