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Accrued Expenses and Other Current Liabilities
12 Months Ended
Dec. 31, 2024
Subsidiary of Limited Liability Company or Limited Partnership [Line Items]  
Accrued Expenses and Other Current Liabilities

12. Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consisted of the following at December 31, 2024 and 2023 (in thousands):

 

 

December 31,

 

 

December 31,

 

 

 

2024

 

 

2023

 

Accrued marketing expense

 

$

30,573

 

 

$

39,210

 

Accrued customer credits

 

 

55,785

 

 

 

64,318

 

Accrued future customer compensation

 

 

26,614

 

 

 

33,010

 

Accrued payroll

 

 

10,128

 

 

 

17,381

 

Accrued operating expenses

 

 

16,193

 

 

 

20,828

 

Other current liabilities

 

 

25,754

 

 

 

16,895

 

Accrued expenses and other current liabilities

 

$

165,047

 

 

$

191,642

 

Accrued customer credits represent credits issued and outstanding for event cancellations or other service issues related to recorded sales transactions. The accrued amount is reduced by the amount of credits estimated to go unused, or breakage, provided that the credits are not subject to escheatment. We estimate breakage based on historical usage trends and available data on comparable programs, and recognize breakage in proportion to the pattern of redemption for customer credits. Our breakage estimates could be impacted by future activity differing from our estimates, the effects of which could be material.

During the years ended December 31, 2024, 2023, and 2022, $18.5 million, $15.1 million, and $24.3 million of accrued customer credits were redeemed, respectively, and we recognized revenue from breakage of $12.2 million, $20.6 million, and $11.5 million, respectively. Breakage amounts are net of reductions in associated accounts receivable balances.

Accrued future customer compensation represents an estimate of the amount of customer compensation due from cancellation charges in the future. These provisions, which are based on historic experience, revenue volumes for future events, and management’s estimate of the likelihood of future event cancellations, are recognized as a component of Revenues in the Consolidated Statements of Operations. The expected recoveries of these obligations are recorded in Prepaid expenses and other current assets in the Consolidated Balance Sheets. This estimated accrual could be impacted by future activity differing from our estimates, the effects of which could be material. During the years ended December 31, 2024, 2023, and 2022, we recognized a net increase in revenue of $1.1 million, $0.1 million, and $2.3 million, respectively, from the reversals of previously recorded revenue and changes to accrued future customer compensation related to event cancellations where the performance obligations were satisfied in prior periods. During the years ended December 31, 2024 and 2023, accrued future customer compensation decreased by $6.4 million and increased by $2.8 million, respectively, due to a decrease in the estimated rate of future cancellations as of December 31, 2024 and an increase in the estimated rate of future cancellations as of December 31, 2023.