Loyalty Ventures (LYLTQ) 10-Q 6 May 22 2022 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2022	May 02, 2022
Document and Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2022
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	8235 Douglas Avenue, Suite 1200
Entity Address, City or Town	Dallas
Entity Address, Postal Zip Code	75225
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	Yes
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		24,611,546
Entity Central Index Key	0001870997
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Amendment Flag	false

UNAUDITED CONDENSED CONSOLIDATE

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
ASSETS
Cash and cash equivalents	$ 139,724	$ 167,601
Accounts receivable, net, less allowance for doubtful accounts ($3.9 million and $4.7 million at March 31, 2022 and December 31, 2021, respectively)	271,084	288,251
Inventories, net	213,183	188,577
Redemption settlement assets, restricted	699,531	735,131
Other current assets	28,653	28,627
Total current assets	1,352,175	1,408,187
Property and equipment, net	74,563	79,959
Right of use assets - operating	96,459	99,515
Deferred tax asset, net	58,363	58,128
Intangible assets, net	2,729	3,095
Goodwill	639,947	649,958
Other non-current assets	24,739	24,885
Total assets	2,248,975	2,323,727
LIABILITIES AND EQUITY
Accounts payable	81,149	103,482
Accrued expenses	136,660	144,997
Deferred revenue	916,679	924,789
Current operating lease liabilities	9,414	10,055
Current debt	50,625	50,625
Other current liabilities	133,527	118,444
Total current liabilities	1,328,054	1,352,392
Deferred revenue	95,443	97,167
Long-term operating lease liabilities	100,422	103,242
Long-term debt	591,714	603,488
Other liabilities	20,676	20,874
Total liabilities	2,136,309	2,177,163
Commitments and contingencies
EQUITY
Common stock, $0.01 par value; authorized, 200,000 shares; issued, 24,612 shares and 24,585 shares at March 31, 2022 and December 31, 2021, respectively	246	246
Additional paid-in-capital	269,847	266,775
Accumulated deficit	(54,365)	(55,383)
Accumulated other comprehensive loss	(103,062)	(65,074)
Total equity	112,666	146,564
Total liabilities and equity	$ 2,248,975	$ 2,323,727

UNAUDITED CONDENSED CONSOLIDA_2

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Millions	Mar. 31, 2022	Dec. 31, 2021
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
Allowance for doubtful accounts	$ 3.9	$ 4.7
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized shares	200,000	200,000
Common stock, issued shares	24,612	24,585

UNAUDITED CONDENSED CONSOLIDA_3

UNAUDITED CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Total revenue	$ 154,945	$ 176,554
Operating expenses
Cost of operations (exclusive of depreciation and amortization disclosed separately below)	127,878	135,846
General and administrative	6,209	3,685
Depreciation and other amortization	9,125	8,595
Amortization of purchased intangibles	288	439
Total operating expenses	143,500	148,565
Operating income	11,445	27,989
Interest expense (income), net	9,052	(69)
Income before income taxes and loss from investment in unconsolidated subsidiary	2,393	28,058
Provision for income taxes	1,375	8,984
Loss from investment in unconsolidated subsidiary - related party, net of tax		36
Net income	$ 1,018	$ 19,038
Net income per share - Basic (Note 3)	$ 0.04	$ 0.77
Net income per share - Diluted (Note 3)	$ 0.04	$ 0.77
Weighted average shares - Basic (Note 3)	24,598	24,585
Weighted average shares - Diluted (Note 3)	24,626	24,585
Redemption
Total revenue	$ 84,976	$ 104,864
Services
Total revenue	63,783	66,223
Other Revenue
Total revenue	$ 6,186	$ 5,467

UNAUDITED CONDENSED CONSOLIDA_4

UNAUDITED CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
UNAUDITED CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF COMPREHENSIVE LOSS
Net income	$ 1,018	$ 19,038
Other comprehensive income (loss):
Unrealized loss on securities available-for-sale	(20,801)	(6,400)
Unrealized loss on securities available-for-sale, net of tax	(20,801)	(6,400)
Unrealized gain on cash flow hedges	2	1,121
Tax benefit (expense)	34	(204)
Unrealized gain on cash flow hedges, net of tax	36	917
Foreign currency translation adjustments	(17,223)	(29,699)
Other comprehensive loss, net of tax	(37,988)	(35,182)
Total comprehensive loss, net of tax	$ (36,970)	$ (16,144)

UNAUDITED CONDENSED CONSOLIDA_5

UNAUDITED CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF EQUITY - USD ($) shares in Thousands, $ in Thousands	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Former Parent's Net Investment	Accumulated Other Comprehensive Income (Loss)	Total
Balance at Beginning at Dec. 31, 2020				$ 1,093,920	$ 381	$ 1,094,301
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income				19,038		19,038
Other comprehensive loss					(35,182)	(35,182)
Change in former Parent's net investment				(119,731)		(119,731)
Balance at Ending at Mar. 31, 2021				$ 993,227	(34,801)	958,426
Balance at Beginning at Dec. 31, 2021	$ 246	$ 266,775	$ (55,383)		(65,074)	146,564
Balance at Beginning (in shares) at Dec. 31, 2021	24,585
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income			1,018			1,018
Other comprehensive loss					(37,988)	(37,988)
Net transfers from former Parent for Separation-related transactions		1,354				1,354
Stock-based compensation		2,328				2,328
Other		(610)				(610)
Other (in shares)	27
Balance at Ending at Mar. 31, 2022	$ 246	$ 269,847	$ (54,365)		$ (103,062)	$ 112,666
Balance at Ending (in shares) at Mar. 31, 2022	24,612

