Revenue Recognition

3 Months Ended

Jun. 30, 2024

Revenue from Contract with Customer [Abstract]

Revenue Recognition

REVENUE RECOGNITION

Disaggregated Revenue. Refer to Note 9, “Reportable Operating Segments,” for further information on the Company’s disaggregation of revenue by reportable operating segment.

Sales Return Asset and Liability. Sales returns are a refund asset for the right to recover the inventory and a refund liability for the stand-ready right of return. The refund asset for the right to recover the inventory is recorded in other current assets and the related refund liability is recorded in other accrued expenses in the condensed consolidated balance sheets.

The following tables summarize changes in the estimated sales returns for the periods presented:

	Recovery Asset		Refund Liability
Balance, March 31, 2024	$	13,866	$	(55,327)
Net additions to sales return liability (1)	10,976		(40,741)
Actual returns	(14,077)		58,277
Balance, June 30, 2024	$	10,765	$	(37,791)

	Recovery Asset		Refund Liability
Balance, March 31, 2023	$	15,685	$	(45,322)
Net additions to sales return liability (1)	8,387		(40,609)
Actual returns	(12,867)		49,373
Balance, June 30, 2023	$	11,205	$	(36,558)

(1) Net additions to the sales return liability include a provision for anticipated sales returns, which consists of both contractual return rights and discretionary authorized returns.

Contract Liabilities. Contract liabilities are recorded in other accrued expenses in the condensed consolidated balance sheets and include loyalty programs and other deferred revenue.

Loyalty Programs. Activity related to loyalty programs was as follows:

	Three Months Ended June 30,
	2024		2023
Beginning balance	$	(17,586)	$	(13,144)
Redemptions and expirations for loyalty certificates and points recognized in net sales	5,060		4,728
Deferred revenue for loyalty points and certificates issued	(4,575)		(3,909)
Ending balance	$	(17,101)	$	(12,325)

Deferred Revenue. Activity related to deferred revenue was as follows:

	Three Months Ended June 30,
	2024		2023
Beginning balance	$	(9,591)	$	(13,448)
Additions of customer cash payments	(27,101)		(20,589)
Revenue recognized	9,254		13,401
Ending balance	$	(27,438)	$	(20,636)

Refer to Note 2, “Revenue Recognition,” in the Company’s consolidated financial statements in Part IV of the 2024 Annual Report for further information on the Company’s variable consideration accounting policies, including sales return asset and liability, as well as contract liabilities.