Loyalty Ventures (LYLTQ) 10-Q 24 Nov 21 2021 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2021	Nov. 19, 2021
Document and Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2021
Entity File Number	001-40776
Entity Registrant Name	Loyalty Ventures Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	87-1353472
Entity Address State Or Province	TX
Entity Address, Address Line One	c/o Alliance Data Systems Corporation
Entity Address, Address Line Two	7500 Dallas Parkway, Suite 700
Entity Address, City or Town	Plano
Entity Address, Postal Zip Code	75024
City Area Code	972
Local Phone Number	338-5170
Title of 12(b) Security	Common stock, par value $0.01 per share
Trading Symbol	LYLT
Security Exchange Name	NASDAQ
Entity Current Reporting Status	No
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		24,585,237
Entity Central Index Key	0001870997
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Amendment Flag	false

UNAUDITED CONDENSED COMBINED BA

UNAUDITED CONDENSED COMBINED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
ASSETS
Cash and cash equivalents	$ 198,865	$ 278,841
Accounts receivable, net, less allowance for doubtful accounts ($4.7 million and $4.0 million at September 30, 2021 and December 31, 2020, respectively)	290,652	270,559
Inventories	192,277	164,306
Redemption settlement assets, restricted	733,952	693,461
Other current assets	20,505	23,000
Total current assets	1,436,251	1,430,167
Property and equipment, net	83,720	97,916
Right of use assets - operating	103,060	113,870
Deferred tax asset, net	71,677	70,137
Intangible assets, net	3,580	5,097
Goodwill	709,006	735,898
Investment in unconsolidated subsidiary - related party		854
Other non-current assets	3,157	4,125
Total assets	2,410,451	2,458,064
LIABILITIES AND EQUITY
Accounts payable	74,584	74,818
Accrued expenses	49,612	67,056
Deferred revenue	924,295	898,475
Current operating lease liabilities	9,626	9,942
Other current liabilities	131,601	64,990
Total current liabilities	1,189,718	1,115,281
Deferred revenue	96,605	105,544
Long-term operating lease liabilities	106,675	117,648
Other liabilities	23,877	25,290
Total liabilities	1,416,875	1,363,763
Commitments and contingencies
Parent's net investment	1,042,072	1,093,920
Accumulated other comprehensive (loss) income	(48,496)	381
Total equity	993,576	1,094,301
Total liabilities and equity	$ 2,410,451	$ 2,458,064

UNAUDITED CONDENSED COMBINED _2

UNAUDITED CONDENSED COMBINED BALANCE SHEETS (Parentheticals) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
UNAUDITED CONDENSED COMBINED BALANCE SHEETS
Allowances for doubtful accounts	$ 4.7	$ 4

UNAUDITED CONDENSED COMBINED ST

UNAUDITED CONDENSED COMBINED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Total revenue	$ 169,257	$ 184,756	$ 496,716	$ 533,932
Operating expenses
Cost of operations (exclusive of depreciation and amortization disclosed separately below)	119,882	146,358	372,820	399,519
General and administrative	4,018	3,630	11,608	10,794
Depreciation and other amortization	8,665	7,735	26,237	20,690
Amortization of purchased intangibles	433	12,538	1,316	36,168
Total operating expenses	132,998	170,261	411,981	467,171
Operating income	36,259	14,495	84,735	66,761
Gain on sale of a business				(10,876)
Interest income, net	(136)	(167)	(318)	(516)
Income before income taxes and (income) loss from investment in unconsolidated subsidiary	36,395	14,662	85,053	78,153
Provision for income taxes	16,542	3,534	31,616	17,382
(Income) loss from investment in unconsolidated subsidiary - related party, net of tax	(4,108)	148	(4,067)	205
Net income	$ 23,961	$ 10,980	$ 57,504	$ 60,566
Net income per share - Basic (Note 3)	$ 0.97	$ 0.45	$ 2.34	$ 2.46
Net income per share - Diluted (Note 3)	$ 0.97	$ 0.45	$ 2.34	$ 2.46
Number of Basic Shares Outstanding (Note 3)	24,585	24,585	24,585	24,585
Number of Diluted Shares Outstanding (Note 3)	24,585	24,585	24,585	24,585
Redemption
Total revenue	$ 97,149	$ 113,073	$ 280,844	$ 318,620
Service
Total revenue	65,806	63,629	199,244	193,856
Other Revenue
Total revenue	$ 6,302	$ 8,054	$ 16,628	$ 21,456

UNAUDITED CONDENSED COMBINED _3

UNAUDITED CONDENSED COMBINED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
UNAUDITED CONDENSED COMBINED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 23,961	$ 10,980	$ 57,504	$ 60,566
Other comprehensive income (loss):
Unrealized (loss) gain on securities available-for-sale	(2,769)	4,386	(11,245)	15,913
Tax benefit			693
Unrealized (loss) gain on securities available-for-sale, net of tax	(2,769)	4,386	(10,552)	15,913
Unrealized gain (loss) on cash flow hedges	1,206	690	2,134	(1)
Tax expense	(298)	(212)	(454)	(41)
Unrealized gain (loss) on cash flow hedges, net of tax	908	478	1,680	(42)
Foreign currency translation adjustments	(21,064)	35,495	(40,005)	32,733
Other comprehensive (loss) income, net of tax	(22,925)	40,359	(48,877)	48,604
Total comprehensive income, net of tax	$ 1,036	$ 51,339	$ 8,627	$ 109,170

UNAUDITED CONDENSED COMBINED _4

UNAUDITED CONDENSED COMBINED STATEMENTS OF EQUITY $ in Thousands	USD ($)
Balance at Beginning at Dec. 31, 2019	$ 947,559
UNAUDITED CONDENSED COMBINED STATEMENTS OF EQUITY
Net income	60,566
Other comprehensive income (loss)	48,604
Change in Parent's net investment	(24,018)
Balance at Ending at Sep. 30, 2020	1,032,711
Balance at Beginning at Jun. 30, 2020	978,008
UNAUDITED CONDENSED COMBINED STATEMENTS OF EQUITY
Net income	10,980
Other comprehensive income (loss)	40,359
Change in Parent's net investment	3,364
Balance at Ending at Sep. 30, 2020	1,032,711
Balance at Beginning at Dec. 31, 2020	1,094,301
UNAUDITED CONDENSED COMBINED STATEMENTS OF EQUITY
Net income	57,504
Other comprehensive income (loss)	(48,877)
Change in Parent's net investment	(109,352)
Balance at Ending at Sep. 30, 2021	993,576
Balance at Beginning at Jun. 30, 2021	987,015
UNAUDITED CONDENSED COMBINED STATEMENTS OF EQUITY
Net income	23,961
Other comprehensive income (loss)	(22,925)
Change in Parent's net investment	5,525
Balance at Ending at Sep. 30, 2021	$ 993,576

UNAUDITED CONDENSED COMBINED _5

UNAUDITED CONDENSED COMBINED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 57,504	$ 60,566
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	27,553	56,858
Deferred income taxes	(3,594)	3,610
Non-cash stock compensation	6,322	5,184
Gain on sale of a business		(10,876)
Gain on sale of investment in unconsolidated subsidiary - related party	(4,110)
Change in other operating assets and liabilities, net of sale of business:
Change in deferred revenue	12,775	37,648
Change in accounts receivable	(14,201)	29,546
Change in accounts payable and accrued expenses	(12,496)	(45,718)
Change in other assets	(28,982)	23,961
Change in other liabilities	62,415	(34,414)
Other	10,539	(4,686)
Net cash provided by operating activities	113,725	121,679
CASH FLOWS FROM INVESTING ACTIVITIES:
Change in redemption settlement assets, restricted	(47,312)	(31,277)
Capital expenditures	(13,137)	(18,605)
Investments in unconsolidated subsidiary - related party		(736)
Distributions from investment in unconsolidated subsidiary - related party	795
Sale of investment in unconsolidated subsidiary - related party	4,055
Net cash used in investing activities	(55,599)	(50,618)
CASH FLOWS FROM FINANCING ACTIVITIES:
Dividends paid to Parent	(120,000)
Net transfers to Parent	(9,278)	(1,511)
Net cash used in financing activities	(129,278)	(1,511)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(4,000)	3,604
Change in cash, cash equivalents and restricted cash	(75,152)	73,154
Cash, cash equivalents and restricted cash at beginning of year	337,525	175,132
Cash, cash equivalents and restricted cash at end of year	262,373	248,286
SUPPLEMENTAL CASH FLOW INFORMATION:
Interest paid	200	209
Income taxes paid, net	$ 30,781	$ 61,684

DESCRIPTION OF BUSINESS, SPINOF

DESCRIPTION OF BUSINESS, SPINOFF AND BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2021
DESCRIPTION OF BUSINESS, SPINOFF AND BASIS OF PRESENTATION
DESCRIPTION OF BUSINESS, SPINOFF AND BASIS OF PRESENTATION	​ 1. DESCRIPTION OF BUSINESS, SPINOFF AND BASIS OF PRESENTATION Description of the Business Loyalty Ventures Inc. (the “Company” or “Loyalty Ventures”) provides coalition and campaign-based loyalty solutions through the Canadian AIR MILES® Reward Program and BrandLoyalty Group B.V. (“BrandLoyalty”). The AIR MILES Reward Program is a full service outsourced coalition loyalty program for its sponsors who pay a fee per AIR MILES reward mile issued, in return for which the AIR MILES Reward Program provides all marketing, customer service, rewards and redemption management. BrandLoyalty designs, implements, conducts and evaluates innovative and tailor-made loyalty programs for high frequency retailers worldwide. These loyalty programs are designed to generate immediate changes in consumer behavior and are offered across Europe and Asia, as well as around the world. The business represents the LoyaltyOne reportable segment previously owned by Alliance Data Systems Corporation (“ADS” or “Parent”) that was spun off into Loyalty Ventures Inc. on November 5, 2021. Spinoff of the LoyaltyOne Segment On October 13, 2021, the Board of Directors of ADS approved the previously announced separation (the “Separation”) of its LoyaltyOne segment, into an independent, publicly traded company, Loyalty Ventures Inc. The Separation was completed on November 5, 2021 through the pro rata distribution of 81% of the outstanding shares of Loyalty Ventures to holders of ADS common stock at the close of business on the record date of October 27, 2021, with ADS retaining the remaining 19% of the outstanding shares of Loyalty Ventures. ADS stockholders of record at the close of business on October 27, 2021 received one share of Loyalty Ventures common stock for every two and one In connection with the Separation, Loyalty Ventures entered into several agreements with ADS, including on November 3, 2021 the Separation and Distribution Agreement and on November 5, 2021 the remaining agreements described below, that, among other things, effect the Separation and provide a framework for its relationship with ADS after the Separation: • Separation and Distribution Agreement. Governs the overall terms of the Separation. Generally, the Separation and Distribution Agreement includes ADS’ and Loyalty Ventures’ agreements relating to the restructuring steps taken to complete the Separation, including the assets and rights transferred, liabilities assumed and related matters. The Separation and Distribution Agreement provides for ADS and Loyalty Ventures to transfer specified assets between the companies that operate the LoyaltyOne segment after the Distribution, on the one hand, and ADS’ remaining businesses, on the other hand. • Tax Matters Agreement. Governs ADS’ and Loyalty Ventures’ respective rights, responsibilities and obligations with respect to taxes, including taxes arising in the ordinary course of business, and taxes, if any, incurred as a result of the failure of the Distribution (and certain related transactions) to qualify for tax-free treatment for U.S. federal income tax purposes. The Tax Matters Agreement also sets forth the respective obligations of the parties with respect to the filing of tax returns, the administration of tax contests and assistance and cooperation on tax matters. Under the Tax Matters Agreement, ADS generally is responsible for all of the pre-Separation taxes of Loyalty Ventures and its subsidiaries (“Loyalty Ventures Group”) and is entitled to all the Loyalty Ventures Group’s pre-Separation refunds, and Loyalty Ventures is generally responsible for all post-Separation taxes with respect to the Loyalty Ventures Group. • Transition Services Agreement. Sets forth the terms on which each of Loyalty Ventures and ADS will provide certain historically shared services to the other, on a transitional basis. Transition services will include various corporate, administrative and information technology services. Both parties are obligated, subject to certain customary exceptions, to provide such services in substantially the same manner as such services have been provided during the 12-month period prior to the distribution. • Employee Matters Agreement. Governs each company’s respective compensation and benefit obligations with respect to current and former employees, directors and consultants. The Employee Matters Agreement sets forth general principles relating to employee matters in connection with the Separation, such as the assignment of employees, the assumption and retention of liabilities and related assets, expense reimbursements, workers’ compensation, leaves of absence, the provision of comparable benefits, employee service credit, the sharing of employee information and duplication or acceleration of benefits. • Registration Rights Agreement. Provides ADS with certain customary demand registration, shelf takedown and piggyback registration rights with respect to its shares of Loyalty Ventures’ common stock, subject to certain customary limitations. Basis of Presentation The Company has historically operated as part of ADS and not as a standalone company. The unaudited condensed combined financial statements have been derived from ADS’ historical accounting records and are presented on a carve-out basis. All revenues and expenses as well as assets and liabilities directly associated with the business activity of the Company are included in the unaudited condensed combined financial statements. The unaudited condensed combined financial statements also include allocations of certain general and administrative expenses from ADS. However, amounts recognized by the Company are not necessarily representative of the amounts that would have been reflected in the unaudited condensed combined financial statements had the Company operated independently of ADS. Related-party allocations are discussed further in Note 18, “Related Party Transactions.” The cash and cash equivalents held by ADS at the corporate level are not specifically identifiable and therefore have not been reflected in the combined balance sheets. ADS’ third-party long-term debt and the related interest expense have not been allocated for any of the periods presented as the Company was not a legal obligor of such debt. Parent’s net investment represents ADS’ interest in the recorded net assets of the Company. All significant transactions between the Company and Parent have been included in the accompanying unaudited condensed combined financial statements. Transactions with Parent as contributions to the carve-out entity or distributions from the carve-out entity are reflected in the accompanying unaudited condensed combined statements of equity as “Changes in Parent’s net investment” and in the accompanying unaudited condensed combined balance sheets within “Parent’s net investment.” All significant intercompany accounts and transactions between the businesses comprising the Company have been eliminated in the accompanying unaudited condensed combined financial statements. The Company’s unaudited condensed combined financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company’s unaudited condensed combined financial statements and accompanying notes are presented in U.S. Dollars (“USD”), the Company’s reporting currency. The unaudited condensed combined financial statements included herein reflect all adjustments (consisting of normal, recurring adjustments) which are, in the opinion of management, necessary to state fairly the results for the interim periods presented. The results of operations for the interim periods presented are not necessarily indicative of the operating results to be expected for any subsequent interim period or for the fiscal year. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. However, the Company believes that the disclosures are adequate to make the information presented not misleading. These unaudited condensed combined financial statements should be read in conjunction with the combined financial statements and the notes thereto for the year ended December 31, 2020 included in our registration statement on Form 10, filed with the Securities and Exchange Commission (“SEC”) on October 13, 2021. Recently Issued Accounting Standards In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, “Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” This ASU provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this ASU apply only to contracts and hedging relationships that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued due to reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022. This ASU is elective and is effective upon issuance for all entities. The Company is evaluating the impact that adoption of ASU 2020-04 will have on its combined financial statements. Recently Adopted Accounting Standards In December 2019, the FASB issued ASU 2019-12, “Simplifying the Accounting for Income Taxes.” ASU 2019-12 eliminated certain exceptions within ASC 740, “Income Taxes,” and clarified certain aspects of ASC 740 to promote consistency among reporting entities. Most amendments within the standard were required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. The Company’s adoption of this standard on January 1, 2021 did not have a material impact on its unaudited condensed combined financial statements.