UNAUDITED CONDENSED CONSOLIDA_6

UNAUDITED CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 1,018	$ 19,038
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization	9,413	9,034
Deferred income tax benefit	(1,054)	(478)
Non-cash stock compensation	2,328	1,853
Change in other operating assets and liabilities:
Change in deferred revenue	(20,700)	4,433
Change in accounts receivable	16,800	16,518
Change in accounts payable and accrued expenses	(28,551)	(23,778)
Change in other assets	(25,778)	15,913
Change in other liabilities	14,440	49,402
Other	3,366	4,922
Net cash (used in) provided by operating activities	(28,718)	96,857
CASH FLOWS FROM INVESTING ACTIVITIES:
Change in redemption settlement assets, restricted	(8,324)	(13,109)
Capital expenditures	(3,698)	(4,548)
Distributions from investment in unconsolidated subsidiary - related party		795
Net cash used in investing activities	(12,022)	(16,862)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under debt agreements	1,000
Repayments of borrowings	(13,656)
Dividends paid to former Parent		(120,000)
Net transfers to former Parent		(3,514)
Net transfers from former Parent for Separation-related transactions	1,569
Other	(579)
Net cash used in financing activities	(11,666)	(123,514)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(662)	(1,571)
Change in cash, cash equivalents and restricted cash	(53,068)	(45,090)
Cash, cash equivalents and restricted cash at beginning of year	232,602	337,525
Cash, cash equivalents and restricted cash at end of year	179,534	292,435
SUPPLEMENTAL CASH FLOW INFORMATION:
Interest paid	8,280	92
Income taxes paid, net	$ 8,535	$ 15,769

DESCRIPTION OF BUSINESS AND BAS

DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2022
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION	​ 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION Description of the Business On November 5, 2021, Bread Financial Holdings, Inc., previously named Alliance Data Systems Corporation (“former Parent”), completed the spinoff of its LoyaltyOne reportable segment (the “Separation”) into an independent, publicly traded company, Loyalty Ventures Inc. (the “Company” or “Loyalty Ventures”). Loyalty Ventures provides coalition and campaign-based loyalty solutions through the Canadian AIR MILES ® Basis of Presentation Prior to the Separation, the Company had operated as part of the former Parent and not as a standalone company. The unaudited condensed combined financial statements for the three months ended March 31, 2021 have been derived from the former Parent’s historical accounting records and are presented on a “carve-out” basis. The unaudited condensed combined financial statements for the three months ended March 31, 2021 also include allocations of certain general and administrative expenses from the former Parent that directly or indirectly benefited Loyalty Ventures’ business. 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. The former Parent’s third-party long-term debt and the related interest expense was not allocated for the three months ended March 31, 2021 as the Company was not the legal obligor of such debt. The former Parent’s net investment represents its interest in the recorded net assets of the Company. All significant transactions between the Company and its former Parent have been included in the accompanying unaudited condensed combined financial statements. Transactions with the former 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 “Change in former Parent’s net investment.” The unaudited consolidated financial statements for the three months ended March 31, 2022 were based on the reported results of Loyalty Ventures as a standalone company and prepared on a consolidated basis. All significant intercompany accounts and transactions between the businesses comprising the Company have been eliminated in the accompanying unaudited condensed consolidated and combined financial statements. The Company’s unaudited condensed consolidated and 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 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 consolidated and combined financial statements and accompanying notes are presented in U.S. Dollars (“USD”), the Company’s reporting currency. The unaudited condensed consolidated and 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 consolidated and combined financial statements should be read in conjunction with the consolidated and combined financial statements and the notes thereto for the year ended December 31, 2021 included in the Company’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”) on February 28, 2022. 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 consolidated financial statements. In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers,” which requires an acquirer in a business combination to recognize and measure contract assets and contract liabilities in accordance with Accounting Standards Codification (“ASC”) 606. ASU 2021-08 is effective for fiscal years beginning after December 15, 2022 and early adoption is permitted. The Company is evaluating the impact that adoption of ASU 2021-08 will have on its consolidated financial statements.

