Revenue Recognition

6 Months Ended

Jun. 29, 2019

8. Revenue Recognition

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

	June 29, 2019		December 29, 2018
Deferred Contract Assets included in:
Other current assets	$	21,726	$	20,553
Other non-current assets		30,930		29,456
	$	52,656	$	50,009

	June 29, 2019		December 29, 2018
Deferred Contract Liabilities included in:
Other current liabilities	$	33,053	$	32,395
Other non-current liabilities		42,340		42,194
	$	75,393	$	74,589

During both the three months ended June 29, 2019 and June 30, 2018, we recognized revenue of $8 million that was included in the deferred contract liability balance at the beginning of the respective periods. During the six months ended June 29, 2019 and June 30, 2018, we recognized revenue of $17 million and $16 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% and 97% of our revenues for the three months ended June 29, 2019 and June 30, 2018, respectively. Revenue from goods and services transferred to customers at a point in time accounted for approximately 98% of our revenues for both the six months ended June 29, 2019 and June 30, 2018.

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

	Three Months Ended				Six Months Ended
	June 29, 2019		June 30, 2018		June 29, 2019		June 30, 2018
Retail	$	327,999	$	286,853	$	720,225	$	642,922
Online and phone		25,412		24,927		55,175		52,894
Company-Controlled channel		353,411		311,780		775,400		695,816
Wholesale/Other channel		2,552		4,558		7,008		9,155
Total	$	355,963	$	316,338	$	782,408	$	704,971

Obligation for Sales Returns

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

	Six Months Ended
	June 29, 2019			June 30, 2018
Balance at beginning of year	$	19,907		$	19,270
Additions that reduce net sales		37,543			36,555
Deductions from reserves		(39,684	)		(39,298	)
Balance at end of period	$	17,766		$	16,527