REVENUE

REVENUE	9 Months Ended
	Sep. 30, 2021
REVENUE
REVENUE	2. REVENUE The Company’s products and services are reported under two segments—AIR MILES Reward Program and BrandLoyalty, as shown below. The following tables present revenue disaggregated by major source, as well as geographic region based on the location of the subsidiary that generally correlates with the location of the customer: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ AIR MILES ​ ​ ​ ​ Three Months Ended September 30, 2021 ​ Reward Program ​ BrandLoyalty ​ Total ​ ​ (in thousands) Disaggregation of Revenue by Major Source: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Coalition loyalty program ​ $ 68,580 ​ $ — ​ $ 68,580 Campaign-based loyalty solutions ​ — ​ 95,799 ​ 95,799 Other ​ 10 ​ 1,530 ​ 1,540 Revenue from contracts with customers ​ $ 68,590 ​ $ 97,329 ​ $ 165,919 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Investment income ​ 3,338 ​ ​ — ​ 3,338 Total ​ $ 71,928 ​ $ 97,329 ​ $ 169,257 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ AIR MILES ​ ​ ​ ​ Three Months Ended September 30, 2020 ​ Reward Program ​ BrandLoyalty ​ Total ​ ​ (in thousands) Disaggregation of Revenue by Major Source: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Coalition loyalty program ​ $ 62,938 ​ $ — ​ $ 62,938 Campaign-based loyalty solutions ​ — ​ 117,435 ​ 117,435 Other ​ (17) ​ 1,123 ​ 1,106 Revenue from contracts with customers ​ $ 62,921 ​ $ 118,558 ​ $ 181,479 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Investment income ​ 3,277 ​ — ​ 3,277 Total ​ $ 66,198 ​ $ 118,558 ​ $ 184,756 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ AIR MILES ​ ​ ​ ​ Nine Months Ended September 30, 2021 ​ Reward Program ​ BrandLoyalty ​ Total ​ ​ (in thousands) Disaggregation of Revenue by Major Source: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Coalition loyalty program ​ $ 203,870 ​ $ — ​ $ 203,870 Campaign-based loyalty solutions ​ — ​ 278,726 ​ 278,726 Other ​ 12 ​ 3,867 ​ 3,879 Revenue from contracts with customers ​ $ 203,882 ​ $ 282,593 ​ $ 486,475 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Investment income ​ 10,241 ​ — ​ 10,241 Total ​ $ 214,123 ​ $ 282,593 ​ $ 496,716 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ AIR MILES ​ ​ ​ ​ Nine Months Ended September 30, 2020 ​ Reward Program ​ BrandLoyalty ​ Total ​ ​ (in thousands) Disaggregation of Revenue by Major Source: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Coalition loyalty program ​ $ 195,870 ​ $ — ​ $ 195,870 Campaign-based loyalty solutions ​ — ​ 322,504 ​ 322,504 Other ​ 1,903 (1) 4,077 ​ 5,980 Revenue from contracts with customers ​ $ 197,773 ​ $ 326,581 ​ $ 524,354 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Investment income ​ 9,578 ​ — ​ 9,578 Total ​ $ 207,351 ​ $ 326,581 ​ $ 533,932 (1) Includes revenues from Precima®, a provider of retail strategy and customer data applications and analytics, which was sold by the Parent on January 10, 2020, which comprised $1.9 million for the nine months ended September 30, 2020. See Note 4, “Dispositions,” for more information. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ AIR MILES ​ ​ ​ ​ Three Months Ended September 30, 2021 ​ Reward Program ​ BrandLoyalty ​ Total ​ ​ (in thousands) Disaggregation of Revenue by Geographic Region: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ United States ​ $ — ​ $ 95 ​ $ 95 Canada ​ 71,928 ​ 3,894 ​ 75,822 Europe, Middle East and Africa ​ — ​ 68,168 ​ 68,168 Asia Pacific ​ — ​ 22,967 ​ 22,967 Other ​ — ​ 2,205 ​ 2,205 Total ​ $ 71,928 ​ $ 97,329 ​ $ 169,257 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ AIR MILES ​ ​ ​ ​ Three Months Ended September 30, 2020 ​ Reward Program ​ BrandLoyalty ​ Total ​ ​ (in thousands) Disaggregation of Revenue by Geographic Region: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ United States ​ $ — ​ $ 3,316 ​ $ 3,316 Canada ​ 66,198 ​ 4,132 ​ 70,330 Europe, Middle East and Africa ​ — ​ 76,876 ​ 76,876 Asia Pacific ​ — ​ 12,549 ​ 12,549 Other ​ — ​ 21,685 ​ 21,685 Total ​ $ 66,198 ​ $ 118,558 ​ $ 184,756 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ AIR MILES ​ ​ ​ ​ Nine Months Ended September 30, 2021 ​ Reward Program ​ BrandLoyalty ​ Total ​ ​ (in thousands) Disaggregation of Revenue by Geographic Region: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ United States ​ $ — ​ $ 2,637 ​ $ 2,637 Canada ​ 214,123 ​ 15,163 ​ 229,286 Europe, Middle East and Africa ​ — ​ 200,022 ​ 200,022 Asia Pacific ​ — ​ 57,690 ​ 57,690 Other ​ — ​ 7,081 ​ 7,081 Total ​ $ 214,123 ​ $ 282,593 ​ $ 496,716 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ AIR MILES ​ ​ ​ ​ Nine Months Ended September 30, 2020 ​ Reward Program ​ BrandLoyalty ​ Total ​ ​ (in thousands) Disaggregation of Revenue by Geographic Region: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ United States ​ $ 1,028 ​ $ 8,562 ​ $ 9,590 Canada ​ 206,055 ​ 8,065 ​ 214,120 Europe, Middle East and Africa ​ 268 ​ 195,884 ​ 196,152 Asia Pacific ​ — ​ 62,960 ​ 62,960 Other ​ — ​ 51,110 ​ 51,110 Total ​ $ 207,351 ​ $ 326,581 ​ $ 533,932 ​ Contract Liabilities The Company records a contract liability when cash payments are received in advance of its performance, which applies to the service and redemption of an AIR MILES reward mile and the reward products for its campaign-based loyalty solutions. A reconciliation of contract liabilities for the AIR MILES Reward Program is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Deferred Revenue ​ Service Redemption Total ​ ​ (in thousands) Balance at January 1, 2021 ​ $ 247,186 ​ $ 756,833 ​ $ 1,004,019 Cash proceeds ​ 128,988 ​ ​ 206,715 ​ 335,703 Revenue recognized (1) ​ (148,373) ​ ​ (175,696) ​ (324,069) Other ​ — ​ ​ 1,182 ​ 1,182 Effects of foreign currency translation ​ 1,290 ​ ​ 2,775 ​ 4,065 Balance at September 30, 2021 ​ $ 229,091 ​ $ 791,809 ​ $ 1,020,900 Amounts recognized in the combined balance sheets: ​ ​ ​ Deferred revenue (current) ​ $ 132,486 ​ $ 791,809 ​ $ 924,295 Deferred revenue (non-current) ​ $ 96,605 ​ $ — ​ $ 96,605 (1) Reported on a gross basis herein. The deferred redemption obligation associated with the AIR MILES Reward Program is effectively due on demand from the collector base, thus the timing of revenue recognition is based on the redemption by the collector. Service revenue is amortized over the expected life of a mile, with the deferred revenue balance expected to be recognized into revenue in the amount of $44.5 million in 2021 2022 2023 2024 The contract liabilities for BrandLoyalty’s campaign-based loyalty solutions are recognized in other current liabilities in the Company’s unaudited condensed combined balance sheets. The beginning balance as of January 1, 2021 was $66.9 million and the closing balance as of September 30, 2021 was $107.2 million, with the change due to cash payments received in advance of program performance, offset in part by revenue recognized of approximately $226.9 million during the nine months ended September 30, 2021.

EARNINGS PER SHARE

EARNINGS PER SHARE	9 Months Ended
	Sep. 30, 2020
EARNINGS PER SHARE
EARNINGS PER SHARE	3. EARNINGS PER SHARE On November 5, 2021, the date of the Separation, 81% of the outstanding shares of Loyalty Ventures were distributed pro rata based on the outstanding shares of ADS common stock at the close of business on the record date of October 27, 2021, with ADS retaining the remaining 19% of the outstanding shares of Loyalty Ventures. ADS stockholders of record that did not sell their rights to receive Loyalty Ventures stock before the close of business on November 5, 2021 received one The following table sets forth the computation of basic and diluted earnings per share of common stock: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, ​ September 30, ​ 2021 2020 2021 2020 ​ (in thousands, except per share amounts) Numerator: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ​ $ 23,961 ​ $ 10,980 ​ $ 57,504 ​ $ 60,566 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Denominator: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of Basic and Diluted Shares Outstanding ​ ​ 24,585 ​ ​ 24,585 ​ ​ 24,585 ​ ​ 24,585 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income per share - Basic and Diluted ​ $ 0.97 ​ $ 0.45 ​ $ 2.34 ​ $ 2.46 ​

DISPOSITIONS

DISPOSITIONS	9 Months Ended
	Sep. 30, 2021
DISPOSITIONS
DISPOSITIONS	4. DISPOSITIONS On January 10, 2020, the Parent sold Precima, a provider of retail strategy and customer data applications and analytics, to Nielsen Holdings plc for total consideration to the Parent of $43.8 million. The purchase and sale agreement provided for contingent consideration based upon the occurrence of specified events and performance of the business, of which $5.0 million was achieved in 2020. The assets and liabilities of Precima were included in the Company’s AIR MILES Reward Program segment. As a result of the transaction, the Company recorded a pre-tax gain of $10.9 million in January 2020. The Company incurred $3.1 million in transaction costs associated with the disposition.

INVENTORIES

INVENTORIES	9 Months Ended
	Sep. 30, 2021
INVENTORIES
INVENTORIES.	5. INVENTORIES Inventories of $192.3 million and $164.3 million at September 30, 2021 and December 31, 2020, respectively, primarily consist of finished goods to be utilized as rewards in the Company’s loyalty programs. Inventories are stated at the lower of cost and net realizable value and valued primarily on a first-in-first-out basis. The Company records valuation adjustments to its inventories if the cost of inventory exceeds the amount it expects to realize from the ultimate sale or disposal of the inventory. These estimates are based on management’s judgment regarding future market conditions and an analysis of historical experience.

REDEMPTION SETTLEMENT ASSETS, R

REDEMPTION SETTLEMENT ASSETS, RESTRICTED	9 Months Ended
	Sep. 30, 2021
REDEMPTION SETTLEMENT ASSETS, RESTRICTED.
REDEMPTION SETTLEMENT ASSETS, RESTRICTED	6. REDEMPTION SETTLEMENT ASSETS, RESTRICTED Redemption settlement assets consist of restricted cash, mutual funds, and securities available-for-sale and are designated for settling redemptions by collectors of the AIR MILES Reward Program in Canada under certain contractual relationships with sponsors of the AIR MILES Reward Program. The principal components of redemption settlement assets, which are carried at fair value, are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ ​ 2021 ​ 2020 ​ Fair Value Fair Value ​ ​ (in thousands) Restricted cash ​ $ 58,196 ​ $ 55,427 Mutual funds ​ 26,220 ​ 26,850 Corporate bonds ​ 649,536 ​ 611,184 Total ​ $ 733,952 ​ $ 693,461 ​ The following table shows the amortized cost, unrealized gains and losses, and fair value of securities available-for-sale as of September 30, 2021 and December 31, 2020, respectively: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2021 ​ December 31, 2020 ​ ​ Amortized ​ Unrealized ​ Unrealized ​ ​ ​ ​ Amortized ​ Unrealized ​ Unrealized ​ ​ ​ ​ Cost Gains Losses Fair Value Cost Gains Losses Fair Value ​ ​ (in thousands) Corporate bonds ​ $ 641,820 ​ $ 10,257 ​ $ (2,541) ​ $ 649,536 ​ $ 592,247 ​ $ 19,110 ​ $ (173) ​ $ 611,184 Total ​ $ 641,820 ​ $ 10,257 ​ $ (2,541) ​ $ 649,536 ​ $ 592,247 ​ $ 19,110 ​ $ (173) ​ $ 611,184 ​ The following tables show the unrealized losses and fair value for those investments that were in an unrealized loss position as of September 30, 2021 and December 31, 2020, respectively, aggregated by investment category and the length of time that individual securities have been in a continuous loss position: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2021 ​ ​ Less than 12 months ​ 12 Months or Greater ​ Total ​ ​ ​ ​ ​ Unrealized ​ ​ ​ ​ Unrealized ​ ​ ​ ​ Unrealized ​ Fair Value Losses Fair Value Losses Fair Value Losses ​ ​ (in thousands) Corporate bonds ​ $ 178,215 ​ $ (2,367) ​ $ 14,224 ​ $ (174) ​ $ 192,439 ​ $ (2,541) Total ​ $ 178,215 ​ $ (2,367) ​ $ 14,224 ​ $ (174) ​ $ 192,439 ​ $ (2,541) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2020 ​ ​ Less than 12 months ​ 12 Months or Greater ​ Total ​ ​ ​ ​ ​ Unrealized ​ ​ ​ ​ Unrealized ​ ​ ​ ​ Unrealized ​ ​ Fair Value ​ Losses ​ Fair Value ​ Losses ​ Fair Value ​ Losses ​ ​ (in thousands) Corporate bonds $ 46,190 $ (86) $ 10,316 $ (87) $ 56,506 $ (173) Total ​ $ 46,190 ​ $ (86) ​ $ 10,316 ​ $ (87) ​ $ 56,506 ​ $ (173) ​ The amortized cost and estimated fair value of the securities available-for-sale at September 30, 2021 by contractual maturity are as follows: ​ ​ ​ ​ ​ ​ ​ ​ Amortized Estimated ​ ​ Cost ​ Fair Value ​ ​ (in thousands) Due in one year or less ​ $ 131,884 ​ $ 132,984 Due after one year through five years ​ 505,989 ​ 512,567 Due after five years through ten years ​ 3,947 ​ 3,985 Total ​ $ 641,820 ​ $ 649,536 ​ Market values were determined for each individual security in the investment portfolio. The Company recorded losses associated with the change in fair value of mutual funds of $0.6 million for the nine months ended September 30, 2021. Losses associated with the change in fair value of mutual funds for the three months ended September 30, 2021 were de minimis. The Company recorded gains associated with the change in fair value of mutual funds of $0.3 million and $1.0 million for the three and nine months ended September 30, 2020, respectively. For available-for-sale debt securities in which fair value is less than cost, ASC 326 requires that credit-related impairment, if any, is recognized through an allowance for credit losses and adjusted each period for changes in credit risk. The Company typically invests in highly-rated securities with low probabilities of default and has the intent and ability to hold the investments until maturity, and the Company performs an assessment each period for credit-related impairment. As of September 30, 2021, the Company does not consider its investments to be impaired. Losses from the sale of investment securities were $0.2 million for the nine months ended September 30, 2021. There were no realized gains or losses from the sale of investment securities for the three months ended September 30, 2021 and the three and nine months ended September 30, 2020.