REVENUE

REVENUE	3 Months Ended
	Mar. 31, 2022
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 March 31, 2022 ​ Reward Program ​ BrandLoyalty ​ Eliminations ​ Total ​ ​ (in thousands) Disaggregation of Revenue by Major Source: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Coalition loyalty program ​ $ 62,401 ​ $ — ​ $ — ​ $ 62,401 Campaign-based loyalty programs ​ — ​ 87,600 ​ ​ — ​ 87,600 Other ​ 41 ​ 1,681 ​ ​ (44) ​ 1,678 Revenue from contracts with customers ​ $ 62,442 ​ $ 89,281 ​ $ (44) ​ $ 151,679 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Investment income ​ 3,266 ​ — ​ ​ — ​ 3,266 Total ​ $ 65,708 ​ $ 89,281 ​ $ (44) ​ $ 154,945 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ AIR MILES ​ ​ ​ ​ ​ Three Months Ended March 31, 2021 ​ Reward Program ​ BrandLoyalty ​ Eliminations ​ Total ​ ​ (in thousands) Disaggregation of Revenue by Major Source: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Coalition loyalty program ​ $ 66,745 ​ $ — ​ $ — ​ $ 66,745 Campaign-based loyalty programs ​ — ​ 106,297 ​ ​ — ​ 106,297 Other ​ — ​ — ​ ​ — ​ — Revenue from contracts with customers ​ $ 66,745 ​ $ 106,297 ​ $ — ​ $ 173,042 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Investment income ​ 3,512 ​ — ​ ​ — ​ 3,512 Total ​ $ 70,257 ​ $ 106,297 ​ $ — ​ $ 176,554 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ AIR MILES ​ ​ ​ ​ ​ ​ Three Months Ended March 31, 2022 ​ Reward Program ​ BrandLoyalty ​ Eliminations ​ Total ​ ​ (in thousands) Disaggregation of Revenue by Geographic Region: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ United States ​ $ — ​ $ — ​ $ — ​ $ — Canada ​ 65,708 ​ 6,020 ​ ​ (44) ​ 71,684 Europe, Middle East and Africa ​ — ​ 62,689 ​ ​ — ​ 62,689 Asia Pacific ​ — ​ 18,278 ​ ​ — ​ 18,278 Other ​ — ​ 2,294 ​ ​ — ​ 2,294 Total ​ $ 65,708 ​ $ 89,281 ​ $ (44) ​ $ 154,945 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ AIR MILES ​ ​ ​ ​ ​ ​ Three Months Ended March 31, 2021 ​ Reward Program ​ BrandLoyalty ​ Eliminations ​ Total ​ ​ (in thousands) Disaggregation of Revenue by Geographic Region: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ United States ​ $ — ​ $ 1,045 ​ $ — ​ $ 1,045 Canada ​ 70,257 ​ 9,685 ​ ​ — ​ 79,942 Europe, Middle East and Africa ​ — ​ 79,414 ​ ​ — ​ 79,414 Asia Pacific ​ — ​ 14,919 ​ ​ — ​ 14,919 Other ​ — ​ 1,234 ​ ​ — ​ 1,234 Total ​ $ 70,257 ​ $ 106,297 ​ $ — ​ $ 176,554 ​ 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 programs. 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, 2022 ​ $ 230,492 ​ $ 791,464 ​ $ 1,021,956 Cash proceeds ​ 40,352 ​ ​ 62,538 ​ 102,890 Revenue recognized (1) ​ (47,220) ​ ​ (76,573) ​ (123,793) Other ​ — ​ ​ 306 ​ 306 Effects of foreign currency translation ​ 2,399 ​ ​ 8,364 ​ 10,763 Balance at March 31, 2022 ​ $ 226,023 ​ $ 786,099 ​ $ 1,012,122 Amounts recognized in the consolidated balance sheets: ​ ​ ​ Deferred revenue (current) ​ $ 130,580 ​ $ 786,099 ​ $ 916,679 Deferred revenue (non-current) ​ $ 95,443 ​ $ — ​ $ 95,443 (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 $107.1 million in 2022 2023 2024 2025 The contract liabilities for BrandLoyalty’s campaign-based loyalty programs are recognized in other current liabilities in the Company’s unaudited condensed consolidated balance sheets. The beginning balance as of January 1, 2022 was $85.4 million and the closing balance as of March 31, 2022 was $100.7 million, with the change due to cash payments received in advance of program performance, offset in part by revenue recognized of approximately $66.7 million during the three months ended March 31, 2022.

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	Mar. 31, 2022
EARNINGS PER SHARE
EARNINGS PER SHARE	3. EARNINGS PER SHARE A total of 24,585,237 shares of Loyalty Ventures common stock were outstanding at November 5, 2021, the date of the Separation, and this share amount was utilized for the calculation of basic and diluted earnings per share for all periods presented prior to the Separation. For the three months ended March 31, 2021, these shares are treated as issued and outstanding for purposes of calculating historical basic and diluted earnings per share. For the three months ended March 31, 2022, the calculation of basic and diluted earnings per share is based on the weighted average number of common shares outstanding. The dilutive effect of equity awards of Loyalty Ventures granted subsequent to the Separation is included in the diluted calculation. The following table sets forth the computation of basic and diluted earnings per share of common stock: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ March 31, ​ 2022 2021 ​ ​ (in thousands, except per share amounts) Numerator: ​ ​ ​ ​ ​ ​ Net income ​ $ 1,018 ​ $ 19,038 ​ ​ ​ ​ ​ ​ ​ Denominator: ​ ​ ​ ​ ​ ​ Weighted average shares, basic ​ ​ 24,598 ​ ​ 24,585 Weighted average effect of dilutive securities: ​ ​ ​ ​ ​ ​ Net effect of dilutive unvested restricted stock (1) ​ ​ 28 ​ ​ — Denominator for diluted calculation ​ ​ 24,626 ​ ​ 24,585 ​ ​ ​ ​ ​ ​ ​ Basic net income per share: ​ $ 0.04 ​ $ 0.77 Diluted net income per share: ​ $ 0.04 ​ $ 0.77 (1) For the three months ended March 31, 2022, there were 0.2 million restricted stock units that were anti-dilutive. For the three months ended March 31, 2021, there are no dilutive equity instruments as there were no equity awards of Loyalty Ventures outstanding prior to the Separation.

