REVENUE AND CONTRACT LIABILITY

3 Months Ended

Mar. 31, 2023

REVENUE AND CONTRACT LIABILITY [Abstract]

Revenue [Policy Text Block]

12. 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, 2021	$	59,387
Increase due to deferral of revenue at period end, net	32,993
Decrease due to beginning contract liabilities recognized as revenue	(47,900)
Unearned revenue at December 31, 2022	44,480
Increase due to deferral of revenue at period end, net	25,052
Decrease due to beginning contract liabilities recognized as revenue	(22,409)
Unearned revenue at March 31, 2023	$	47,123

Our total unearned revenue related to outstanding Club O Reward dollars was $10.7 million and $10.9 million at March 31, 2023 and December 31, 2022, respectively. Breakage income related to Club O Reward dollars and gift cards is recognized in Net revenue in our consolidated statements of operations. Breakage included in revenue was $849,000 and $1.1 million for the three months ended March 31, 2023 and 2022. The timing of revenue recognition of these reward dollars is driven by actual customer activities, such as redemptions and expirations.

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, 2021	$	13,923
Additions to the allowance	161,492
Deductions from the allowance	(165,193)
Allowance for returns at December 31, 2022	10,222
Additions to the allowance	30,155
Deductions from the allowance	(29,961)
Allowance for returns at March 31, 2023	$	10,416