LEASES

LEASES	9 Months Ended
	Sep. 30, 2021
LEASES
LEASES	7. LEASES The Company has operating leases for general office properties, warehouses, data centers, customer care centers, automobiles and certain equipment. As of September 30, 2021, the Company’s leases have remaining lease terms of less than 1 year to 12 years, some of which may include renewal options. For leases in which the implicit rate is not readily determinable, the Company uses its incremental borrowing rate as of the lease commencement date to determine the present value of the lease payments. The incremental borrowing rate is based on the Company’s specific rate of interest to borrow on a collateralized basis, over a similar term and in a similar economic environment as the lease. Leases with an initial term of 12 months or less are not recognized on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. Additionally, the Company accounts for lease and nonlease components as a single lease component for its identified asset classes. The components of lease expense were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, ​ September 30, ​ 2021 2020 2021 2020 ​ ​ (in thousands) Operating lease cost ​ $ 3,923 ​ $ 3,898 ​ $ 11,929 ​ $ 11,624 Short-term lease cost ​ 84 ​ 107 ​ 255 ​ 354 Variable lease cost ​ 922 ​ 949 ​ 3,134 ​ 3,143 Total ​ $ 4,929 ​ $ 4,954 ​ $ 15,318 ​ $ 15,121 ​ Other information related to leases was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ September 30, ​ 2021 2020 Weighted-average remaining lease term (in years): ​ Operating leases 10.9 11.6 ​ Weighted-average discount rate: ​ Operating leases 4.7 % 4.6 % ​ Supplemental cash flow information related to leases was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, ​ September 30, ​ 2021 2020 2021 2020 ​ ​ (in thousands) Cash paid for amounts included in the measurement of lease liabilities: ​ ​ ​ ​ ​ Operating cash flows from operating leases ​ $ 4,062 ​ $ 5,441 ​ $ 13,871 ​ $ 13,527 Right of use assets obtained in exchange for lease obligations: ​ ​ ​ ​ Operating leases ​ $ 16 ​ $ 462 ​ $ 200 ​ $ 3,021 ​ Maturities of the lease liabilities as of September 30, 2021 were as follows: ​ ​ ​ ​ ​ ​ ​ Operating Year Leases ​ ​ (in thousands) 2021 (excluding the nine months ended September 30, 2021) ​ $ 2,798 2022 ​ 15,782 2023 ​ 14,375 2024 ​ 13,472 2025 ​ 12,935 Thereafter ​ 90,545 Total undiscounted lease liabilities ​ 149,907 Less: Amount representing interest ​ (33,606) Total present value of minimum lease payments ​ $ 116,301 ​ ​ ​ ​ Amounts recognized in the September 30, 2021 combined balance sheet: ​ Current operating lease liabilities ​ $ 9,626 Long-term operating lease liabilities ​ 106,675 Total ​ $ 116,301 ​

INTANGIBLE ASSETS AND GOODWILL

INTANGIBLE ASSETS AND GOODWILL	9 Months Ended
	Sep. 30, 2021
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL	8. INTANGIBLE ASSETS AND GOODWILL Intangible Assets Intangible assets consist of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2021 ​ ​ ​ Gross ​ Accumulated ​ ​ ​ ​ ​ Assets Amortization Net Amortization Life and Method ​ ​ (in thousands) ​ Tradenames ​ $ 32,895 ​ $ (29,445) ​ $ 3,450 8‑15 years—straight line Collector database ​ 55,205 ​ (55,075) ​ 130 5 years—straight line Total intangible assets ​ $ 88,100 ​ $ (84,520) ​ $ 3,580 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2020 ​ ​ ​ Gross ​ Accumulated ​ ​ ​ ​ ​ Assets Amortization Net Amortization Life and Method ​ ​ (in thousands) ​ Customer contracts $ 354,242 $ (354,242) $ — ​ 7 years—straight line Tradenames ​ ​ 34,691 ​ ​ (30,112) ​ ​ 4,579 ​ 8‑15 years—straight line Collector database ​ ​ 54,973 ​ ​ (54,455) ​ ​ 518 ​ 5 years—straight line Total intangible assets $ 443,906 ​ $ (438,809) ​ $ 5,097 ​ ​ ​ The estimated amortization expense related to intangible assets for the next five years and thereafter is as follows: ​ ​ ​ ​ ​ ​ ​ For the Years Ending ​ December 31, ​ ​ (in thousands) 2021 (excluding the nine months ended September 30, 2021) ​ $ 427 2022 ​ 1,189 2023 ​ 1,189 2024 ​ 610 2025 ​ 31 Thereafter ​ 134 ​ Goodwill The changes in the carrying amount of goodwill are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ AIR MILES ​ ​ ​ ​ ​ ​ ​ Reward Program BrandLoyalty Total ​ (in thousands) Balance at January 1, 2021 ​ $ 193,276 ​ $ 542,622 ​ $ 735,898 Effects of foreign currency translation ​ 815 ​ (27,707) ​ (26,892) Balance at September 30, 2021 ​ $ 194,091 ​ $ 514,915 ​ $ 709,006 ​ The Parent tests goodwill for impairment annually, as of July 1, or when events and circumstances change that would indicate the carrying value may not be recoverable. As of September 30, 2021, the Company does not believe it is more likely than not that the fair value of any reporting unit is less than its carrying amount. However, with the COVID-19 pandemic and current uncertainty in the macroeconomic environment, future deterioration in the economy could adversely impact the Company’s reporting units and result in a goodwill impairment.

INVESTMENT IN UNCONSOLIDATED SU

INVESTMENT IN UNCONSOLIDATED SUBSIDIARY - RELATED PARTY	9 Months Ended
	Sep. 30, 2021
INVESTMENT IN UNCONSOLIDATED SUBSIDIARY - RELATED PARTY
INVESTMENT IN UNCONSOLIDATED SUBSIDIARY - RELATED PARTY	9. INVESTMENT IN UNCONSOLIDATED SUBSIDIARY – RELATED PARTY At December 31, 2020, the Company owned a 99.9% interest in Comenity Canada L.P., a limited partnership, which is a consolidated subsidiary of the Parent and is accounted for using the equity method of accounting, as the Company exercises significant influence but does not control the entity. The investment is in the AIR MILES Reward Program segment. At December 31, 2020, the Company’s investment in Comenity Canada L.P. was $0.9 million. For the nine months ended September 30, 2020, the Company made capital contributions to Comenity Canada L.P. of $0.7 million. Under the equity method, the Company’s share of its investee’s earnings or loss is recognized in the combined statements of income. The Company recognized income from investment in unconsolidated related party subsidiary of $4.1 million for each of the three and nine months ended September 30, 2021, respectively. Losses from investment in unconsolidated related party subsidiary were de minimis for the three and nine months ended September 30, 2020, respectively. In March 2021, the Company received a partnership distribution from Comenity Canada L.P. of $0.8 million, and the Company’s ownership interest declined from 99.9% to 98.0%. In August 2021, the Company’s investment in Comenity Canada L.P. was sold to an affiliate of ADS for $4.1 million and a gain on sale of investment in unconsolidated related party subsidiary of $4.1 million was recorded in (income) loss from investment in unconsolidated subsidiary within the Company’s unaudited condensed combined statements of income.

DEBT

DEBT	9 Months Ended
	Sep. 30, 2021
DEBT
DEBT	10. DEBT BrandLoyalty Credit Agreement In the first quarter of 2021, BrandLoyalty and certain of its subsidiaries, as borrowers and guarantors, amended its credit agreement to extend the maturity date by one year from April 3, 2023 to April 3, 2024. As of September 30, 2021 and December 31, 2020, there were no amounts outstanding under the BrandLoyalty Credit Agreement. In November 2021, the BrandLoyalty Credit Agreement was terminated in connection with the execution of the Company’s senior secured credit agreement, as described more fully below. Credit Agreement On November 3, 2021, the Company entered into a senior secured credit agreement (the “Credit Agreement”) with certain subsidiaries as additional borrowers and certain other subsidiaries as guarantors, Bank of America, N.A., as administrative agent and collateral agent, and the additional lenders party thereto. The Credit Agreement provides for a $175.0 million term loan A facility, a $500.0 million term loan B facility, which was issued at 98.0% of the aggregate principal amount, and a revolving credit facility in the maximum amount of $150.0 million. The term loan A and revolving credit facility will mature November 3, 2026. The term loan B will mature November 3, 2027. The proceeds of the term loans were used to finance a portion of the $750.0 million distribution by the Company to ADS in connection with the Separation. The outstanding U.S. Dollar borrowings under the term loan A bear interest at a rate elected by the relevant borrower that is based on (i) the Base Rate, subject to a floor of 1.00% per annum, plus an applicable margin that ranges from 2.00% per annum to 2.75% per annum depending on the Consolidated Total Leverage Ratio or (ii) the Eurocurrency Rate, subject to a floor of 0.00% per annum, plus an applicable margin that ranges from 3.00% per annum to 3.75% per annum depending on the Consolidated Total Leverage Ratio. The outstanding U.S. Dollar borrowings under the term loan B bear interest at a rate elected by the relevant borrower that is based on (i) the Base Rate, subject to a floor of 1.50% per annum, plus an applicable margin of 3.50% per annum or (ii) the Eurocurrency Rate, subject to a floor of 0.50% per annum, plus an applicable margin of 4.50% per annum. The Company is obligated to pay a commitment fee quarterly, which ranges from 0.40% to 0.50% per annum of the unused portion of the aggregate revolving commitment, which fee is also dependent on the Consolidated Total Leverage Ratio, as such terms are defined in the Credit Agreement. The Company will be required to make quarterly principal amortization payments in equal installments in an aggregate amount of 7.5% per annum of the initial aggregate principal amount of each of the term loan A and term loan B. Commencing with the fiscal year ending December 31, 2022, the Credit Agreement requires, on an annual basis, the prepayment of the term loan B with either 0% , 25% or 50% of Excess Cash Flow, depending on the Consolidated Secured Leverage Ratio, as defined in the Credit Agreement. The Credit Agreement contains customary representations and warranties and affirmative and negative covenants. These covenants, among other things, limit additional indebtedness, additional liens, sales of assets, mergers and consolidations, distributions and other restricted payments, and transactions with affiliates.

DERIVATIVE INSTRUMENTS

DERIVATIVE INSTRUMENTS	9 Months Ended
	Sep. 30, 2021
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS.	11. DERIVATIVE INSTRUMENTS The Company uses derivatives to manage risks associated with certain assets and liabilities arising from the potential adverse impact of fluctuations in foreign currency exchange rates. Certain derivatives used to manage the Company’s exposure to foreign currency exchange rate movements are not designated as hedges and do not qualify for hedge accounting. The fair value of the Company’s derivative instruments as of September 30, 2021 was $1.9 million included in other current assets and $0.8 million included in other current liabilities in the Company’s unaudited condensed combined balance sheets. The fair value of the Company’s derivative instruments as of December 31, 2020 was $0.4 million included in other current assets and $1.5 million included in other current liabilities in the Company’s unaudited condensed combined balance sheets.

SHARE-BASED PAYMENTS

SHARE-BASED PAYMENTS	9 Months Ended
	Sep. 30, 2021
SHARE-BASED PAYMENTS
SHARE-BASED PAYMENTS	12. SHARE-BASED PAYMENTS Prior to the Separation, certain employees participated in share-based compensation plans of ADS. Under these plans, shares are reserved for grants of nonqualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units, performance share awards, cash incentive awards, deferred stock units, and other stock-based and cash-based awards to selected officers, employees, non-employee directors and consultants performing services for ADS or its affiliates. Terms of all awards are determined by ADS board of directors or the compensation committee of ADS board of directors or its designee at the time of award. During the nine months ended September 30, 2021, ADS awarded both service-based and performance-based restricted stock units. For the service-based awards, the fair value of the restricted stock units is estimated using ADS closing share price on the date of grant and typically vest ratably over a three-year period. The performance-based awards contain pre-defined vesting criteria that permit a range from 0% to 170% to be earned, subject to a market-based condition. The fair market value of these awards is $92.62 and was estimated utilizing Monte Carlo simulations of ADS’ stock price correlation, expected volatility and risk-free rate over a three-year time horizon matching the performance period. If the performance targets are met, the restrictions will lapse with respect to the entire award on February 16, 2024, provided that the participant is employed by ADS on the vesting date. In connection with the Separation and pursuant to the Employee Matters Agreement with ADS, service-based awards granted to Loyalty Ventures employees more than a year prior to the Separation were accelerated and vested on October 22, 2021. Service-based awards and performance-based awards granted to Loyalty Ventures employees less than one year prior to the Separation were forfeited at the time of the Separation and will be replaced with a combination of Loyalty Ventures service-based restricted stock awards and long-term cash incentive awards, to be determined by the Loyalty Ventures Compensation Committee, and a cash payment to be paid by ADS. Stock-based compensation expense recognized in the Company’s unaudited condensed combined statements of income for the three and nine months ended September 30, 2021 and 2020 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, ​ September 30, ​ 2021 2020 2021 2020 ​ ​ (in thousands) Cost of operations ​ $ 1,725 ​ $ 1,482 ​ $ 5,009 ​ $ 3,993 General and administrative ​ 418 ​ 344 ​ 1,313 ​ 1,191 Total ​ $ 2,143 ​ $ 1,826 ​ $ 6,322 ​ $ 5,184 ​