INVENTORIES, NET

INVENTORIES, NET	3 Months Ended
	Mar. 31, 2022
INVENTORIES, NET
INVENTORIES, NET	4. INVENTORIES, NET Inventories, net of $213.2 million and $188.6 million at March 31, 2022 and December 31, 2021, 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	3 Months Ended
	Mar. 31, 2022
REDEMPTION SETTLEMENT ASSETS, RESTRICTED.
REDEMPTION SETTLEMENT ASSETS, RESTRICTED	5. 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: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ December 31, ​ ​ 2022 ​ 2021 ​ Fair Value Fair Value ​ ​ (in thousands) Restricted cash ​ $ 29,256 ​ $ 58,752 Mutual funds ​ 24,955 ​ 25,990 Corporate bonds ​ 645,320 ​ 650,389 Total ​ $ 699,531 ​ $ 735,131 ​ The following table shows the amortized cost, unrealized gains and losses, and fair value of securities available-for-sale as of March 31, 2022 and December 31, 2021, respectively: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2022 ​ December 31, 2021 ​ ​ ​ Amortized ​ Unrealized ​ Unrealized ​ ​ ​ ​ Amortized ​ Unrealized ​ Unrealized ​ ​ ​ ​ ​ Cost Gains Losses Fair Value Cost Gains Losses Fair Value ​ ​ ​ (in thousands) Corporate bonds ​ ​ $ 663,980 ​ $ 783 ​ $ (19,443) ​ $ 645,320 ​ $ 648,248 ​ $ 6,389 ​ $ (4,248) ​ $ 650,389 Total ​ ​ $ 663,980 ​ $ 783 ​ $ (19,443) ​ $ 645,320 ​ $ 648,248 ​ $ 6,389 ​ $ (4,248) ​ $ 650,389 ​ The following tables show the unrealized losses and fair value for those investments that were in an unrealized loss position as of March 31, 2022 and December 31, 2021, respectively, aggregated by investment category and the length of time that individual securities have been in a continuous loss position: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2022 ​ ​ 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 $ 347,095 ​ $ (11,395) ​ $ 112,652 ​ $ (8,048) ​ $ 459,747 ​ $ (19,443) Total ​ $ 347,095 ​ $ (11,395) ​ $ 112,652 ​ $ (8,048) ​ $ 459,747 ​ $ (19,443) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 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 $ 104,052 ​ $ (1,341) ​ $ 123,382 ​ $ (2,907) $ 227,434 $ (4,248) Total ​ $ 104,052 ​ $ (1,341) ​ $ 123,382 ​ $ (2,907) ​ $ 227,434 ​ $ (4,248) ​ The amortized cost and estimated fair value of the securities available-for-sale at March 31, 2022 by contractual maturity are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ Amortized Estimated ​ ​ Cost ​ Fair Value ​ ​ (in thousands) Due in one year or less ​ $ 131,903 ​ $ 132,384 Due after one year through five years ​ 515,585 ​ 497,130 Due after five years through ten years ​ 16,492 ​ 15,806 Total ​ $ 663,980 ​ $ 645,320 ​ 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 $1.3 million and $0.6 million for the three months ended March 31, 2022 and 2021, respectively. For available-for-sale debt securities in which fair value is less than cost, ASC 326, “Financial Instruments – Credit Losses,” 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 March 31, 2022, the Company does not consider its investments to be impaired. Gains from the sale of investment securities were de minimis for the three months ended March 31, 2022. There were no realized gains or losses from the sale of investment securities for the three months ended March 31, 2021.

LEASES

LEASES	3 Months Ended
	Mar. 31, 2022
LEASES
LEASES	6. LEASES The Company has operating leases for general office properties, warehouses, data centers, customer care centers, automobiles and certain equipment. As of March 31, 2022, 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 ​ ​ March 31, ​ 2022 2021 ​ ​ (in thousands) Operating lease cost ​ $ 3,742 ​ $ 3,991 Short-term lease cost ​ 70 ​ 84 Variable lease cost ​ 1,134 ​ 1,131 Total ​ $ 4,946 ​ $ 5,206 ​ Sublease income was $0.9 million and $0.5 million for the three months ended March 31, 2022 and 2021, respectively, and is presented net of lease expense. ​ Other information related to leases was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ March 31, ​ 2022 2021 Weighted-average remaining lease term (in years): ​ Operating leases 10.5 11.2 ​ Weighted-average discount rate: ​ ​ Operating leases 4.7 % 4.6 % ​ Supplemental cash flow information related to leases was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ March 31, ​ 2022 2021 ​ ​ (in thousands) Cash paid for amounts included in the measurement of lease liabilities: ​ ​ Operating cash flows from operating leases ​ $ 3,969 ​ $ 4,164 Right-of-use assets obtained in exchange for lease obligations: ​ ​ Operating leases ​ $ 852 ​ $ 7 ​ Maturities of the lease liabilities as of March 31, 2022 were as follows: ​ ​ ​ ​ ​ ​ ​ Operating Year Leases ​ ​ (in thousands) 2022 (excluding the three months ended March 31, 2022) ​ $ 10,683 2023 ​ 14,122 2024 ​ 13,262 2025 ​ 12,909 2026 ​ 12,540 Thereafter ​ 77,013 Total undiscounted lease liabilities ​ 140,529 Less: Amount representing interest ​ (30,693) Total present value of minimum lease payments ​ $ 109,836 ​ ​ ​ ​ Amounts recognized in the March 31, 2022 consolidated balance sheet: ​ Current operating lease liabilities ​ $ 9,414 Long-term operating lease liabilities ​ 100,422 Total ​ $ 109,836 ​

