Revenues

12 Months Ended

Mar. 31, 2023

Revenue from Contract with Customer [Abstract]

REVENUES

REVENUES

The following tables summarize the Company's net revenues by product category and distribution channels:

	Year Ended March 31, 2023		Three Months Ended March 31, 2022 (Transition Period)		Year Ended December 31, 2021		Year Ended December 31, 2020
Apparel	$	3,871,638	$	876,604	$	3,841,249	$	2,882,562
Footwear	1,455,265		296,696		1,264,127		934,333
Accessories	408,521		96,803		461,894		414,082
Net Sales	5,735,424		1,270,103		5,567,270		4,230,977
License revenues	116,746		26,602		112,623		105,779
Corporate Other	51,466		4,240		3,573		137,911
Total net revenues	$	5,903,636	$	1,300,945	$	5,683,466	$	4,474,667

	Year Ended March 31, 2023		Three Months Ended March 31, 2022 (Transition Period)		Year Ended December 31, 2021		Year Ended December 31, 2020
Wholesale	$	3,468,126	$	829,179	$	3,245,749	$	2,383,353
Direct-to-consumer	2,267,298		440,924		2,321,521		1,847,624
Net Sales	5,735,424		1,270,103		5,567,270		4,230,977
License revenues	116,746		26,602		112,623		105,779
Corporate Other	51,466		4,240		3,573		137,911
Total net revenues	$	5,903,636	$	1,300,945	$	5,683,466	$	4,474,667

The Company records reductions to revenue for estimated customer returns, allowances, markdowns and discounts. These reserves are included within customer refund liability and the value of the inventory associated with reserves for sales returns are included within prepaid expenses and other current assets on the Consolidated Balance Sheets. The following table presents the customer refund liability, as well as the associated value of inventory for the periods indicated:

	As of March 31, 2023		As of March 31, 2022		As of December 31, 2021
Customer refund liability	$	160,533	$	159,628	$	164,294
Inventory associated with reserves for sales returns	$	40,661	$	44,291	$	47,569

Contract Liabilities

Contract liabilities are recorded when a customer pays consideration, or the Company has a right to an amount of consideration that is unconditional, before the transfer of a good or service to the customer, and thus represent the Company's obligation to transfer the good or service to the customer at a future date. The Company's contract liabilities primarily consist of payments received in advance of revenue recognition for subscriptions for the Company's digital fitness applications and royalty arrangements which are in in other current and other long-term liabilities, and gift cards, included in accrued expenses on the Company's Consolidated Balance Sheets. As of March 31, 2023, contract liabilities were $25.9 million (March 31, 2022: $35.3 million; December 31, 2021: $39.1 million).

During Fiscal 2023, the Company completed an assessment of its process for estimating revenue recognized for gift card balances not expected to be redeemed (“breakage”). Based on the assessment, which included analyzing historical gift card redemption data, the Company has determined that substantially all of its gift cards are redeemed within 24 months of issuance, and after 24 months the likelihood of a gift card being redeemed is remote. Therefore, to the extent that it does not have a legal obligation to remit the value of such unredeemed gift cards to the relevant jurisdiction as unclaimed or abandoned property, the Company recognizes gift card breakage at that time when the likelihood of the gift card being redeemed is remote, which the Company has determined to be 24 months following its issuance. As a result, the Company recognized approximately $10.1 million of revenue during Fiscal 2023, that was previously included in contract liabilities, which benefited net income by $10.1 million, or $0.02 per share of Class A, B and C Common Stock. For Fiscal 2023, including the breakage discussed above, the Company recognized approximately $19.3 million, of revenue that was previously included in contract liabilities as of March 31, 2022. For Fiscal 2021, the Company recognized approximately $21.5 million of revenue that was previously included in contract liabilities as of December 31, 2020. For the Transition Period, the Company recognized $5.0 million of revenue that was previously included in contract liabilities as of December 31, 2021. The change in the contract liabilities balance primarily results from the timing differences between the Company's satisfaction of performance obligations and the customer's payment, and with respect to Fiscal 2023, the breakage discussed above.