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	9 Months Ended
	Sep. 30, 2021
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	13. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The changes in each component of accumulated other comprehensive income (loss), net of tax effects, are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net ​ Net Unrealized ​ Foreign ​ Accumulated ​ ​ Unrealized ​ Gains (Losses) ​ Currency ​ Other ​ ​ Gains (Losses) ​ on Cash ​ Translation ​ Comprehensive Three Months Ended September 30, 2021 on Securities Flow Hedges Adjustments (1) Loss ​ ​ (in thousands) Balance at June 30, 2021 ​ $ 10,484 ​ $ 72 ​ $ (36,127) ​ $ (25,571) Changes in other comprehensive income (loss) ​ (2,769) ​ 908 ​ (21,064) ​ (22,925) Balance at September 30, 2021 ​ $ 7,715 ​ $ 980 ​ $ (57,191) ​ $ (48,496) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net ​ Net Unrealized ​ Foreign ​ Accumulated ​ ​ Unrealized ​ Gains (Losses) ​ Currency ​ Other ​ ​ Gains (Losses) ​ on Cash ​ Translation ​ Comprehensive Three Months Ended September 30, 2020 on Securities Flow Hedges Adjustments (1) Loss ​ ​ (in thousands) Balance at June 30, 2020 ​ $ 11,913 ​ $ (653) ​ $ (95,081) ​ $ (83,821) Changes in other comprehensive income (loss) ​ 4,386 ​ 478 ​ 35,495 ​ 40,359 Balance at September 30, 2020 ​ $ 16,299 ​ $ (175) ​ $ (59,586) ​ $ (43,462) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net ​ Net Unrealized ​ Foreign ​ Accumulated ​ ​ Unrealized ​ Gains (Losses) ​ Currency ​ Other ​ ​ Gains (Losses) ​ on Cash ​ Translation ​ Comprehensive Nine Months Ended September 30, 2021 on Securities Flow Hedges Adjustments (1) Loss ​ ​ (in thousands) Balance at December 31, 2020 ​ $ 18,267 ​ $ (700) ​ $ (17,186) ​ $ 381 Changes in other comprehensive income (loss) ​ (10,552) ​ 1,680 ​ (40,005) ​ (48,877) Balance at September 30, 2021 ​ $ 7,715 ​ $ 980 ​ $ (57,191) ​ $ (48,496) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net ​ Net Unrealized ​ Foreign ​ Accumulated ​ ​ Unrealized ​ Gains (Losses) ​ Currency ​ Other ​ ​ Gains (Losses) ​ on Cash ​ Translation ​ Comprehensive Nine Months Ended September 30, 2020 on Securities Flow Hedges Adjustments (1) Loss ​ ​ (in thousands) Balance at December 31, 2019 ​ $ 386 ​ $ (133) ​ $ (92,319) ​ $ (92,066) Changes in other comprehensive income (loss) ​ 15,913 ​ (42) ​ 28,846 ​ 44,717 Recognition resulting from the sale of Precima’s foreign subsidiaries ​ — ​ — ​ 3,887 (2) 3,887 Balance at September 30, 2020 ​ $ 16,299 ​ $ (175) ​ $ (59,586) ​ $ (43,462) (1) Primarily related to the impact of changes in the Canadian dollar and Euro foreign currency exchange rates. (2) In accordance with ASC 830, upon the sale of Precima on January 10, 2020, $3.9 million of accumulated foreign currency translation adjustments attributable to Precima’s foreign subsidiaries sold were reclassified from accumulated other comprehensive income (loss) and included in the calculation of the gain on sale of Precima. Other reclassifications from accumulated other comprehensive income (loss) into net income for each of the periods presented were not material.

INCOME TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 2021
INCOME TAXES
INCOME TAXES	14. INCOME TAXES For the three months ended September 30, 2021 and 2020, the Company utilized an effective tax rate of 40.8% and 24.1%, respectively, to calculate its provision for income taxes. The increase in the effective tax rate for the three months ended September 30, 2021 as compared to the respective prior year period was a result of an unfavorable adjustment in the current period related to a settlement of a foreign tax position. For the nine months ended September 30, 2021 and 2020, the Company utilized an effective tax rate of 35.5% and 22.2%, respectively, to calculate its provision for income taxes. The increase in the effective tax rate for the nine months ended September 30, 2021 as compared to the respective prior year period was a result of an increase in the current year related to additional withholding taxes as well as an unfavorable adjustment related to a settlement of a foreign tax position. Additionally, the effective tax rate for the nine months ending September 30, 2020 included discrete tax benefits related to the expiration of statutes of limitation and the resolution of tax audits in various foreign jurisdictions.

FINANCIAL INSTRUMENTS

FINANCIAL INSTRUMENTS	9 Months Ended
	Sep. 30, 2021
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS	15. FINANCIAL INSTRUMENTS In accordance with ASC 825, “Financial Instruments,” the Company is required to disclose the fair value of financial instruments for which it is practical to estimate fair value. To obtain fair values, observable market prices are used if available. In some instances, observable market prices are not readily available and fair value is determined using present value or other techniques appropriate for a particular financial instrument. These techniques involve judgment and as a result are not necessarily indicative of the amounts the Company would realize in a current market exchange. The use of different assumptions or estimation techniques may have a material effect on the estimated fair value amounts. Fair Value of Financial Instruments ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2021 ​ December 31, 2020 ​ ​ Carrying ​ Fair ​ Carrying ​ Fair ​ Amount Value Amount Value ​ ​ (in thousands) Financial assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Redemption settlement assets, restricted ​ $ 733,952 ​ $ 733,952 ​ $ 693,461 ​ $ 693,461 Other investments ​ 254 ​ 254 ​ 253 ​ 253 Derivative instruments ​ 1,890 ​ 1,890 ​ 353 ​ 353 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Financial liabilities ​ ​ ​ ​ ​ ​ Derivative instruments ​ 847 ​ 847 ​ 1,505 ​ 1,505 ​ The following techniques and assumptions were used by the Company in estimating fair values of financial instruments as disclosed herein: Redemption settlement assets, restricted — Other investments Derivative instruments derivative. This analysis reflected the contractual terms of the derivatives, including the period to maturity, and used observable market-based inputs. Financial Assets and Financial Liabilities Fair Value Hierarchy ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: ● Level 1, defined as observable inputs such as quoted prices in active markets; ● Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and ● Level 3, defined as unobservable inputs where little or no market data exists, therefore requiring an entity to develop its own assumptions. Financial instruments are considered Level 3 when their values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable. Level 3 financial instruments also include those for which the determination of fair value requires significant management judgment or estimation. The use of different techniques to determine fair value of these financial instruments could result in different estimates of fair value at the reporting date. The following tables provide information for the assets and liabilities carried at fair value measured on a recurring basis as of September 30, 2021 and December 31, 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at ​ Fair Value Measurements at ​ ​ September 30, ​ September 30, 2021 Using ​ 2021 Level 1 Level 2 Level 3 ​ ​ (in thousands) Mutual funds (1) ​ $ 26,220 ​ $ 26,220 ​ $ — ​ $ — Corporate bonds (1) ​ ​ 649,536 ​ ​ — ​ ​ 649,536 ​ ​ — Marketable securities (2) ​ 254 ​ 254 ​ — ​ — Derivative instruments (3) ​ 1,890 ​ — ​ 1,890 ​ — Total assets measured at fair value ​ $ 677,900 ​ $ 26,474 ​ $ 651,426 ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Derivative instruments (3) ​ $ 847 ​ $ — ​ $ 847 ​ $ — Total liabilities measured at fair value ​ $ 847 ​ $ — ​ $ 847 ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at ​ Fair Value Measurements at ​ ​ December 31, ​ December 31, 2020 Using ​ 2020 Level 1 Level 2 Level 3 ​ ​ (in thousands) Mutual funds (1) ​ $ 26,850 ​ $ 26,850 ​ $ — ​ $ — Corporate bonds (1) ​ ​ 611,184 ​ ​ — ​ ​ 611,184 ​ ​ — Marketable securities (2) ​ 253 ​ 253 ​ — ​ — Derivative instruments (3) ​ 353 ​ — ​ 353 ​ — Total assets measured at fair value ​ $ 638,640 ​ $ 27,103 ​ $ 611,537 ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Derivative instruments (3) ​ $ 1,505 ​ $ — ​ $ 1,505 ​ $ — Total liabilities measured at fair value ​ $ 1,505 ​ $ — ​ $ 1,505 ​ $ — (1) Amounts are included in redemption settlement assets, restricted in the unaudited condensed combined balance sheets. (2) Amounts are included in other current assets in the unaudited condensed combined balance sheets. (3) Amounts are included in other current assets and other current liabilities in the unaudited condensed combined balance sheets .

SEGMENT INFORMATION

SEGMENT INFORMATION	9 Months Ended
	Sep. 30, 2021
SEGMENT INFORMATION
SEGMENT INFORMATION	16. SEGMENT INFORMATION Operating segments are defined by ASC 280, “Segment Reporting,” as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The operating segments are reviewed separately because each operating segment represents a strategic business unit that generally offers different products and services. ● The AIR MILES Reward Program is a full service outsourced coalition loyalty program for our sponsors, who pay us a fee per AIR MILES reward mile issued, in return for which we provide all marketing, customer service, rewards and redemption management. ● BrandLoyalty designs, implements, conducts and evaluates innovative and tailor-made loyalty programs for grocers and other high-frequency retailers worldwide. These loyalty programs are designed to generate immediate changes in consumer behavior and are offered through leading grocers across Europe and Asia, as well as around the world. ● Corporate and other consists of corporate overhead not allocated to any of the Company’s segments. Income taxes and equity in earnings (losses) from related party investments accounted for under the equity method are not included in the computation of segment operating profit for internal evaluation purposes. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ AIR MILES ​ ​ Corporate/ ​ ​ Three Months Ended September 30, 2021 ​ Reward Program ​ BrandLoyalty ​ Other ​ Total ​ ​ (in thousands) Revenues ​ $ 71,928 ​ $ 97,329 ​ $ — ​ $ 169,257 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) before income taxes ​ $ 33,889 ​ $ 6,524 ​ $ (4,018) ​ $ 36,395 Interest (income) expense, net ​ (206) ​ 70 ​ — ​ (136) Depreciation and amortization ​ 6,018 ​ 3,080 ​ — ​ 9,098 Stock compensation expense ​ 777 ​ 948 ​ 418 ​ 2,143 Adjusted EBITDA (1) ​ $ 40,478 ​ $ 10,622 ​ $ (3,600) ​ $ 47,500 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ AIR MILES ​ ​ Corporate/ ​ ​ Three Months Ended September 30, 2020 ​ Reward Program ​ BrandLoyalty ​ Other ​ Total ​ ​ (in thousands) Revenues ​ $ 66,198 ​ $ 118,558 ​ $ — ​ $ 184,756 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) before income taxes ​ $ 28,376 ​ $ (10,084) ​ $ (3,630) ​ $ 14,662 Interest (income) expense, net ​ (223) ​ 56 ​ — ​ (167) Depreciation and amortization ​ 4,730 ​ 15,543 ​ — ​ 20,273 Stock compensation expense ​ 562 ​ 920 ​ 344 ​ 1,826 Gain on sale of business, net of strategic transaction costs ​ ​ 178 ​ ​ — ​ ​ — ​ ​ 178 Strategic transaction costs ​ 66 ​ — ​ — ​ 66 Restructuring and other charges ​ (5) ​ — ​ — ​ (5) Adjusted EBITDA (1) ​ $ 33,684 ​ $ 6,435 ​ $ (3,286) ​ $ 36,833 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ AIR MILES ​ ​ Corporate/ ​ ​ Nine Months Ended September 30, 2021 ​ Reward Program ​ BrandLoyalty ​ Other ​ Total ​ ​ (in thousands) Revenues ​ $ 214,123 ​ $ 282,593 ​ $ — ​ $ 496,716 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) before income taxes ​ $ 94,214 ​ $ 2,447 ​ $ (11,608) ​ $ 85,053 Interest (income) expense, net ​ (582) ​ 264 ​ — ​ (318) Depreciation and amortization ​ 17,927 ​ 9,626 ​ — ​ 27,553 Stock compensation expense ​ 2,126 ​ 2,883 ​ 1,313 ​ 6,322 Adjusted EBITDA (1) ​ $ 113,685 ​ $ 15,220 ​ $ (10,295) ​ $ 118,610 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ AIR MILES ​ ​ Corporate/ ​ ​ Nine Months Ended September 30, 2020 ​ Reward Program ​ BrandLoyalty ​ Other ​ Total ​ ​ (in thousands) Revenues ​ $ 207,351 ​ $ 326,581 ​ $ — ​ $ 533,932 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) before income taxes ​ $ 107,509 ​ $ (18,562) ​ $ (10,794) ​ $ 78,153 Interest (income) expense, net ​ (826) ​ 310 ​ — ​ (516) Depreciation and amortization ​ 13,136 ​ 43,722 ​ — ​ 56,858 Stock compensation expense ​ 1,515 ​ 2,478 ​ 1,191 ​ 5,184 Gain on sale of business, net of strategic transaction costs ​ (7,791) ​ — ​ — ​ (7,791) Strategic transaction costs ​ 229 ​ — ​ — ​ 229 Restructuring and other charges ​ 174 ​ (50) ​ — ​ 124 Adjusted EBITDA (1) ​ $ 113,946 ​ $ 27,898 ​ $ (9,603) ​ $ 132,241 (1) Adjusted EBITDA is a non-GAAP financial measure equal to net income, the most directly comparable financial measure based on GAAP, plus (income) loss from investment in unconsolidated subsidiary – related party, provision for income taxes, interest (income) expense, net, depreciation and other amortization, and amortization of purchased intangibles, and stock compensation expense. Adjusted EBITDA also excludes the gain on the sale of business, strategic transaction costs, which represent costs for professional services associated with strategic initiatives, and restructuring and other charges .

SUPPLEMENTAL CASH FLOW INFORMAT

SUPPLEMENTAL CASH FLOW INFORMATION	9 Months Ended
	Sep. 30, 2021
SUPPLEMENTAL CASH FLOW INFORMATION
SUPPLEMENTAL CASH FLOW INFORMATION	17. SUPPLEMENTAL CASH FLOW INFORMATION The following table provides a reconciliation of cash and cash equivalents to the total of the amounts reported in the unaudited condensed combined statements of cash flows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ September 30, ​ 2021 2020 ​ ​ (in thousands) Cash and cash equivalents ​ $ 198,865 ​ $ 198,761 Restricted cash included within other current assets (1) ​ 5,312 ​ 4,154 Restricted cash included within redemption settlement assets, restricted (2) ​ 58,196 ​ 45,371 Total cash, cash equivalents and restricted cash ​ $ 262,373 ​ $ 248,286 (1) Includes cash restricted for travel deposits within the AIR MILES Reward Program. (2) See Note 6, “Redemption Settlement Assets, Restricted,” for additional information regarding the nature of restrictions on redemption settlement assets.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	9 Months Ended
	Sep. 30, 2021
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS	18. RELATED PARTY TRANSACTIONS Transactions between the Company and ADS were considered to be effectively settled at the time the transaction was recorded. The net effect of the settlement of these intercompany transactions is reflected in the unaudited condensed combined statements of cash flows as a financing activity as net transfers to Parent and in the unaudited condensed combined balance sheets as Parent’s net investment. ADS allocated $4.0 million and $3.6 million for the three months ended September 30, 2021 and 2020, respectively, and $11.6 million and $10.8 million for the nine months ended September 30, 2021 and 2020, respectively, of corporate overhead costs that directly or indirectly benefit the Company that are included in general and administrative expense within the Company’s unaudited condensed combined statements of income. These assessments relate to information technology, finance, accounting, and tax services provided, as well as human resources, and other functional support. These allocations were determined based on management estimates on the number of employees and non-employee costs associated with the use of these functions by the Company and may not be indicative of the costs that the Company would otherwise incur on a standalone basis. In addition, the Company had an investment in unconsolidated subsidiary that was a consolidated subsidiary of the Parent. See Note 9, “Investment in Unconsolidated Subsidiary - Related Party,” for additional information. In January 2021, the Company paid cash dividends to ADS of $124.2 million, of which $4.2 million was withheld for taxes.