INTANGIBLE ASSETS AND GOODWILL

INTANGIBLE ASSETS AND GOODWILL	3 Months Ended
	Mar. 31, 2022
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL	7. INTANGIBLE ASSETS AND GOODWILL Intangible Assets Intangible assets consist of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2022 ​ ​ ​ Gross ​ Accumulated ​ ​ ​ ​ ​ Assets Amortization Net Amortization Life and Method ​ ​ (in thousands) ​ Tradenames $ 31,430 ​ $ (28,701) ​ $ 2,729 8‑15 years—straight line Total intangible assets ​ $ 31,430 ​ $ (28,701) ​ $ 2,729 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2021 ​ ​ ​ Gross ​ Accumulated ​ ​ ​ ​ ​ Assets Amortization Net Amortization Life and Method ​ ​ (in thousands) ​ Tradenames ​ $ 32,289 ​ $ (29,194) ​ $ 3,095 ​ 8‑15 years—straight line Collector database ​ ​ 55,397 ​ (55,397) ​ ​ — ​ 5 years—straight line Total intangible assets $ 87,686 ​ $ (84,591) ​ $ 3,095 ​ ​ ​ 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) 2022 (excluding the three months ended March 31, 2022) ​ $ 852 2023 ​ 1,136 2024 ​ 583 2025 ​ 30 2026 ​ 30 Thereafter ​ 98 ​ Goodwill The changes in the carrying amount of goodwill are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ AIR MILES ​ ​ ​ ​ ​ ​ ​ Reward Program BrandLoyalty (1) Total ​ (in thousands) Balance at January 1, 2022 ​ $ 194,767 ​ $ 455,191 ​ $ 649,958 Effects of foreign currency translation ​ 2,103 ​ ​ (12,114) ​ (10,011) Balance at March 31, 2022 ​ $ 196,870 ​ $ 443,077 ​ $ 639,947 (1) Amount of goodwill as of March 31, 2022 and December 31, 2021 is net of an accumulated goodwill impairment charge of $50.0 million within the BrandLoyalty segment incurred as of December 31, 2021. As of December 31, 2021, Management’s estimated fair value of its BrandLoyalty reporting unit exceeded its carrying value by less than 10%. ​ The Company 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 March 31, 2022, 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 uncertainty in the macroeconomic environment, future deterioration in the economy, changes in profitability and cash flows, or changes in sales trends or customer demand could adversely impact the Company’s reporting units. In addition, while Russia does not constitute a material portion of the Company’s business, a significant escalation of the conflict’s current scope or expansion of economic disruption to a portion or all of the global economy could further disrupt the Company’s supply chain, broaden inflationary costs, and have a material adverse effect on its results of operations and result in an additional goodwill impairment.

INVESTMENTS IN UNCONSOLIDATED S

INVESTMENTS IN UNCONSOLIDATED SUBSIDIARY - RELATED PARTY	3 Months Ended
	Mar. 31, 2022
INVESTMENTS IN UNCONSOLIDATED SUBSIDIARY - RELATED PARTY
INVESTMENTS IN UNCONSOLIDATED SUBSIDIARY - RELATED PARTY	8. INVESTMENT IN UNCONSOLIDATED SUBSIDIARY – RELATED PARTY The Company previously owned a 99.9% interest in Comenity Canada L.P., a limited partnership, which is a consolidated subsidiary of the former Parent, and was accounted for using the equity method of accounting, as the Company exercised significant influence but did not control the entity. The investment was included in the AIR MILES Reward Program segment. 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%. Under the equity method, the Company’s share of its investee’s earnings or loss is recognized in the consolidated and combined statements of income. The Company recognized a di minimis amount of loss from investment in unconsolidated related party subsidiary for the three months ended March 31, 2021. In August 2021, the Company’s investment in Comenity Canada L.P. was sold to an affiliate of the former Parent.

DEBT

DEBT	3 Months Ended
	Mar. 31, 2022
DEBT
DEBT	9. DEBT Debt consists of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ December 31, ​ Description 2022 2021 Maturity ​ ​ (in thousands) ​ Revolving credit facility (1) ​ $ — ​ $ — ​ November 2026 Term loan A ​ 171,719 ​ 175,000 ​ November 2026 Term loan B ​ 490,625 ​ 500,000 ​ November 2027 Total long-term debt ​ $ 662,344 ​ $ 675,000 ​ ​ Less: unamortized debt issuance costs ​ ​ 20,005 ​ ​ 20,887 ​ ​ Less: current portion ​ ​ 50,625 ​ ​ 50,625 ​ ​ Long-term portion ​ $ 591,714 ​ $ 603,488 ​ ​ (1) As of March 31, 2022, availability under the revolving credit facility was $133.9 million as a result of $16.1 million in letters of credit outstanding under the Credit Agreement. As of December 31, 2021, availability under the revolving credit facility was $137.5 million as a result of $12.5 million in letters of credit outstanding under the Credit Agreement. ​ Credit Agreement The Company has a senior secured credit agreement (the “Credit Agreement”) which provides for a $175.0 million term loan A facility, a $500.0 million term loan B facility, and a revolving credit facility in the maximum amount of $150.0 million. The term loan A and revolving credit facility mature November 3, 2026. The term loan B matures November 3, 2027. In the first quarter of 2022, the Company made its quarterly principal amortization payments of $12.7 million applicable to the term loan A and term loan B. As of March 31, 2022, the Company was in compliance with its financial covenants. Uncommitted Overdraft Facility The Company has an uncommitted overdraft facility with Deutsche Bank AG that provides overdraft protection in several currencies, up to a maximum amount of €10.0 million ($11.1 million as of March 31, 2022). Interest is calculated on debit balances at a rate of 3.5% per annum plus a relevant benchmark, due and payable at the end of each quarter. There were no amounts outstanding under the uncommitted overdraft facility as of March 31, 2022 and December 31, 2021, respectively.

