Contracts with Customers

9 Months Ended

Sep. 30, 2019

Revenue from Contract with Customer [Abstract]

Contracts with Customers

CONTRACTS WITH CUSTOMERS

Our current and noncurrent Loyalty Program liability increased by $163 million, to $5,624 million at September 30, 2019, from $5,461 million at December 31, 2018, primarily reflecting an increase in points earned, partially offset by deferred revenue of $1,737 million that we recognized in the 2019 first three quarters. At each reporting period, we evaluate the estimates used in the recognition of Loyalty Program revenues, including estimates of the breakage of points that members will never redeem and the amount of funding we expect to receive over the life of the agreements with various third parties. In the 2019 first three quarters, the updated estimates resulted in a net increase in deferred revenue, and a corresponding net reduction of revenue of approximately $120 million ($90 million net of tax).