DESCRIPTION OF BUSINESS, SPIN_2

DESCRIPTION OF BUSINESS, SPINOFF AND BASIS OF PRESENTATION (Policies)	9 Months Ended
	Sep. 30, 2021
DESCRIPTION OF BUSINESS, SPINOFF AND BASIS OF PRESENTATION
Description of the Business	Description of the Business Loyalty Ventures Inc. (the “Company” or “Loyalty Ventures”) provides coalition and campaign-based loyalty solutions through the Canadian AIR MILES® Reward Program and BrandLoyalty Group B.V. (“BrandLoyalty”). The AIR MILES Reward Program is a full service outsourced coalition loyalty program for its sponsors who pay a fee per AIR MILES reward mile issued, in return for which the AIR MILES Reward Program provides all marketing, customer service, rewards and redemption management. BrandLoyalty designs, implements, conducts and evaluates innovative and tailor-made loyalty programs for high frequency retailers worldwide. These loyalty programs are designed to generate immediate changes in consumer behavior and are offered across Europe and Asia, as well as around the world. The business represents the LoyaltyOne reportable segment previously owned by Alliance Data Systems Corporation (“ADS” or “Parent”) that was spun off into Loyalty Ventures Inc. on November 5, 2021.
Spinoff of the LoyaltyOne segment	Spinoff of the LoyaltyOne Segment On October 13, 2021, the Board of Directors of ADS approved the previously announced separation (the “Separation”) of its LoyaltyOne segment, into an independent, publicly traded company, Loyalty Ventures Inc. The Separation was completed on November 5, 2021 through the pro rata distribution of 81% of the outstanding shares of Loyalty Ventures to holders of ADS common stock at the close of business on the record date of October 27, 2021, with ADS retaining the remaining 19% of the outstanding shares of Loyalty Ventures. ADS stockholders of record at the close of business on October 27, 2021 received one share of Loyalty Ventures common stock for every two and one In connection with the Separation, Loyalty Ventures entered into several agreements with ADS, including on November 3, 2021 the Separation and Distribution Agreement and on November 5, 2021 the remaining agreements described below, that, among other things, effect the Separation and provide a framework for its relationship with ADS after the Separation: • Separation and Distribution Agreement. Governs the overall terms of the Separation. Generally, the Separation and Distribution Agreement includes ADS’ and Loyalty Ventures’ agreements relating to the restructuring steps taken to complete the Separation, including the assets and rights transferred, liabilities assumed and related matters. The Separation and Distribution Agreement provides for ADS and Loyalty Ventures to transfer specified assets between the companies that operate the LoyaltyOne segment after the Distribution, on the one hand, and ADS’ remaining businesses, on the other hand. • Tax Matters Agreement. Governs ADS’ and Loyalty Ventures’ respective rights, responsibilities and obligations with respect to taxes, including taxes arising in the ordinary course of business, and taxes, if any, incurred as a result of the failure of the Distribution (and certain related transactions) to qualify for tax-free treatment for U.S. federal income tax purposes. The Tax Matters Agreement also sets forth the respective obligations of the parties with respect to the filing of tax returns, the administration of tax contests and assistance and cooperation on tax matters. Under the Tax Matters Agreement, ADS generally is responsible for all of the pre-Separation taxes of Loyalty Ventures and its subsidiaries (“Loyalty Ventures Group”) and is entitled to all the Loyalty Ventures Group’s pre-Separation refunds, and Loyalty Ventures is generally responsible for all post-Separation taxes with respect to the Loyalty Ventures Group. • Transition Services Agreement. Sets forth the terms on which each of Loyalty Ventures and ADS will provide certain historically shared services to the other, on a transitional basis. Transition services will include various corporate, administrative and information technology services. Both parties are obligated, subject to certain customary exceptions, to provide such services in substantially the same manner as such services have been provided during the 12-month period prior to the distribution. • Employee Matters Agreement. Governs each company’s respective compensation and benefit obligations with respect to current and former employees, directors and consultants. The Employee Matters Agreement sets forth general principles relating to employee matters in connection with the Separation, such as the assignment of employees, the assumption and retention of liabilities and related assets, expense reimbursements, workers’ compensation, leaves of absence, the provision of comparable benefits, employee service credit, the sharing of employee information and duplication or acceleration of benefits. • Registration Rights Agreement. Provides ADS with certain customary demand registration, shelf takedown and piggyback registration rights with respect to its shares of Loyalty Ventures’ common stock, subject to certain customary limitations.
Basis of Presentation	Basis of Presentation The Company has historically operated as part of ADS and not as a standalone company. The unaudited condensed combined financial statements have been derived from ADS’ historical accounting records and are presented on a carve-out basis. All revenues and expenses as well as assets and liabilities directly associated with the business activity of the Company are included in the unaudited condensed combined financial statements. The unaudited condensed combined financial statements also include allocations of certain general and administrative expenses from ADS. However, amounts recognized by the Company are not necessarily representative of the amounts that would have been reflected in the unaudited condensed combined financial statements had the Company operated independently of ADS. Related-party allocations are discussed further in Note 18, “Related Party Transactions.” The cash and cash equivalents held by ADS at the corporate level are not specifically identifiable and therefore have not been reflected in the combined balance sheets. ADS’ third-party long-term debt and the related interest expense have not been allocated for any of the periods presented as the Company was not a legal obligor of such debt. Parent’s net investment represents ADS’ interest in the recorded net assets of the Company. All significant transactions between the Company and Parent have been included in the accompanying unaudited condensed combined financial statements. Transactions with Parent as contributions to the carve-out entity or distributions from the carve-out entity are reflected in the accompanying unaudited condensed combined statements of equity as “Changes in Parent’s net investment” and in the accompanying unaudited condensed combined balance sheets within “Parent’s net investment.” All significant intercompany accounts and transactions between the businesses comprising the Company have been eliminated in the accompanying unaudited condensed combined financial statements. The Company’s unaudited condensed combined financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company’s unaudited condensed combined financial statements and accompanying notes are presented in U.S. Dollars (“USD”), the Company’s reporting currency. The unaudited condensed combined financial statements included herein reflect all adjustments (consisting of normal, recurring adjustments) which are, in the opinion of management, necessary to state fairly the results for the interim periods presented. The results of operations for the interim periods presented are not necessarily indicative of the operating results to be expected for any subsequent interim period or for the fiscal year. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. However, the Company believes that the disclosures are adequate to make the information presented not misleading. These unaudited condensed combined financial statements should be read in conjunction with the combined financial statements and the notes thereto for the year ended December 31, 2020 included in our registration statement on Form 10, filed with the Securities and Exchange Commission (“SEC”) on October 13, 2021.
Recently Issued Accounting Standards	Recently Issued Accounting Standards In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, “Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” This ASU provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this ASU apply only to contracts and hedging relationships that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued due to reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022. This ASU is elective and is effective upon issuance for all entities. The Company is evaluating the impact that adoption of ASU 2020-04 will have on its combined financial statements. Recently Adopted Accounting Standards In December 2019, the FASB issued ASU 2019-12, “Simplifying the Accounting for Income Taxes.” ASU 2019-12 eliminated certain exceptions within ASC 740, “Income Taxes,” and clarified certain aspects of ASC 740 to promote consistency among reporting entities. Most amendments within the standard were required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. The Company’s adoption of this standard on January 1, 2021 did not have a material impact on its unaudited condensed combined financial statements.

REVENUE (Tables)

REVENUE (Tables)	9 Months Ended
	Sep. 30, 2021
REVENUE
Schedule of revenue disaggregation	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ AIR MILES ​ ​ ​ ​ Three Months Ended September 30, 2021 ​ Reward Program ​ BrandLoyalty ​ Total ​ ​ (in thousands) Disaggregation of Revenue by Major Source: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Coalition loyalty program ​ $ 68,580 ​ $ — ​ $ 68,580 Campaign-based loyalty solutions ​ — ​ 95,799 ​ 95,799 Other ​ 10 ​ 1,530 ​ 1,540 Revenue from contracts with customers ​ $ 68,590 ​ $ 97,329 ​ $ 165,919 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Investment income ​ 3,338 ​ ​ — ​ 3,338 Total ​ $ 71,928 ​ $ 97,329 ​ $ 169,257 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ AIR MILES ​ ​ ​ ​ Three Months Ended September 30, 2020 ​ Reward Program ​ BrandLoyalty ​ Total ​ ​ (in thousands) Disaggregation of Revenue by Major Source: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Coalition loyalty program ​ $ 62,938 ​ $ — ​ $ 62,938 Campaign-based loyalty solutions ​ — ​ 117,435 ​ 117,435 Other ​ (17) ​ 1,123 ​ 1,106 Revenue from contracts with customers ​ $ 62,921 ​ $ 118,558 ​ $ 181,479 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Investment income ​ 3,277 ​ — ​ 3,277 Total ​ $ 66,198 ​ $ 118,558 ​ $ 184,756 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ AIR MILES ​ ​ ​ ​ Nine Months Ended September 30, 2021 ​ Reward Program ​ BrandLoyalty ​ Total ​ ​ (in thousands) Disaggregation of Revenue by Major Source: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Coalition loyalty program ​ $ 203,870 ​ $ — ​ $ 203,870 Campaign-based loyalty solutions ​ — ​ 278,726 ​ 278,726 Other ​ 12 ​ 3,867 ​ 3,879 Revenue from contracts with customers ​ $ 203,882 ​ $ 282,593 ​ $ 486,475 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Investment income ​ 10,241 ​ — ​ 10,241 Total ​ $ 214,123 ​ $ 282,593 ​ $ 496,716 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ AIR MILES ​ ​ ​ ​ Nine Months Ended September 30, 2020 ​ Reward Program ​ BrandLoyalty ​ Total ​ ​ (in thousands) Disaggregation of Revenue by Major Source: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Coalition loyalty program ​ $ 195,870 ​ $ — ​ $ 195,870 Campaign-based loyalty solutions ​ — ​ 322,504 ​ 322,504 Other ​ 1,903 (1) 4,077 ​ 5,980 Revenue from contracts with customers ​ $ 197,773 ​ $ 326,581 ​ $ 524,354 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Investment income ​ 9,578 ​ — ​ 9,578 Total ​ $ 207,351 ​ $ 326,581 ​ $ 533,932 (1) Includes revenues from Precima®, a provider of retail strategy and customer data applications and analytics, which was sold by the Parent on January 10, 2020, which comprised $1.9 million for the nine months ended September 30, 2020. See Note 4, “Dispositions,” for more information. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ AIR MILES ​ ​ ​ ​ Three Months Ended September 30, 2021 ​ Reward Program ​ BrandLoyalty ​ Total ​ ​ (in thousands) Disaggregation of Revenue by Geographic Region: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ United States ​ $ — ​ $ 95 ​ $ 95 Canada ​ 71,928 ​ 3,894 ​ 75,822 Europe, Middle East and Africa ​ — ​ 68,168 ​ 68,168 Asia Pacific ​ — ​ 22,967 ​ 22,967 Other ​ — ​ 2,205 ​ 2,205 Total ​ $ 71,928 ​ $ 97,329 ​ $ 169,257 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ AIR MILES ​ ​ ​ ​ Three Months Ended September 30, 2020 ​ Reward Program ​ BrandLoyalty ​ Total ​ ​ (in thousands) Disaggregation of Revenue by Geographic Region: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ United States ​ $ — ​ $ 3,316 ​ $ 3,316 Canada ​ 66,198 ​ 4,132 ​ 70,330 Europe, Middle East and Africa ​ — ​ 76,876 ​ 76,876 Asia Pacific ​ — ​ 12,549 ​ 12,549 Other ​ — ​ 21,685 ​ 21,685 Total ​ $ 66,198 ​ $ 118,558 ​ $ 184,756 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ AIR MILES ​ ​ ​ ​ Nine Months Ended September 30, 2021 ​ Reward Program ​ BrandLoyalty ​ Total ​ ​ (in thousands) Disaggregation of Revenue by Geographic Region: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ United States ​ $ — ​ $ 2,637 ​ $ 2,637 Canada ​ 214,123 ​ 15,163 ​ 229,286 Europe, Middle East and Africa ​ — ​ 200,022 ​ 200,022 Asia Pacific ​ — ​ 57,690 ​ 57,690 Other ​ — ​ 7,081 ​ 7,081 Total ​ $ 214,123 ​ $ 282,593 ​ $ 496,716 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ AIR MILES ​ ​ ​ ​ Nine Months Ended September 30, 2020 ​ Reward Program ​ BrandLoyalty ​ Total ​ ​ (in thousands) Disaggregation of Revenue by Geographic Region: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ United States ​ $ 1,028 ​ $ 8,562 ​ $ 9,590 Canada ​ 206,055 ​ 8,065 ​ 214,120 Europe, Middle East and Africa ​ 268 ​ 195,884 ​ 196,152 Asia Pacific ​ — ​ 62,960 ​ 62,960 Other ​ — ​ 51,110 ​ 51,110 Total ​ $ 207,351 ​ $ 326,581 ​ $ 533,932 ​
Schedule of reconciliation of contract liabilities	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Deferred Revenue ​ Service Redemption Total ​ ​ (in thousands) Balance at January 1, 2021 ​ $ 247,186 ​ $ 756,833 ​ $ 1,004,019 Cash proceeds ​ 128,988 ​ ​ 206,715 ​ 335,703 Revenue recognized (1) ​ (148,373) ​ ​ (175,696) ​ (324,069) Other ​ — ​ ​ 1,182 ​ 1,182 Effects of foreign currency translation ​ 1,290 ​ ​ 2,775 ​ 4,065 Balance at September 30, 2021 ​ $ 229,091 ​ $ 791,809 ​ $ 1,020,900 Amounts recognized in the combined balance sheets: ​ ​ ​ Deferred revenue (current) ​ $ 132,486 ​ $ 791,809 ​ $ 924,295 Deferred revenue (non-current) ​ $ 96,605 ​ $ — ​ $ 96,605 (1) Reported on a gross basis herein.