DERIVATIVE INSTRUMENTS

DERIVATIVE INSTRUMENTS	3 Months Ended
	Mar. 31, 2022
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS.	10. 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 March 31, 2022 was $3.0 million included in other current assets and $0.8 million included in other current liabilities in the Company’s unaudited condensed consolidated balance sheets. The fair value of the Company’s derivative instruments as of December 31, 2021 was $2.5 million included in other current assets and $0.5 million included in other current liabilities in the Company’s unaudited condensed consolidated balance sheets.

SHARE-BASED PAYMENTS

SHARE-BASED PAYMENTS	3 Months Ended
	Mar. 31, 2022
SHARE-BASED PAYMENTS
SHARE-BASED PAYMENTS	11. SHARE-BASED PAYMENTS Stock Compensation Expense ​ During the three months ended March 31, 2022, the Company awarded 511,855 service-based restricted stock units with a weighted average grant date fair value per share of $24.19 as determined on the date of grant. Service-based restricted stock unit awards typically vest ratably over a three-year period provided that the participant is employed by the Company on each such vesting date. The Company also awarded 88,033 performance-based restricted stock units with a weighted average grant date fair value per share of $24.19 as determined on the date of grant with pre-defined vesting criteria that permit a range from 0% to 150% to be earned. If the performance targets are met, the restrictions will lapse with respect to 33% of the award on February 15, 2023, an additional 33% of the award on February 15, 2024 and the final 34% of the award on February 15, 2025, provided that the participant is employed by the Company on each such vesting date. ​ Stock-based compensation expense recognized in the Company’s unaudited condensed consolidated and combined statements of income for the three months ended March 31, 2022 and 2021 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ March 31, ​ 2022 2021 ​ ​ (in thousands) Cost of operations ​ $ 1,499 ​ $ 1,448 General and administrative ​ 829 ​ 405 Total ​ $ 2,328 ​ $ 1,853 ​

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	3 Months Ended
	Mar. 31, 2022
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	12. 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 March 31, 2022 on Securities Flow Hedges Adjustments (1) Loss ​ ​ (in thousands) Balance at January 1, 2022 ​ $ 2,141 ​ $ 1,270 ​ $ (68,485) ​ $ (65,074) Changes in other comprehensive income (loss) ​ (20,801) ​ 36 ​ (17,223) ​ (37,988) Balance at March 31, 2022 ​ $ (18,660) ​ $ 1,306 ​ $ (85,708) ​ $ (103,062) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net ​ Net Unrealized ​ Foreign ​ Accumulated ​ ​ Unrealized ​ Gains (Losses) ​ Currency ​ Other ​ ​ Gains (Losses) ​ on Cash ​ Translation ​ Comprehensive Three Months Ended March 31, 2021 on Securities Flow Hedges Adjustments (1) Income (Loss) ​ ​ (in thousands) Balance at January 1, 2021 ​ $ 18,267 ​ $ (700) ​ $ (17,186) ​ $ 381 Changes in other comprehensive income (loss) ​ (6,400) ​ 917 ​ (29,699) ​ (35,182) Balance at March 31, 2021 ​ $ 11,867 ​ $ 217 ​ $ (46,885) ​ $ (34,801) (1) Primarily related to the impact of changes in the Canadian dollar and Euro foreign currency exchange rates. Other reclassifications from accumulated other comprehensive income (loss) into net income for each of the periods presented were not material.

INCOME TAXES

INCOME TAXES	3 Months Ended
	Mar. 31, 2022
INCOME TAXES
INCOME TAXES	13. INCOME TAXES For the three months ended March 31, 2022 and 2021, the Company utilized an effective tax rate of 57.5% and 32.0%, respectively, to calculate its provision for income taxes. The increase in the effective tax rate for the three months ended March 31, 2022 as compared to the respective prior year period was a result of the Company’s increased U.S. corporate expenses. The Company does not believe these expenses will be deductible; therefore, a deferred tax asset has been established with an associated valuation allowance.

