Company: UP
Filing Date: 2025-03-11
Form Type: 10-K
Source: 0001819516-25-000012
Chunk: 265

Company: Wheels Up Experience Inc.
Filing Date: 2025-03-11
Form: 10-K
Item: Item 8
Chunk 265
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 flight credits, and annual membership fee payments are received up front in advance of performance under the contract and initially deferred as a liability. The balance classified as Deferred revenue, current includes prepaid flights and flight credits, and annual membership and initiation fees. Prepaid flights and flight credits are redeemable for flights at any time. The balance classified as Deferred revenue, non-current includes amounts to be recognized beyond 12 months following the balance sheet date.

97

Deferred revenue consists of the following (in thousands): December 31, 2024December 31, 2023Flights - prepaid$729,581 $686,413 Memberships - annual dues17,638 33,890 Memberships - initiation fees494 2,377 Flights - credits673 1,366 Other1,226 183 Deferred revenue - total $749,612 $724,229 The opening balance for Deferred revenue as of December 31, 2022 was $1.1 billion. Changes in deferred revenue for the year ended December 31, 2024 were as follows (in thousands):Deferred revenue as of December 31, 2023$724,229 Amounts deferred during the period804,749 Revenue recognized from amounts included in the deferred revenue beginning balance(422,676)Revenue from current period sales(356,690)Deferred revenue as of December 31, 2024$749,612 Revenue expected to be recognized in future periods for performance obligations that are unsatisfied, or partially unsatisfied, as of December 31, 2024 was as follows (in thousands):2025$494,552 2026127,512 2027127,548 Total$749,612 Costs to Obtain ContractCommissions are granted to certain employees and consultants separately for the initial sales of memberships, additional subsequent contract renewals, when members purchase Prepaid Blocks on their accounts or for charter flights. In addition, members are eligible to receive a credit if they refer a new customer who signs up for a membership in the Wheels Up program. Commissions were also granted for the execution of aircraft management agreements, additional subsequent contract renewals and performance over the contractual term. The cost of commissions and referral fees are capitalized as an asset on the consolidated balance sheets as these are incremental amounts directly related to attaining a contract with a member. Capitalized costs related to sales commissions and referral fees were $8.8 million, $8.1 million and $16