Revenue Recognition

3 Months Ended

Mar. 30, 2019

8. Revenue Recognition

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

	March 30, 2019		December 29, 2018
Deferred Contract Assets included in:
Other current assets	$	21,342	$	20,553
Other non-current assets		30,829		29,456
	$	52,171	$	50,009

	March 30, 2019		December 29, 2018
Deferred Contract Liabilities included in:
Other current liabilities	$	33,023	$	32,395
Other non-current liabilities		43,044		42,194
	$	76,067	$	74,589

During the three months ended March 30, 2019 and March 31, 2018, we recognized revenue of $9 million and $8 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% of our revenues for both the three months ended March 30, 2019 and March 31, 2018.

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

	Three Months Ended
	March 30, 2019		March 31, 2018
Retail	$	392,226	$	356,069
Online and phone		29,763		27,967
Company-Controlled channel		421,989		384,036
Wholesale/Other channel		4,456		4,597
Total	$	426,445	$	388,633

Obligation for Sales Returns

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

	Three Months Ended
	March 30, 2019			March 31, 2018
Balance at beginning of year	$	19,907		$	19,270
Additions that reduce net sales		21,726			20,651
Deduction from reserves		(21,676	)		(20,905	)
Balance at end of period	$	19,957		$	19,016