FINANCIAL INSTRUMENTS

FINANCIAL INSTRUMENTS	3 Months Ended
	Mar. 31, 2022
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS	14. 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 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2022 ​ December 31, 2021 ​ ​ Carrying ​ Fair ​ Carrying ​ Fair ​ Amount Value Amount Value ​ ​ (in thousands) Financial assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Redemption settlement assets, restricted ​ $ 699,531 ​ $ 699,531 ​ $ 735,131 ​ $ 735,131 Other investments ​ 476 ​ 476 ​ 471 ​ 471 Derivative instruments ​ 3,023 ​ 3,023 ​ 2,465 ​ 2,465 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Financial liabilities ​ ​ ​ ​ ​ ​ Derivative instruments ​ 755 ​ 755 ​ 487 ​ 487 Long-term debt ​ ​ 642,339 ​ ​ 642,339 ​ ​ 654,113 ​ ​ 654,113 ​ 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. Long-term debt Financial Assets and Financial Liabilities Fair Value Hierarchy ASC 820, “Fair Value Measurement,” 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 March 31, 2022 and December 31, 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at ​ Fair Value Measurements at ​ ​ March 31, ​ March 31, 2022 Using ​ 2022 Level 1 Level 2 Level 3 ​ ​ (in thousands) Mutual funds (1) ​ $ 24,955 ​ $ 24,955 ​ $ — ​ $ — Corporate bonds (1) ​ ​ 645,320 ​ ​ — ​ ​ 645,320 ​ ​ — Marketable securities (2) ​ 476 ​ 476 ​ — ​ — Derivative instruments (3) ​ 3,023 ​ — ​ 3,023 ​ — Total assets measured at fair value ​ $ 673,774 ​ $ 25,431 ​ $ 648,343 ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Derivative instruments (3) ​ $ 755 ​ $ — ​ $ 755 ​ $ — Total liabilities measured at fair value ​ $ 755 ​ $ — ​ $ 755 ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at ​ Fair Value Measurements at ​ ​ December 31, ​ December 31, 2021 Using ​ 2021 Level 1 Level 2 Level 3 ​ ​ (in thousands) Mutual funds (1) ​ $ 25,990 ​ $ 25,990 ​ $ — ​ $ — Corporate bonds (1) ​ ​ 650,389 ​ ​ — ​ ​ 650,389 ​ ​ — Marketable securities (2) ​ 471 ​ 471 ​ — ​ — Derivative instruments (3) ​ 2,465 ​ — ​ 2,465 ​ — Total assets measured at fair value ​ $ 679,315 ​ $ 26,461 ​ $ 652,854 ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Derivative instruments (3) ​ $ 487 ​ $ — ​ $ 487 ​ $ — Total liabilities measured at fair value ​ $ 487 ​ $ — ​ $ 487 ​ $ — (1) Amounts are included in redemption settlement assets, restricted in the unaudited condensed consolidated balance sheets. (2) Amounts are included in other current assets in the unaudited condensed consolidated balance sheets. (3) Amounts are included in other current assets and other current liabilities in the unaudited condensed consolidated balance sheets . Financial Instruments Disclosed but Not Carried at Fair Value The following table provides assets and liabilities disclosed but not carried at fair value as of March 31, 2022 and December 31, 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at ​ Fair Value Measurements at ​ ​ March 31, ​ March 31, 2022 Using ​ 2022 Level 1 Level 2 Level 3 ​ ​ (in thousands) Long-term debt ​ $ 642,339 ​ $ — ​ $ 642,339 ​ $ — Total liabilities measured at fair value ​ $ 642,339 ​ $ — ​ $ 642,339 ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at ​ Fair Value Measurements at ​ ​ December 31, ​ December 31, 2021 Using ​ 2021 Level 1 Level 2 Level 3 ​ ​ (in thousands) Long-term debt ​ $ 654,113 ​ $ — ​ $ 654,113 ​ $ — Total liabilities measured at fair value ​ $ 654,113 ​ $ — ​ $ 654,113 ​ $ — ​

SEGMENT INFORMATION

SEGMENT INFORMATION	3 Months Ended
	Mar. 31, 2022
SEGMENT INFORMATION
SEGMENT INFORMATION	15. 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 its sponsors, who pay the AIR MILES Reward Program a fee per AIR MILES reward mile issued, in return for which it provides 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 March 31, 2022 ​ Reward Program ​ BrandLoyalty ​ Other ​ Eliminations ​ Total ​ ​ (in thousands) Revenues ​ $ 65,708 ​ $ 89,281 ​ $ — ​ $ (44) ​ $ 154,945 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) before income taxes ​ $ 21,722 ​ $ (3,979) ​ $ (15,350) ​ $ — ​ $ 2,393 Interest (income) expense, net ​ (136) ​ 47 ​ 9,141 ​ ​ — ​ 9,052 Depreciation and amortization ​ 6,813 ​ 2,600 ​ — ​ ​ — ​ 9,413 Stock compensation expense ​ 707 ​ 792 ​ 829 ​ ​ — ​ 2,328 Strategic transaction costs ​ ​ 299 ​ ​ 776 ​ ​ 438 ​ ​ — ​ ​ 1,513 Adjusted EBITDA (1) ​ $ 29,405 ​ $ 236 ​ $ (4,942) ​ $ — ​ $ 24,699 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ AIR MILES ​ ​ Corporate/ ​ ​ ​ ​ Three Months Ended March 31, 2021 ​ Reward Program ​ BrandLoyalty ​ Other ​ Eliminations ​ Total ​ ​ (in thousands) Revenues ​ $ 70,257 ​ $ 106,297 ​ $ — ​ $ — ​ $ 176,554 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) before income taxes ​ $ 30,162 ​ $ 1,582 ​ $ (3,686) ​ $ — ​ $ 28,058 Interest (income) expense, net ​ (182) ​ 113 ​ — ​ ​ — ​ (69) Depreciation and amortization ​ 5,784 ​ 3,250 ​ — ​ ​ — ​ 9,034 Stock compensation expense ​ 687 ​ 761 ​ 405 ​ ​ — ​ 1,853 Adjusted EBITDA (1) ​ $ 36,451 ​ $ 5,706 ​ $ (3,281) ​ $ — ​ $ 38,876 (1) Adjusted EBITDA is presented in accordance with ASC 280 as it is the primary performance metric utilized to assess performance of the segments and to determine the allocation of resources. Adjusted EBITDA is a non-GAAP financial measure equal to net income, the most directly comparable financial measure based on GAAP, plus loss from investment in unconsolidated subsidiary – related party, provision for income taxes, interest expense (income), net, depreciation and other amortization, amortization of purchased intangibles, and stock compensation expense. Adjusted EBITDA also excludes strategic transaction costs, which represent costs associated with the Separation, which were comprised of amounts associated with the Employee Matters Agreement.

