v3.21.2

REVENUE

9 Months Ended

Sep. 30, 2021

REVENUE

REVENUE

2. REVENUE

The Company’s products and services are reported under two segments—AIR MILES Reward Program and BrandLoyalty, as shown below. The following tables present revenue disaggregated by major source, as well as geographic region based on the location of the subsidiary that generally correlates with the location of the customer:

​

​	​	​	​	​	​	​	​	​	​
​		AIR MILES			​	​		​	​
Three Months Ended September 30, 2021	​	Reward Program		​	BrandLoyalty		​	Total
​	​	(in thousands)
Disaggregation of Revenue by Major Source:	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​
Coalition loyalty program	​	$	68,580	​	$	—	​	$	68,580
Campaign-based loyalty solutions	​		—	​		95,799	​		95,799
Other	​		10	​		1,530	​		1,540
Revenue from contracts with customers	​	$	68,590	​	$	97,329	​	$	165,919
​	​	​	​	​	​	​	​	​	​
Investment income	​		3,338	​	​	—	​		3,338
Total	​	$	71,928	​	$	97,329	​	$	169,257

​

​	​	​	​	​	​	​	​	​	​
​		AIR MILES			​	​		​	​
Three Months Ended September 30, 2020	​	Reward Program		​	BrandLoyalty		​	Total
​	​	(in thousands)
Disaggregation of Revenue by Major Source:	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​
Coalition loyalty program	​	$	62,938	​	$	—	​	$	62,938
Campaign-based loyalty solutions	​		—	​		117,435	​		117,435
Other	​		(17)	​		1,123	​		1,106
Revenue from contracts with customers	​	$	62,921	​	$	118,558	​	$	181,479
​	​	​	​	​	​	​	​	​	​
Investment income	​		3,277	​		—	​		3,277
Total	​	$	66,198	​	$	118,558	​	$	184,756

​

​	​	​	​	​	​	​	​	​	​
​		AIR MILES			​	​		​	​
Nine Months Ended September 30, 2021	​	Reward Program		​	BrandLoyalty		​	Total
​	​	(in thousands)
Disaggregation of Revenue by Major Source:	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​
Coalition loyalty program	​	$	203,870	​	$	—	​	$	203,870
Campaign-based loyalty solutions	​		—	​		278,726	​		278,726
Other	​		12	​		3,867	​		3,879
Revenue from contracts with customers	​	$	203,882	​	$	282,593	​	$	486,475
​	​	​	​	​	​	​	​	​	​
Investment income	​		10,241	​		—	​		10,241
Total	​	$	214,123	​	$	282,593	​	$	496,716

​

​	​	​	​	​	​	​	​	​	​
​		AIR MILES			​	​		​	​
Nine Months Ended September 30, 2020	​	Reward Program		​	BrandLoyalty		​	Total
​	​	(in thousands)
Disaggregation of Revenue by Major Source:	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​
Coalition loyalty program	​	$	195,870	​	$	—	​	$	195,870
Campaign-based loyalty solutions	​		—	​		322,504	​		322,504
Other	​		1,903	(1)		4,077	​		5,980
Revenue from contracts with customers	​	$	197,773	​	$	326,581	​	$	524,354
​	​	​	​	​	​	​	​	​	​
Investment income	​		9,578	​		—	​		9,578
Total	​	$	207,351	​	$	326,581	​	$	533,932

(1) Includes revenues from Precima®, a provider of retail strategy and customer data applications and analytics, which was sold by the Parent on January 10, 2020, which comprised $1.9 million for the nine months ended September 30, 2020. See Note 4, “Dispositions,” for more information.