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2020
EARNINGS PER SHARE
Schedule of computation of basic and diluted earning per share of common stock	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, ​ September 30, ​ 2021 2020 2021 2020 ​ (in thousands, except per share amounts) Numerator: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ​ $ 23,961 ​ $ 10,980 ​ $ 57,504 ​ $ 60,566 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Denominator: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of Basic and Diluted Shares Outstanding ​ ​ 24,585 ​ ​ 24,585 ​ ​ 24,585 ​ ​ 24,585 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income per share - Basic and Diluted ​ $ 0.97 ​ $ 0.45 ​ $ 2.34 ​ $ 2.46

REDEMPTION SETTLEMENT ASSETS,_2

REDEMPTION SETTLEMENT ASSETS, RESTRICTED (Tables)	9 Months Ended
	Sep. 30, 2021
REDEMPTION SETTLEMENT ASSETS, RESTRICTED.
Schedule of redemption settlement assets	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ ​ 2021 ​ 2020 ​ Fair Value Fair Value ​ ​ (in thousands) Restricted cash ​ $ 58,196 ​ $ 55,427 Mutual funds ​ 26,220 ​ 26,850 Corporate bonds ​ 649,536 ​ 611,184 Total ​ $ 733,952 ​ $ 693,461
Schedule of amortized cost, unrealized gains and losses, and fair value of securities available-for-sale	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2021 ​ December 31, 2020 ​ ​ Amortized ​ Unrealized ​ Unrealized ​ ​ ​ ​ Amortized ​ Unrealized ​ Unrealized ​ ​ ​ ​ Cost Gains Losses Fair Value Cost Gains Losses Fair Value ​ ​ (in thousands) Corporate bonds ​ $ 641,820 ​ $ 10,257 ​ $ (2,541) ​ $ 649,536 ​ $ 592,247 ​ $ 19,110 ​ $ (173) ​ $ 611,184 Total ​ $ 641,820 ​ $ 10,257 ​ $ (2,541) ​ $ 649,536 ​ $ 592,247 ​ $ 19,110 ​ $ (173) ​ $ 611,184
Schedule of unrealized loss position and fair value of debt securities available for sale	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2021 ​ ​ Less than 12 months ​ 12 Months or Greater ​ Total ​ ​ ​ ​ ​ Unrealized ​ ​ ​ ​ Unrealized ​ ​ ​ ​ Unrealized ​ Fair Value Losses Fair Value Losses Fair Value Losses ​ ​ (in thousands) Corporate bonds ​ $ 178,215 ​ $ (2,367) ​ $ 14,224 ​ $ (174) ​ $ 192,439 ​ $ (2,541) Total ​ $ 178,215 ​ $ (2,367) ​ $ 14,224 ​ $ (174) ​ $ 192,439 ​ $ (2,541) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2020 ​ ​ Less than 12 months ​ 12 Months or Greater ​ Total ​ ​ ​ ​ ​ Unrealized ​ ​ ​ ​ Unrealized ​ ​ ​ ​ Unrealized ​ ​ Fair Value ​ Losses ​ Fair Value ​ Losses ​ Fair Value ​ Losses ​ ​ (in thousands) Corporate bonds $ 46,190 $ (86) $ 10,316 $ (87) $ 56,506 $ (173) Total ​ $ 46,190 ​ $ (86) ​ $ 10,316 ​ $ (87) ​ $ 56,506 ​ $ (173)

LEASES (Tables)

LEASES (Tables)	9 Months Ended
	Sep. 30, 2021
LEASES
Schedule of components of lease expense	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, ​ September 30, ​ 2021 2020 2021 2020 ​ ​ (in thousands) Operating lease cost ​ $ 3,923 ​ $ 3,898 ​ $ 11,929 ​ $ 11,624 Short-term lease cost ​ 84 ​ 107 ​ 255 ​ 354 Variable lease cost ​ 922 ​ 949 ​ 3,134 ​ 3,143 Total ​ $ 4,929 ​ $ 4,954 ​ $ 15,318 ​ $ 15,121
Schedule of weighted average remaining lease term and discount rate	​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ September 30, ​ 2021 2020 Weighted-average remaining lease term (in years): ​ Operating leases 10.9 11.6 ​ Weighted-average discount rate: ​ Operating leases 4.7 % 4.6 %
Schedule of supplemental cashflow information	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, ​ September 30, ​ 2021 2020 2021 2020 ​ ​ (in thousands) Cash paid for amounts included in the measurement of lease liabilities: ​ ​ ​ ​ ​ Operating cash flows from operating leases ​ $ 4,062 ​ $ 5,441 ​ $ 13,871 ​ $ 13,527 Right of use assets obtained in exchange for lease obligations: ​ ​ ​ ​ Operating leases ​ $ 16 ​ $ 462 ​ $ 200 ​ $ 3,021
Schedule of maturities of the lease liabilities	​ ​ ​ ​ ​ ​ ​ Operating Year Leases ​ ​ (in thousands) 2021 (excluding the nine months ended September 30, 2021) ​ $ 2,798 2022 ​ 15,782 2023 ​ 14,375 2024 ​ 13,472 2025 ​ 12,935 Thereafter ​ 90,545 Total undiscounted lease liabilities ​ 149,907 Less: Amount representing interest ​ (33,606) Total present value of minimum lease payments ​ $ 116,301 ​ ​ ​ ​ Amounts recognized in the September 30, 2021 combined balance sheet: ​ Current operating lease liabilities ​ $ 9,626 Long-term operating lease liabilities ​ 106,675 Total ​ $ 116,301

INTANGIBLE ASSETS AND GOODWILL

INTANGIBLE ASSETS AND GOODWILL (Tables)	9 Months Ended
	Sep. 30, 2021
INTANGIBLE ASSETS AND GOODWILL
Schedule of Intangible assets	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2021 ​ ​ ​ Gross ​ Accumulated ​ ​ ​ ​ ​ Assets Amortization Net Amortization Life and Method ​ ​ (in thousands) ​ Tradenames ​ $ 32,895 ​ $ (29,445) ​ $ 3,450 8‑15 years—straight line Collector database ​ 55,205 ​ (55,075) ​ 130 5 years—straight line Total intangible assets ​ $ 88,100 ​ $ (84,520) ​ $ 3,580 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2020 ​ ​ ​ Gross ​ Accumulated ​ ​ ​ ​ ​ Assets Amortization Net Amortization Life and Method ​ ​ (in thousands) ​ Customer contracts $ 354,242 $ (354,242) $ — ​ 7 years—straight line Tradenames ​ ​ 34,691 ​ ​ (30,112) ​ ​ 4,579 ​ 8‑15 years—straight line Collector database ​ ​ 54,973 ​ ​ (54,455) ​ ​ 518 ​ 5 years—straight line Total intangible assets $ 443,906 ​ $ (438,809) ​ $ 5,097 ​ ​
Schedule of estimated amortization expense related to intangible assets	​ ​ ​ ​ ​ ​ ​ For the Years Ending ​ December 31, ​ ​ (in thousands) 2021 (excluding the nine months ended September 30, 2021) ​ $ 427 2022 ​ 1,189 2023 ​ 1,189 2024 ​ 610 2025 ​ 31 Thereafter ​ 134
Schedule of changes in the carrying amount of goodwill	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ AIR MILES ​ ​ ​ ​ ​ ​ ​ Reward Program BrandLoyalty Total ​ (in thousands) Balance at January 1, 2021 ​ $ 193,276 ​ $ 542,622 ​ $ 735,898 Effects of foreign currency translation ​ 815 ​ (27,707) ​ (26,892) Balance at September 30, 2021 ​ $ 194,091 ​ $ 514,915 ​ $ 709,006

SHARE-BASED PAYMENTS (Tables)

SHARE-BASED PAYMENTS (Tables)	9 Months Ended
	Sep. 30, 2021
SHARE-BASED PAYMENTS
Stock-based compensation expense recognized in statements of income	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, ​ September 30, ​ 2021 2020 2021 2020 ​ ​ (in thousands) Cost of operations ​ $ 1,725 ​ $ 1,482 ​ $ 5,009 ​ $ 3,993 General and administrative ​ 418 ​ 344 ​ 1,313 ​ 1,191 Total ​ $ 2,143 ​ $ 1,826 ​ $ 6,322 ​ $ 5,184

ACCUMULATED OTHER COMPREHENSI_2

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)	9 Months Ended
	Sep. 30, 2021
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
Schedule of changes in components of accumulated other comprehensive income (loss)	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net ​ Net Unrealized ​ Foreign ​ Accumulated ​ ​ Unrealized ​ Gains (Losses) ​ Currency ​ Other ​ ​ Gains (Losses) ​ on Cash ​ Translation ​ Comprehensive Three Months Ended September 30, 2021 on Securities Flow Hedges Adjustments (1) Loss ​ ​ (in thousands) Balance at June 30, 2021 ​ $ 10,484 ​ $ 72 ​ $ (36,127) ​ $ (25,571) Changes in other comprehensive income (loss) ​ (2,769) ​ 908 ​ (21,064) ​ (22,925) Balance at September 30, 2021 ​ $ 7,715 ​ $ 980 ​ $ (57,191) ​ $ (48,496) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net ​ Net Unrealized ​ Foreign ​ Accumulated ​ ​ Unrealized ​ Gains (Losses) ​ Currency ​ Other ​ ​ Gains (Losses) ​ on Cash ​ Translation ​ Comprehensive Three Months Ended September 30, 2020 on Securities Flow Hedges Adjustments (1) Loss ​ ​ (in thousands) Balance at June 30, 2020 ​ $ 11,913 ​ $ (653) ​ $ (95,081) ​ $ (83,821) Changes in other comprehensive income (loss) ​ 4,386 ​ 478 ​ 35,495 ​ 40,359 Balance at September 30, 2020 ​ $ 16,299 ​ $ (175) ​ $ (59,586) ​ $ (43,462) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net ​ Net Unrealized ​ Foreign ​ Accumulated ​ ​ Unrealized ​ Gains (Losses) ​ Currency ​ Other ​ ​ Gains (Losses) ​ on Cash ​ Translation ​ Comprehensive Nine Months Ended September 30, 2021 on Securities Flow Hedges Adjustments (1) Loss ​ ​ (in thousands) Balance at December 31, 2020 ​ $ 18,267 ​ $ (700) ​ $ (17,186) ​ $ 381 Changes in other comprehensive income (loss) ​ (10,552) ​ 1,680 ​ (40,005) ​ (48,877) Balance at September 30, 2021 ​ $ 7,715 ​ $ 980 ​ $ (57,191) ​ $ (48,496) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net ​ Net Unrealized ​ Foreign ​ Accumulated ​ ​ Unrealized ​ Gains (Losses) ​ Currency ​ Other ​ ​ Gains (Losses) ​ on Cash ​ Translation ​ Comprehensive Nine Months Ended September 30, 2020 on Securities Flow Hedges Adjustments (1) Loss ​ ​ (in thousands) Balance at December 31, 2019 ​ $ 386 ​ $ (133) ​ $ (92,319) ​ $ (92,066) Changes in other comprehensive income (loss) ​ 15,913 ​ (42) ​ 28,846 ​ 44,717 Recognition resulting from the sale of Precima’s foreign subsidiaries ​ — ​ — ​ 3,887 (2) 3,887 Balance at September 30, 2020 ​ $ 16,299 ​ $ (175) ​ $ (59,586) ​ $ (43,462) (1) Primarily related to the impact of changes in the Canadian dollar and Euro foreign currency exchange rates. (2) In accordance with ASC 830, upon the sale of Precima on January 10, 2020, $3.9 million of accumulated foreign currency translation adjustments attributable to Precima’s foreign subsidiaries sold were reclassified from accumulated other comprehensive income (loss) and included in the calculation of the gain on sale of Precima.

FINANCIAL INSTRUMENTS (Tables)

FINANCIAL INSTRUMENTS (Tables)	9 Months Ended
	Sep. 30, 2021
FINANCIAL INSTRUMENTS
Schedule of Fair Value, by Balance Sheet Grouping	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2021 ​ December 31, 2020 ​ ​ Carrying ​ Fair ​ Carrying ​ Fair ​ Amount Value Amount Value ​ ​ (in thousands) Financial assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Redemption settlement assets, restricted ​ $ 733,952 ​ $ 733,952 ​ $ 693,461 ​ $ 693,461 Other investments ​ 254 ​ 254 ​ 253 ​ 253 Derivative instruments ​ 1,890 ​ 1,890 ​ 353 ​ 353 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Financial liabilities ​ ​ ​ ​ ​ ​ Derivative instruments ​ 847 ​ 847 ​ 1,505 ​ 1,505
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at ​ Fair Value Measurements at ​ ​ September 30, ​ September 30, 2021 Using ​ 2021 Level 1 Level 2 Level 3 ​ ​ (in thousands) Mutual funds (1) ​ $ 26,220 ​ $ 26,220 ​ $ — ​ $ — Corporate bonds (1) ​ ​ 649,536 ​ ​ — ​ ​ 649,536 ​ ​ — Marketable securities (2) ​ 254 ​ 254 ​ — ​ — Derivative instruments (3) ​ 1,890 ​ — ​ 1,890 ​ — Total assets measured at fair value ​ $ 677,900 ​ $ 26,474 ​ $ 651,426 ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Derivative instruments (3) ​ $ 847 ​ $ — ​ $ 847 ​ $ — Total liabilities measured at fair value ​ $ 847 ​ $ — ​ $ 847 ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at ​ Fair Value Measurements at ​ ​ December 31, ​ December 31, 2020 Using ​ 2020 Level 1 Level 2 Level 3 ​ ​ (in thousands) Mutual funds (1) ​ $ 26,850 ​ $ 26,850 ​ $ — ​ $ — Corporate bonds (1) ​ ​ 611,184 ​ ​ — ​ ​ 611,184 ​ ​ — Marketable securities (2) ​ 253 ​ 253 ​ — ​ — Derivative instruments (3) ​ 353 ​ — ​ 353 ​ — Total assets measured at fair value ​ $ 638,640 ​ $ 27,103 ​ $ 611,537 ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Derivative instruments (3) ​ $ 1,505 ​ $ — ​ $ 1,505 ​ $ — Total liabilities measured at fair value ​ $ 1,505 ​ $ — ​ $ 1,505 ​ $ — (1) Amounts are included in redemption settlement assets, restricted in the unaudited condensed combined balance sheets. (2) Amounts are included in other current assets in the unaudited condensed combined balance sheets. (3) Amounts are included in other current assets and other current liabilities in the unaudited condensed combined balance sheets .

