Revenue Recognition

12 Months Ended

Jan. 01, 2022

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenue Recognition

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

	January 1, 2022		January 2, 2021
Deferred contract assets included in:
Other current assets	$	28,048	$	26,593
Other non-current assets	49,343		37,976
	$	77,391	$	64,569

	January 1, 2022		January 2, 2021
Deferred contract liabilities included in:
Other current liabilities	$	36,490	$	35,288
Other non-current liabilities	63,680		49,689
	$	100,170	$	84,977

During the years ended January 1, 2022, January 2, 2021 and December 28, 2019, we recognized revenue of $29 million, $34 million and $32 million, respectively, that was included in the deferred contract liability balance at the beginning of the year.

Revenue from goods and services transferred to customers at a point in time accounted for approximately 98% of our revenues for 2021, 2020 and 2019.

Net sales consisted of the following (in thousands):

	2021		2020		2019
Retail stores	$	1,904,037	$	1,582,266	$	1,558,638
Online, phone, chat and other	280,912		274,289		139,714
Total Company	$	2,184,949	$	1,856,555	$	1,698,352

Obligation for Sales Returns

The activity in the sales returns liability account for 2021 and 2020 was as follows (in thousands):

	2021		2020
Balance at beginning of year	$	24,765	$	19,809
Additions that reduce net sales	91,975		81,513
Deduction from reserves	(94,372)		(76,557)
Balance at end of period	$	22,368	$	24,765