​	​	​	​	​	​	​	​	​	​
​		AIR MILES			​	​		​	​
Three Months Ended September 30, 2021	​	Reward Program		​	BrandLoyalty		​	Total
​	​	(in thousands)
Disaggregation of Revenue by Geographic Region:	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​
United States	​	$	—	​	$	95	​	$	95
Canada	​		71,928	​		3,894	​		75,822
Europe, Middle East and Africa	​		—	​		68,168	​		68,168
Asia Pacific	​		—	​		22,967	​		22,967
Other	​		—	​		2,205	​		2,205
Total	​	$	71,928	​	$	97,329	​	$	169,257

​

​	​	​	​	​	​	​	​	​	​
​		AIR MILES			​	​		​	​
Three Months Ended September 30, 2020	​	Reward Program		​	BrandLoyalty		​	Total
​	​	(in thousands)
Disaggregation of Revenue by Geographic Region:	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​
United States	​	$	—	​	$	3,316	​	$	3,316
Canada	​		66,198	​		4,132	​		70,330
Europe, Middle East and Africa	​		—	​		76,876	​		76,876
Asia Pacific	​		—	​		12,549	​		12,549
Other	​		—	​		21,685	​		21,685
Total	​	$	66,198	​	$	118,558	​	$	184,756

​

​	​	​	​	​	​	​	​	​	​
​		AIR MILES			​	​		​	​
Nine Months Ended September 30, 2021	​	Reward Program		​	BrandLoyalty		​	Total
​	​	(in thousands)
Disaggregation of Revenue by Geographic Region:	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​
United States	​	$	—	​	$	2,637	​	$	2,637
Canada	​		214,123	​		15,163	​		229,286
Europe, Middle East and Africa	​		—	​		200,022	​		200,022
Asia Pacific	​		—	​		57,690	​		57,690
Other	​		—	​		7,081	​		7,081
Total	​	$	214,123	​	$	282,593	​	$	496,716

​

​	​	​	​	​	​	​	​	​	​
​		AIR MILES			​	​		​	​
Nine Months Ended September 30, 2020	​	Reward Program		​	BrandLoyalty		​	Total
​	​	(in thousands)
Disaggregation of Revenue by Geographic Region:	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​
United States	​	$	1,028	​	$	8,562	​	$	9,590
Canada	​		206,055	​		8,065	​		214,120
Europe, Middle East and Africa	​		268	​		195,884	​		196,152
Asia Pacific	​		—	​		62,960	​		62,960
Other	​		—	​		51,110	​		51,110
Total	​	$	207,351	​	$	326,581	​	$	533,932

​

Contract Liabilities

The Company records a contract liability when cash payments are received in advance of its performance, which applies to the service and redemption of an AIR MILES reward mile and the reward products for its campaign-based loyalty solutions.

A reconciliation of contract liabilities for the AIR MILES Reward Program is as follows:

​

​	​	​	​	​	​	​	​	​	​
​	​	Deferred Revenue
​		Service			Redemption			Total
​	​	(in thousands)
Balance at January 1, 2021	​	$	247,186	​	$	756,833	​	$	1,004,019
Cash proceeds	​		128,988	​	​	206,715	​		335,703
Revenue recognized (1)	​		(148,373)	​	​	(175,696)	​		(324,069)
Other	​		—	​	​	1,182	​		1,182
Effects of foreign currency translation	​		1,290	​	​	2,775	​		4,065
Balance at September 30, 2021	​	$	229,091	​	$	791,809	​	$	1,020,900
Amounts recognized in the combined balance sheets:	​			​			​
Deferred revenue (current)	​	$	132,486	​	$	791,809	​	$	924,295
Deferred revenue (non-current)	​	$	96,605	​	$	—	​	$	96,605

(1) Reported on a gross basis herein.

The deferred redemption obligation associated with the AIR MILES Reward Program is effectively due on demand from the collector base, thus the timing of revenue recognition is based on the redemption by the collector. Service revenue is amortized over the expected life of a mile, with the deferred revenue balance expected to be recognized into revenue in the amount of $44.5 million in 2021, $109.5 million in 2022, $57.6 million in 2023, and $17.5 million in 2024.

The contract liabilities for BrandLoyalty’s campaign-based loyalty solutions are recognized in other current liabilities in the Company’s unaudited condensed combined balance sheets. The beginning balance as of January 1, 2021 was $66.9 million and the closing balance as of September 30, 2021 was $107.2 million, with the change due to cash payments received in advance of program performance, offset in part by revenue recognized of approximately $226.9 million during the nine months ended September 30, 2021.

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The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

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