Revenue recognition Revenue from sales related to retail operations is recognized when the merchandise is delivered to the customer at the point of sale. Revenue from sales that are shipped or delivered directly to customers is recognized upon estimated delivery to the customer and includes applicable shipping or delivery revenue. Revenue from sales that are installed is recognized upon completion of the installation service to the customer and includes applicable installation revenue. Revenue from sales of other services is recognized upon the completion of the service. Revenue from sales related to manufacturing operations is recorded upon shipment. Sales are recorded net of sales taxes collected from customers. A sales return allowance is recorded for estimated returns of merchandise subsequent to the balance sheet date that relate to sales prior to the balance sheet date. The returns allowance is based on historical return patterns and reduces sales and cost of sales, accordingly. Merchandise exchanges of similar product and price are not considered merchandise returns and, therefore, are excluded when calculating the sales returns allowance. In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers , an updated standard on revenue recognition (codified as Accounting Standards Codification (ASC) Topic 606). The Company adopted this standard in the first quarter of fiscal 2018 and elected to use the modified-retrospective approach for implementation of the standard. The core principle of the new standard is for companies to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration (that is, payment) to which the Company expects to be entitled in exchange for those goods or services. The Company identified certain impacts to our accounting for gift cards given away for promotional or marketing purposes. Under previous GAAP, the value of promotional gift cards was recorded as selling, general, and administrative expense (SG&amp;A). The new standard requires these types of gift cards to be accounted for as a reduction of revenue (i.e. a discount). Additionally, ASU 2014-09 disallows the capitalization of direct-response advertising costs which impacts the timing of recognition of certain advertising production and distribution costs. The Company adopted this standard in the first quarter of fiscal 2018 and the Company elected to use the modified-retrospective approach for implementation of the standard. Upon transition on April 1, 2018, the Company recorded a cumulative adjustment to increase retained earnings/(deficit) and decrease accrued liabilities by approximately $400. The Company also reclassified the asset balance for the estimate of future returned merchandise, which was approximately $900 as of March 31, 2018, from the Inventory line to the Other current assets line on the balance sheet. Overall, the adoption of ASU 2014-09 did not result in a material impact to the Companys financial statements. Note 14 provides the related disaggregated revenue disclosures. Contract Balances Contract balances as a result of transactions with customers primarily consist of trade receivables included in Accounts receivable, net, unearned revenue included in Accrued liabilities, and gift cards and store credits outstanding included in Accrued liabilities in the Company's Consolidated Balance Sheets. Note 3 provides the Company's trade receivables, unearned revenue, and gift cards and store credits outstanding with customers as of March 30, 2019 and March 31, 2018. Below is a rollforward of contract liability balances from March 31, 2018 to March 30, 2019, which illustrates the amount of contract liability as of March 31, 2018 which was subsequently recognized into revenue in the fifty-two weeks ended March 30, 2019: Contract liability Revenue recognized Contract liabilities Contract liability balance at from beginning added during balance at March 31, 2018 (1) liability period (2) March 30, 2019 Unearned revenue $ 11,080 $ (10,880) $ 10,544 $ 10,744 Gift cards and store credits outstanding $ 8,470 $ (3,184) $ 3,491 $ 8,777 (1) Gift cards and store credits outstanding balance is net of revenue recognition transition adjustment (2) Net of estimated breakage