Quarterly report pursuant to Section 13 or 15(d)

REVENUE

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REVENUE
 9 Months Ended
Sep. 30, 2022
Revenue from Contract with Customer [Abstract]  
REVENUE REVENUE
Disaggregation of Revenue
The following table disaggregates revenue by service type and the timing of when these services are provided to the member or customer (in thousands):
Three Months Ended September 30, Nine Months Ended September 30,
2022 2021 2022 2021
Services transferred at a point in time:
Flights, net of discounts and incentives $ 278,917  $ 218,360  $ 799,351  $ 621,494 
Aircraft management 56,558  55,388  172,914  151,405 
Other 58,728  6,679  121,695  16,418 
Services transferred over time:
Memberships 22,409  17,982  67,076  49,144 
Aircraft management 2,404  2,617  7,272  7,435 
Other 1,340  952  3,195  3,319 
Total $ 420,356  $ 301,978  $ 1,171,503  $ 849,215 
Revenue in the condensed consolidated statements of operations is presented net of discounts and incentives of $2.7 million and $9.4 million for the three and nine months ended September 30, 2022, respectively, and $5.0 million and $12.5 million, respectively, for the three and nine months ended September 30, 2021.
Included in services transferred at a point in time, Other, is revenue related to whole aircraft sales of $35.9 million and $63.9 million for the three and nine months ended September 30, 2022, respectively.
Contract Balances
Receivables from member and customer contracts are included within accounts receivable, net on the condensed consolidated balance sheets. As of September 30, 2022 and December 31, 2021, gross receivables from members and customers were $118.1 million and $71.8 million, respectively. As of September 30, 2022 and December 31, 2021, undeposited funds, included within accounts receivable, net, were $13.6 million and $13.5 million, respectively. As of September 30, 2022 and December 31, 2021, the allowance for expected credit losses was $4.3 million and $5.9 million, respectively.
Deferred revenue consists of the following (in thousands):
  September 30, 2022 December 31, 2021
Flights - Prepaid Blocks and jet cards $ 916,372  $ 876,750 
Memberships - annual dues 42,688  47,069 
Memberships - initiation fees 4,119  4,072 
Flights - credits 4,438  6,633 
Other 635  960 
Deferred revenue - total 968,252  935,484 
Less: Deferred revenue - current (966,367) (933,527)
Deferred revenue - non-current $ 1,885  $ 1,957 
Changes in deferred revenue for the nine months ended September 30, 2022 were as follows (in thousands):
Deferred revenue - beginning balance $ 935,484 
Amounts deferred during the period 954,042 
Revenue recognized from amounts included in the deferred revenue beginning balance (509,962)
Revenue from current period sales (411,312)
Deferred revenue - ending balance $ 968,252 
Revenue expected to be recognized in future periods for performance obligations that are unsatisfied, or partially unsatisfied, as of September 30, 2022 approximates $170.6 million for the remaining quarter of 2022 and $511.4 million, $143.3 million and $143.0 million for 2023, 2024 and 2025, respectively.
Costs to Obtain a Contract
Capitalized costs related to sales commissions and referral fees were $3.3 million and $12.6 million for the three and nine months ended September 30, 2022, respectively, and $3.4 million and $7.4 million for the three and nine months ended September 30, 2021, respectively.
As of September 30, 2022 and December 31, 2021, capitalized sales commissions and referral fees of $9.2 million and $8.6 million, respectively, are in other current assets and $1.5 million and $1.4 million, respectively, are in other non-current assets on the condensed consolidated balance sheets. Amortization expense related to capitalized sales commissions and referral fees included in sales and marketing expense in the condensed consolidated statements of operations was $4.4 million and $12.1 million for the three and nine months ended September 30, 2022, respectively, and $2.4 million and $5.9 million for the three and nine months ended September 30, 2021, respectively.