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	9 Months Ended
	Sep. 30, 2021
SEGMENT INFORMATION
Schedule of segment information	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ AIR MILES ​ ​ Corporate/ ​ ​ Three Months Ended September 30, 2021 ​ Reward Program ​ BrandLoyalty ​ Other ​ Total ​ ​ (in thousands) Revenues ​ $ 71,928 ​ $ 97,329 ​ $ — ​ $ 169,257 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) before income taxes ​ $ 33,889 ​ $ 6,524 ​ $ (4,018) ​ $ 36,395 Interest (income) expense, net ​ (206) ​ 70 ​ — ​ (136) Depreciation and amortization ​ 6,018 ​ 3,080 ​ — ​ 9,098 Stock compensation expense ​ 777 ​ 948 ​ 418 ​ 2,143 Adjusted EBITDA (1) ​ $ 40,478 ​ $ 10,622 ​ $ (3,600) ​ $ 47,500 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ AIR MILES ​ ​ Corporate/ ​ ​ Three Months Ended September 30, 2020 ​ Reward Program ​ BrandLoyalty ​ Other ​ Total ​ ​ (in thousands) Revenues ​ $ 66,198 ​ $ 118,558 ​ $ — ​ $ 184,756 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) before income taxes ​ $ 28,376 ​ $ (10,084) ​ $ (3,630) ​ $ 14,662 Interest (income) expense, net ​ (223) ​ 56 ​ — ​ (167) Depreciation and amortization ​ 4,730 ​ 15,543 ​ — ​ 20,273 Stock compensation expense ​ 562 ​ 920 ​ 344 ​ 1,826 Gain on sale of business, net of strategic transaction costs ​ ​ 178 ​ ​ — ​ ​ — ​ ​ 178 Strategic transaction costs ​ 66 ​ — ​ — ​ 66 Restructuring and other charges ​ (5) ​ — ​ — ​ (5) Adjusted EBITDA (1) ​ $ 33,684 ​ $ 6,435 ​ $ (3,286) ​ $ 36,833 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ AIR MILES ​ ​ Corporate/ ​ ​ Nine Months Ended September 30, 2021 ​ Reward Program ​ BrandLoyalty ​ Other ​ Total ​ ​ (in thousands) Revenues ​ $ 214,123 ​ $ 282,593 ​ $ — ​ $ 496,716 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) before income taxes ​ $ 94,214 ​ $ 2,447 ​ $ (11,608) ​ $ 85,053 Interest (income) expense, net ​ (582) ​ 264 ​ — ​ (318) Depreciation and amortization ​ 17,927 ​ 9,626 ​ — ​ 27,553 Stock compensation expense ​ 2,126 ​ 2,883 ​ 1,313 ​ 6,322 Adjusted EBITDA (1) ​ $ 113,685 ​ $ 15,220 ​ $ (10,295) ​ $ 118,610 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ AIR MILES ​ ​ Corporate/ ​ ​ Nine Months Ended September 30, 2020 ​ Reward Program ​ BrandLoyalty ​ Other ​ Total ​ ​ (in thousands) Revenues ​ $ 207,351 ​ $ 326,581 ​ $ — ​ $ 533,932 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) before income taxes ​ $ 107,509 ​ $ (18,562) ​ $ (10,794) ​ $ 78,153 Interest (income) expense, net ​ (826) ​ 310 ​ — ​ (516) Depreciation and amortization ​ 13,136 ​ 43,722 ​ — ​ 56,858 Stock compensation expense ​ 1,515 ​ 2,478 ​ 1,191 ​ 5,184 Gain on sale of business, net of strategic transaction costs ​ (7,791) ​ — ​ — ​ (7,791) Strategic transaction costs ​ 229 ​ — ​ — ​ 229 Restructuring and other charges ​ 174 ​ (50) ​ — ​ 124 Adjusted EBITDA (1) ​ $ 113,946 ​ $ 27,898 ​ $ (9,603) ​ $ 132,241 (1) Adjusted EBITDA is a non-GAAP financial measure equal to net income, the most directly comparable financial measure based on GAAP, plus (income) loss from investment in unconsolidated subsidiary – related party, provision for income taxes, interest (income) expense, net, depreciation and other amortization, and amortization of purchased intangibles, and stock compensation expense. Adjusted EBITDA also excludes the gain on the sale of business, strategic transaction costs, which represent costs for professional services associated with strategic initiatives, and restructuring and other charges .

SUPPLEMENTAL CASH FLOW INFORM_2

SUPPLEMENTAL CASH FLOW INFORMATION (Tables)	9 Months Ended
	Sep. 30, 2021
SUPPLEMENTAL CASH FLOW INFORMATION
Schedule of reconciliation of cash and cash equivalents	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ September 30, ​ 2021 2020 ​ ​ (in thousands) Cash and cash equivalents ​ $ 198,865 ​ $ 198,761 Restricted cash included within other current assets (1) ​ 5,312 ​ 4,154 Restricted cash included within redemption settlement assets, restricted (2) ​ 58,196 ​ 45,371 Total cash, cash equivalents and restricted cash ​ $ 262,373 ​ $ 248,286 (1) Includes cash restricted for travel deposits within the AIR MILES Reward Program. (2) See Note 6, “Redemption Settlement Assets, Restricted,” for additional information regarding the nature of restrictions on redemption settlement assets.

DESCRIPTION OF BUSINESS, SPIN_3

DESCRIPTION OF BUSINESS, SPINOFF AND BASIS OF PRESENTATION (Details) $ in Millions	Nov. 05, 2021	Nov. 03, 2021USD ($)
Alliance Data Systems (ADS)
Noncontrolling Interest [Line Items]
ADS stockholders to receive Loyalty Ventures common stock (in percentage)	0.40
Cash distribution spin off		$ 750
Holders of Alliance Data Corporation Common Stock
Noncontrolling Interest [Line Items]
Ownership interest	81.00%
Alliance Data Systems (ADS)
Noncontrolling Interest [Line Items]
Ownership interest	19.00%

REVENUE - Schedule of revenue d

REVENUE - Schedule of revenue disaggregation (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021USD ($)	Sep. 30, 2020USD ($)	Sep. 30, 2021USD ($)segment	Sep. 30, 2020USD ($)
Disaggregation of Revenue [Line Items]
Number of segments | segment			2
Revenue from contracts with customers	$ 165,919	$ 181,479	$ 486,475	$ 524,354
Investment income	3,338	3,277	10,241	9,578
Total	169,257	184,756	496,716	533,932
Precima
Disaggregation of Revenue [Line Items]
Revenues from disposal group				1,900
United States
Disaggregation of Revenue [Line Items]
Total	95	3,316	2,637	9,590
Canada
Disaggregation of Revenue [Line Items]
Total	75,822	70,330	229,286	214,120
Europe, Middle East and Africa
Disaggregation of Revenue [Line Items]
Total	68,168	76,876	200,022	196,152
Asia Pacific
Disaggregation of Revenue [Line Items]
Total	22,967	12,549	57,690	62,960
Other
Disaggregation of Revenue [Line Items]
Total	2,205	21,685	7,081	51,110
AIR MILES Reward Program
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	68,590	62,921	203,882	197,773
Investment income	3,338	3,277	10,241	9,578
Total	71,928	66,198	214,123	207,351
AIR MILES Reward Program | United States
Disaggregation of Revenue [Line Items]
Total				1,028
AIR MILES Reward Program | Canada
Disaggregation of Revenue [Line Items]
Total	71,928	66,198	214,123	206,055
AIR MILES Reward Program | Europe, Middle East and Africa
Disaggregation of Revenue [Line Items]
Total				268
Brand Loyalty
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	97,329	118,558	282,593	326,581
Total	97,329	118,558	282,593	326,581
Brand Loyalty | United States
Disaggregation of Revenue [Line Items]
Total	95	3,316	2,637	8,562
Brand Loyalty | Canada
Disaggregation of Revenue [Line Items]
Total	3,894	4,132	15,163	8,065
Brand Loyalty | Europe, Middle East and Africa
Disaggregation of Revenue [Line Items]
Total	68,168	76,876	200,022	195,884
Brand Loyalty | Asia Pacific
Disaggregation of Revenue [Line Items]
Total	22,967	12,549	57,690	62,960
Brand Loyalty | Other
Disaggregation of Revenue [Line Items]
Total	2,205	21,685	7,081	51,110
Coalition loyalty program
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	68,580	62,938	203,870	195,870
Coalition loyalty program | AIR MILES Reward Program
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	68,580	62,938	203,870	195,870
Campaign-based loyalty solutions
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	95,799	117,435	278,726	322,504
Campaign-based loyalty solutions | Brand Loyalty
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	95,799	117,435	278,726	322,504
Other Revenue
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	1,540	1,106	3,879	5,980
Total	6,302	8,054	16,628	21,456
Other Revenue | AIR MILES Reward Program
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	10	(17)	12	1,903
Other Revenue | Brand Loyalty
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	$ 1,530	$ 1,123	$ 3,867	$ 4,077

REVENUE - Schedule of reconcili

REVENUE - Schedule of reconciliation of contract liabilities (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Disaggregation of Revenue [Line Items]
Revenue recognized	$ 226,900
Amounts recognized in the combined balance sheets:
Deferred revenue (current)	924,295	$ 898,475
Deferred revenue (non-current)	96,605	$ 105,544
AIR MILES Reward Program
Disaggregation of Revenue [Line Items]
Beginning balance	1,004,019
Cash proceeds	335,703
Revenue recognized	(324,069)
Other	1,182
Effects of foreign currency translation	4,065
Ending balance	1,020,900
Amounts recognized in the combined balance sheets:
Deferred revenue (current)	924,295
Deferred revenue (non-current)	96,605
AIR MILES Reward Program | Service
Disaggregation of Revenue [Line Items]
Beginning balance	247,186
Cash proceeds	128,988
Revenue recognized	(148,373)
Effects of foreign currency translation	1,290
Ending balance	229,091
Amounts recognized in the combined balance sheets:
Deferred revenue (current)	132,486
Deferred revenue (non-current)	96,605
AIR MILES Reward Program | Redemption
Disaggregation of Revenue [Line Items]
Beginning balance	756,833
Cash proceeds	206,715
Revenue recognized	(175,696)
Other	1,182
Effects of foreign currency translation	2,775
Ending balance	791,809
Amounts recognized in the combined balance sheets:
Deferred revenue (current)	$ 791,809

REVENUE - Narratives (Details)

REVENUE - Narratives (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue recognized	$ 226.9
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred revenue balance expected to be recognized	$ 44.5
Deferred revenue balance expected to be recognized, period	3 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred revenue balance expected to be recognized	$ 109.5
Deferred revenue balance expected to be recognized, period	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred revenue balance expected to be recognized	$ 57.6
Deferred revenue balance expected to be recognized, period	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred revenue balance expected to be recognized	$ 17.5
Deferred revenue balance expected to be recognized, period	12 months
Other current liabilities
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Contract liabilities	$ 107.2	$ 66.9

EARNINGS PER SHARE - Narrative

EARNINGS PER SHARE - Narrative (Details)	Nov. 05, 2021shares	Sep. 30, 2021shares	Sep. 30, 2020shares	Sep. 30, 2021shares	Sep. 30, 2020shares
Earning Per Share [Line Items]
Common stock, shares outstanding	24,585,237
Dilutive equity instruments (in shares)		0	0	0	0
Equity awards (in shares)		0	0	0	0
Alliance Data Systems (ADS)
Earning Per Share [Line Items]
ADS stockholders to receive Loyalty Ventures common stock (in percentage)	0.40
Holders of Alliance Data Corporation Common Stock
Earning Per Share [Line Items]
Ownership interest	81.00%
Alliance Data Systems (ADS)
Earning Per Share [Line Items]
Ownership interest	19.00%

EARNINGS PER SHARE - Computatio

EARNINGS PER SHARE - Computation of basic and diluted earning per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Numerator:
Net income	$ 23,961	$ 10,980	$ 57,504	$ 60,566
Denominator:
Number of Basic Shares Outstanding	24,585	24,585	24,585	24,585
Number of Diluted Shares Outstanding	24,585	24,585	24,585	24,585
Net income per share - Basic	$ 0.97	$ 0.45	$ 2.34	$ 2.46
Net income per share - Diluted	$ 0.97	$ 0.45	$ 2.34	$ 2.46

DISPOSITIONS (Details)

DISPOSITIONS (Details) - Precima - Discontinued operation - USD ($) $ in Millions	Jan. 10, 2020	Sep. 30, 2020	Jan. 31, 2020
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total consideration	$ 43.8
Proceeds on earnout determination date		$ 5
Pre tax gain			$ 10.9
Transaction costs	$ 3.1

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
INVENTORIES
Inventories	$ 192,277	$ 164,306

REDEMPTION SETTLEMENT ASSETS,_3

REDEMPTION SETTLEMENT ASSETS, RESTRICTED - Components of redemption settlement assets (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Schedule Of Redemption Settlement Assets [Line Items]
Redemption settlement assets, Fair Value, Total	$ 733,952	$ 693,461
Restricted cash
Schedule Of Redemption Settlement Assets [Line Items]
Redemption settlement assets, Fair Value, Total	58,196	55,427
Mutual funds
Schedule Of Redemption Settlement Assets [Line Items]
Redemption settlement assets, Fair Value, Total	26,220	26,850
Corporate bonds
Schedule Of Redemption Settlement Assets [Line Items]
Redemption settlement assets, Fair Value, Total	$ 649,536	$ 611,184

REDEMPTION SETTLEMENT ASSETS,_4

REDEMPTION SETTLEMENT ASSETS, RESTRICTED - Amortized cost, unrealized gains and losses, and fair value of securities available-for-sale (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 641,820	$ 592,247
Unrealized Gains	10,257	19,110
Unrealized Losses	(2,541)	(173)
Fair Value	649,536	611,184
Corporate bonds
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	641,820	592,247
Unrealized Gains	10,257	19,110
Unrealized Losses	(2,541)	(173)
Fair Value	$ 649,536	$ 611,184

REDEMPTION SETTLEMENT ASSETS,_5

REDEMPTION SETTLEMENT ASSETS, RESTRICTED - Unrealized losses and fair value (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, Fair Value	$ 178,215	$ 46,190
Less than 12 months, Unrealized Losses	(2,367)	(86)
12 Months or Greater, Fair Value	14,224	10,316
12 Months or Greater, Unrealized Losses	(174)	(87)
Fair Value	192,439	56,506
Unrealized Losses	(2,541)	(173)
Corporate bonds
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, Fair Value	178,215	46,190
Less than 12 months, Unrealized Losses	(2,367)	(86)
12 Months or Greater, Fair Value	14,224	10,316
12 Months or Greater, Unrealized Losses	(174)	(87)
Fair Value	192,439	56,506
Unrealized Losses	$ (2,541)	$ (173)

REDEMPTION SETTLEMENT ASSETS,_6

REDEMPTION SETTLEMENT ASSETS, RESTRICTED - Maturity (Details) $ in Thousands	Sep. 30, 2021USD ($)
Amortized Cost
Due in one year or less	$ 131,884
Due after one year through five years	505,989
Due after five year through ten years	3,947
Total	641,820
Estimated Fair Value
Due in one year or less	132,984
Due after one year through five years	512,567
Due after five year through ten years	3,985
Total	$ 649,536

