Revenue Recognition

6 Months Ended

Jul. 03, 2022

Revenue Recognition [Abstract]

Revenue Recognition

6.Revenue Recognition

The Company’s revenues consist primarily of annual membership fees, and initial registration fees paid by members historically; food and beverage, accommodation and spa revenues generated in the Company’s Houses; and revenues that are not generated within the Houses, such as revenues from Scorpios Beach Club, Soho Works sites and our stand-alone restaurants, procurement fees from SHD, Soho Home and Cowshed retail products, and other revenues from products and services that we provide outside of our Houses, as well as management fees from The Ned and The LINE and Saguaro hotels. Disaggregated revenue disclosures by reportable segments for the 13 weeks and 26 weeks ended July 3, 2022 and July 4, 2021 are included in Note 18, Segments.

The following table includes estimated revenues expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period ended July 3, 2022.

(in thousands)	Next twelve months from July 3, 2022		Future periods
Membership, registration fees, and House Introduction Credits	$	77,593	$	24,440
Total future revenues	$	77,593	$	24,440

All consideration from contracts with customers is included in the amounts presented above.

The following table provides information about contract receivables, contract assets and contract liabilities from contracts with customers:

	As of
(in thousands)	July 3, 2022		January 2, 2022
Contract receivables	$	34,633	$	19,338
Contract assets		5,987		5,553
Contract liabilities		129,081		113,630

Contract assets consist of accrued unbilled income related to build-out contracts and are recognized in prepaid expenses and other current assets on the unaudited condensed consolidated balance sheets.

Contract liabilities include deferred membership revenue, hotel deposits (which are presented in accrued liabilities on the unaudited condensed consolidated balance sheets), and gift vouchers. Revenue recognized that was included in the contract liabilities balance as of the beginning of the period was $24 million and $21 million during the 13 weeks ended July 3, 2022 and July 4, 2021, respectively, and $43 million and $37 million during the 26 weeks ended July 3, 2022 and July 4, 2021, respectively.