REDEMPTION SETTLEMENT ASSETS,_7

REDEMPTION SETTLEMENT ASSETS, RESTRICTED - Narratives (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
REDEMPTION SETTLEMENT ASSETS, RESTRICTED.
Realized gain (loss)		$ 300,000	$ (600,000)	$ 1,000,000
Realized gains or losses	$ 0	$ 0	$ 200,000	$ 0

LEASES - Narratives (Details)

LEASES - Narratives (Details)	Sep. 30, 2021
Maximum
Lessee, Lease, Description [Line Items]
Remaining lease term	12 years
Minimum
Lessee, Lease, Description [Line Items]
Remaining lease term	1 year

LEASES - Components of lease ex

LEASES - Components of lease expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Lessee Disclosure [Abstract]
Operating lease cost	$ 3,923	$ 3,898	$ 11,929	$ 11,624
Short-term lease cost	84	107	255	354
Variable lease cost	922	949	3,134	3,143
Total	$ 4,929	$ 4,954	$ 15,318	$ 15,121

LEASES - Other information rela

LEASES - Other information related to leases (Details)	Sep. 30, 2021	Sep. 30, 2020
LEASES
Operating leases, Weighted-average remaining lease term (in years)	10 years 10 months 24 days	11 years 7 months 6 days
Operating leases, Weighted-average discount rate:	4.70%	4.60%

LEASES - Supplemental cash flow

LEASES - Supplemental cash flow information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
LEASES
Operating cash flows from operating leases, Cash paid for amounts included in the measurement of lease liabilities	$ 4,062	$ 5,441	$ 13,871	$ 13,527
Operating leases, Right of use assets obtained in exchange for lease obligations	$ 16	$ 462	$ 200	$ 3,021

LEASES - Maturities (Details)

LEASES - Maturities (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
LEASES
2021 (excluding the nine months ended September 30, 2021)	$ 2,798
2022	15,782
2023	14,375
2024	13,472
2025	12,935
Thereafter	90,545
Total undiscounted lease liabilities	149,907
Less: Amount representing interest	(33,606)
Total present value of minimum lease payments	116,301
Current operating lease liabilities	9,626	$ 9,942
Long-term operating lease liabilities	106,675	$ 117,648
Total	$ 116,301

INTANGIBLE ASSETS AND GOODWIL_2

INTANGIBLE ASSETS AND GOODWILL - Intangible assets (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]
Gross Assets	$ 88,100	$ 443,906
Accumulated Amortization	(84,520)	(438,809)
Net	3,580	5,097
Customer Contracts [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Assets		354,242
Accumulated Amortization		$ (354,242)
Amortization Life		7 years
Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Assets	32,895	$ 34,691
Accumulated Amortization	(29,445)	(30,112)
Net	$ 3,450	$ 4,579
Trade Names [Member] | Minimum
Finite-Lived Intangible Assets [Line Items]
Amortization Life	8 years	8 years
Trade Names [Member] | Maximum
Finite-Lived Intangible Assets [Line Items]
Amortization Life	15 years	15 years
Collector Database [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Assets	$ 55,205	$ 54,973
Accumulated Amortization	(55,075)	(54,455)
Net	$ 130	$ 518
Amortization Life	5 years	5 years

INTANGIBLE ASSETS AND GOODWIL_3

INTANGIBLE ASSETS AND GOODWILL - Intangible assets maturity (Details) $ in Thousands	Sep. 30, 2021USD ($)
INTANGIBLE ASSETS AND GOODWILL
2021 (excluding the nine months ended September 30, 2021)	$ 427
2022	1,189
2023	1,189
2024	610
2025	31
Thereafter	$ 134

INTANGIBLE ASSETS AND GOODWIL_4

INTANGIBLE ASSETS AND GOODWILL - Goodwill carrying amount (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2021USD ($)
Goodwill carrying amount
Balance at Beginning	$ 735,898
Effects of foreign currency translation	(26,892)
Balance at Ending	709,006
AIR MILES Reward Program
Goodwill carrying amount
Balance at Beginning	193,276
Effects of foreign currency translation	815
Balance at Ending	194,091
Brand Loyalty
Goodwill carrying amount
Balance at Beginning	542,622
Effects of foreign currency translation	(27,707)
Balance at Ending	$ 514,915

INVESTMENT IN UNCONSOLIDATED _2

INVESTMENT IN UNCONSOLIDATED SUBSIDIARY - RELATED PARTY (Details) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended		9 Months Ended
	Aug. 31, 2021	Mar. 31, 2021	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Feb. 28, 2021	Dec. 31, 2020
Schedule of Equity Method Investments [Line Items]
Proceeds from sale of investment					$ 4,055
Capital contribution						$ 736
Gain on sale of investment of unconsolidated subsidiary - related party					4,110
(Income) loss from investment in unconsolidated subsidiary - related party, net of tax			$ 4,108	$ (148)	4,067	(205)
Comenity Canada L.P [Member]
Schedule of Equity Method Investments [Line Items]
Ownership percentage		98.00%					99.90%	99.90%
Distribution		$ 800
Investment in comenity canada lp								$ 900
Proceeds from sale of investment	$ 4,100
Capital contribution						$ 700
Gain on sale of investment of unconsolidated subsidiary - related party	$ 4,100
(Income) loss from investment in unconsolidated subsidiary - related party, net of tax			$ 4,100		$ 4,100

DEBT (Details)

DEBT (Details) - USD ($) $ in Thousands	Nov. 03, 2021	Sep. 30, 2021	Dec. 31, 2020
Term loan A facility
Debt Instrument [Line Items]
Quarterly principal payments, percentage of principal amount of debt	7.50%
Term loan B facility
Debt Instrument [Line Items]
Quarterly principal payments, percentage of principal amount of debt	7.50%
Brand loyalty credit agreement
Debt Instrument [Line Items]
Outstanding debt		$ 0	$ 0
Senior secured credit agreement
Debt Instrument [Line Items]
Cash distribution spin off	$ 750,000
Senior secured credit agreement | Minimum
Debt Instrument [Line Items]
Percentage of commitment fee	0.40%
Senior secured credit agreement | Maximum
Debt Instrument [Line Items]
Percentage of commitment fee	0.50%
Senior secured credit agreement | Term loan A facility
Debt Instrument [Line Items]
Principal amount of debt	$ 175,000
Senior secured credit agreement | Term loan A facility | Base rate
Debt Instrument [Line Items]
Floor interest rate	1.00%
Senior secured credit agreement | Term loan A facility | Base rate | Minimum
Debt Instrument [Line Items]
Interest rate	2.00%
Senior secured credit agreement | Term loan A facility | Base rate | Maximum
Debt Instrument [Line Items]
Interest rate	2.75%
Senior secured credit agreement | Term loan A facility | Eurodollar
Debt Instrument [Line Items]
Floor interest rate	0.00%
Senior secured credit agreement | Term loan A facility | Eurodollar | Minimum
Debt Instrument [Line Items]
Interest rate	3.00%
Senior secured credit agreement | Term loan A facility | Eurodollar | Maximum
Debt Instrument [Line Items]
Interest rate	3.75%
Senior secured credit agreement | Term loan B facility
Debt Instrument [Line Items]
Principal amount of debt	$ 500,000
Percentage of principal amount of debt	98.00%
Senior secured credit agreement | Term loan B facility | Option one
Debt Instrument [Line Items]
percentage of prepayment of debt	0.00%
Senior secured credit agreement | Term loan B facility | Option two
Debt Instrument [Line Items]
percentage of prepayment of debt	25.00%
Senior secured credit agreement | Term loan B facility | Option three
Debt Instrument [Line Items]
percentage of prepayment of debt	50.00%
Senior secured credit agreement | Term loan B facility | Base rate
Debt Instrument [Line Items]
Floor interest rate	1.50%
Interest rate	3.50%
Senior secured credit agreement | Term loan B facility | Eurodollar
Debt Instrument [Line Items]
Floor interest rate	0.50%
Interest rate	4.50%
Senior secured credit agreement | Revolving credit facility
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 150,000

DERIVATIVE INSTRUMENTS (Details

DERIVATIVE INSTRUMENTS (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Other current assets
Derivatives, Fair Value [Line Items]
Derivative asset	$ 1.9	$ 0.4
Other current liabilities
Derivatives, Fair Value [Line Items]
Derivative liability	$ 0.8	$ 1.5

SHARE-BASED PAYMENTS (Details)

SHARE-BASED PAYMENTS (Details) - $ / shares	Oct. 22, 2021	Sep. 30, 2021
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Forfeiture term	1 year
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of the awards		$ 92.62
Performance-based awards | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards vesting percentage		170.00%
Performance-based awards | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards vesting percentage		0.00%
Service-based awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards vesting period		3 years

SHARE-BASED PAYMENTS - Stock-ba

SHARE-BASED PAYMENTS - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock compensation expense	$ 2,143	$ 1,826	$ 6,322	$ 5,184
Restricted stock units
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock compensation expense	2,143	1,826	6,322	5,184
Cost of operations | Restricted stock units
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock compensation expense	1,725	1,482	5,009	3,993
General and administrative | Restricted stock units
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock compensation expense	$ 418	$ 344	$ 1,313	$ 1,191

ACCUMULATED OTHER COMPREHENSI_3

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands	Jan. 10, 2020	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at Beginning		$ 987,015	$ 978,008	$ 1,094,301	$ 947,559
Balance at Ending		993,576	1,032,711	993,576	1,032,711
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at Beginning		(25,571)	(83,821)	381	(92,066)
Changes in other comprehensive income (loss)		(22,925)	40,359	(48,877)	44,717
Recognition resulting from the sale of Precima's foreign subsidiaries					3,887
Balance at Ending		(48,496)	(43,462)	(48,496)	(43,462)
Net Unrealized Gains (Losses) on Securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at Beginning		10,484	11,913	18,267	386
Changes in other comprehensive income (loss)		(2,769)	4,386	(10,552)	15,913
Balance at Ending		7,715	16,299	7,715	16,299
Net Unrealized Gains (Losses) on Cash Flow Hedges
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at Beginning		72	(653)	(700)	(133)
Changes in other comprehensive income (loss)		908	478	1,680	(42)
Balance at Ending		980	(175)	980	(175)
Foreign Currency Translation Adjustments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at Beginning		(36,127)	(95,081)	(17,186)	(92,319)
Changes in other comprehensive income (loss)		(21,064)	35,495	(40,005)	28,846
Recognition resulting from the sale of Precima's foreign subsidiaries	$ 3,900				3,887
Balance at Ending		$ (57,191)	$ (59,586)	$ (57,191)	$ (59,586)

INCOME TAXES (Details)

INCOME TAXES (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
INCOME TAXES
Effective income tax rate	40.80%	24.10%	35.50%	22.20%

FINANCIAL INSTRUMENT - Estimate

FINANCIAL INSTRUMENT - Estimated fair values of the company's financial instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Financial assets
Redemption settlement assets, restricted	$ 733,952	$ 693,461
Carrying Amount
Financial assets
Redemption settlement assets, restricted	733,952	693,461
Other investments	254	253
Derivative instruments - Assets	1,890	353
Financial liabilities
Derivative instruments - Liability	847	1,505
Fair Value
Financial assets
Redemption settlement assets, restricted	733,952	693,461
Other investments	254	253
Derivative instruments - Assets	1,890	353
Financial liabilities
Derivative instruments - Liability	$ 847	$ 1,505

FINANCIAL INSTRUMENTS - Assets

FINANCIAL INSTRUMENTS - Assets and liabilities carried at fair value measured on a recurring basis (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mutual funds	$ 26,220	$ 26,850
Corporate bonds	649,536	611,184
Marketable securities	254	253
Derivative instruments - Assets	1,890	353
Total assets measured at fair value	677,900	638,640
Derivative instruments - Liability	847	1,505
Total liabilities measured at fair value	847	1,505
Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mutual funds	26,220	26,850
Marketable securities	254	253
Total assets measured at fair value	26,474	27,103
Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Corporate bonds	649,536	611,184
Derivative instruments - Assets	1,890	353
Total assets measured at fair value	651,426	611,537
Derivative instruments - Liability	847	1,505
Total liabilities measured at fair value	847	1,505
Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	254	253
Derivative instruments - Assets	1,890	353
Derivative instruments - Liability	$ 847	$ 1,505

SEGMENT INFORMATION (Details)

SEGMENT INFORMATION (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Segment Information
Revenues	$ 169,257	$ 184,756	$ 496,716	$ 533,932
Income (loss) before income taxes	36,395	14,662	85,053	78,153
Interest (income) expense, net	(136)	(167)	(318)	(516)
Depreciation and amortization	9,098	20,273	27,553	56,858
Stock compensation expense	2,143	1,826	6,322	5,184
Gain on sale of business, net of strategic transaction costs		178		(7,791)
Strategic transaction costs		66		229
Restructuring and other charges		(5)		124
Adjusted EBITDA	47,500	36,833	118,610	132,241
AIR MILES Reward Program
Segment Information
Revenues	71,928	66,198	214,123	207,351
Income (loss) before income taxes	33,889	28,376	94,214	107,509
Interest (income) expense, net	(206)	(223)	(582)	(826)
Depreciation and amortization	6,018	4,730	17,927	13,136
Stock compensation expense	777	562	2,126	1,515
Gain on sale of business, net of strategic transaction costs		178		(7,791)
Strategic transaction costs		66		229
Restructuring and other charges		(5)		174
Adjusted EBITDA	40,478	33,684	113,685	113,946
Brand Loyalty
Segment Information
Revenues	97,329	118,558	282,593	326,581
Income (loss) before income taxes	6,524	(10,084)	2,447	(18,562)
Interest (income) expense, net	70	56	264	310
Depreciation and amortization	3,080	15,543	9,626	43,722
Stock compensation expense	948	920	2,883	2,478
Restructuring and other charges				(50)
Adjusted EBITDA	10,622	6,435	15,220	27,898
Corporate/Other
Segment Information
Income (loss) before income taxes	(4,018)	(3,630)	(11,608)	(10,794)
Stock compensation expense	418	344	1,313	1,191
Adjusted EBITDA	$ (3,600)	$ (3,286)	$ (10,295)	$ (9,603)

SUPPLEMENTAL CASH FLOW INFORM_3

SUPPLEMENTAL CASH FLOW INFORMATION - Reconciliation of cash and cash equivalents (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020	Sep. 30, 2020	Dec. 31, 2019
Cash and cash equivalents	$ 198,865	$ 278,841	$ 198,761
Total cash, cash equivalents and restricted cash	262,373	$ 337,525	248,286	$ 175,132
Other current assets
Restricted cash	5,312		4,154
Redemption settlement assets
Restricted cash	$ 58,196		$ 45,371

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - Alliance Data Systems (ADS) - USD ($) $ in Millions	1 Months Ended	3 Months Ended		9 Months Ended
	Jan. 31, 2021	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Related Party Transactions
Corporate overhead costs		$ 4	$ 3.6	$ 11.6	$ 10.8
Dividends	$ 124.2
Dividend withheld for taxes	$ 4.2