SUPPLEMENTAL CASH FLOW INFORMAT

SUPPLEMENTAL CASH FLOW INFORMATION	3 Months Ended
	Mar. 31, 2022
SUPPLEMENTAL CASH FLOW INFORMATION
SUPPLEMENTAL CASH FLOW INFORMATION	16. 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 consolidated and combined statements of cash flows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ March 31, ​ 2022 2021 ​ ​ (in thousands) Cash and cash equivalents ​ $ 139,724 ​ $ 217,708 Restricted cash included within other current assets (1) ​ 10,554 ​ 2,877 Restricted cash included within redemption settlement assets, restricted (2) ​ 29,256 ​ 71,850 Total cash, cash equivalents and restricted cash ​ $ 179,534 ​ $ 292,435 (1) Includes cash restricted for travel deposits within the AIR MILES Reward Program. (2) See Note 5, “Redemption Settlement Assets, Restricted,” for additional information regarding the nature of restrictions on redemption settlement assets.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Mar. 31, 2022
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS	17. RELATED PARTY TRANSACTIONS Prior to the Separation, transactions between the Company and its former Parent 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 flow as a financing activity as net transfers to the former Parent for the three months ended March 31, 2021. In January 2021, the Company paid cash dividends to the former Parent of $124.2 million, of which $4.2 million was withheld for taxes. The former Parent allocated $3.7 million for the three months ended March 31, 2021 of corporate overhead costs that directly or indirectly benefit the Company that is 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 former Parent. See Note 8, “Investment in Unconsolidated Subsidiary - Related Party,” for additional information. As part of the Separation, the Company entered into certain agreements with its former Parent, including a Transition Services Agreement, Employee Matters Agreement, and Tax Matters Agreement. For the three months ended March 31, 2022, the Company incurred $0.6 million of expenses in connection with the Transition Services Agreement for various corporate, administrative and information technology services provided by its former Parent and have been included in general and administrative expenses in the Company’s unaudited condensed consolidated statement of income. Pursuant to the terms of the Employee Matters Agreement, the Company received a net cash payment of $1.6 million as final settlement of the estimated prorated bonus amounts established at the time of the Separation. Additionally, the Company has certain assets and liabilities associated with the Tax Matters Agreement. The Company has $20.1 million of accounts receivable as of March 31, 2022 and December 31, 2021, accrued expenses of $80.3 million and $80.0 million as of March 31, 2022 and December 31, 2021, respectively and $1.0 million of other liabilities as of March 31, 2022 and December 31, 2021 included in the Company’s consolidated balance sheets.

DESCRIPTION OF BUSINESS AND B_2

DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (Policies)	3 Months Ended
	Mar. 31, 2022
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION.
Description of the Business	Description of the Business On November 5, 2021, Bread Financial Holdings, Inc., previously named Alliance Data Systems Corporation (“former Parent”), completed the spinoff of its LoyaltyOne reportable segment (the “Separation”) into an independent, publicly traded company, Loyalty Ventures Inc. (the “Company” or “Loyalty Ventures”). Loyalty Ventures provides coalition and campaign-based loyalty solutions through the Canadian AIR MILES ®
Basis of Presentation	Basis of Presentation Prior to the Separation, the Company had operated as part of the former Parent and not as a standalone company. The unaudited condensed combined financial statements for the three months ended March 31, 2021 have been derived from the former Parent’s historical accounting records and are presented on a “carve-out” basis. The unaudited condensed combined financial statements for the three months ended March 31, 2021 also include allocations of certain general and administrative expenses from the former Parent that directly or indirectly benefited Loyalty Ventures’ business. 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. The former Parent’s third-party long-term debt and the related interest expense was not allocated for the three months ended March 31, 2021 as the Company was not the legal obligor of such debt. The former Parent’s net investment represents its interest in the recorded net assets of the Company. All significant transactions between the Company and its former Parent have been included in the accompanying unaudited condensed combined financial statements. Transactions with the former 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 “Change in former Parent’s net investment.” The unaudited consolidated financial statements for the three months ended March 31, 2022 were based on the reported results of Loyalty Ventures as a standalone company and prepared on a consolidated basis. All significant intercompany accounts and transactions between the businesses comprising the Company have been eliminated in the accompanying unaudited condensed consolidated and combined financial statements. The Company’s unaudited condensed consolidated and 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 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 consolidated and combined financial statements and accompanying notes are presented in U.S. Dollars (“USD”), the Company’s reporting currency. The unaudited condensed consolidated and 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 consolidated and combined financial statements should be read in conjunction with the consolidated and combined financial statements and the notes thereto for the year ended December 31, 2021 included in the Company’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”) on February 28, 2022.
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 consolidated financial statements. In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers,” which requires an acquirer in a business combination to recognize and measure contract assets and contract liabilities in accordance with Accounting Standards Codification (“ASC”) 606. ASU 2021-08 is effective for fiscal years beginning after December 15, 2022 and early adoption is permitted. The Company is evaluating the impact that adoption of ASU 2021-08 will have on its consolidated financial statements.

REVENUE (Tables)

REVENUE (Tables)	3 Months Ended
	Mar. 31, 2022
REVENUE
Schedule of revenue disaggregation	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ AIR MILES ​ ​ ​ ​ ​ ​ Three Months Ended March 31, 2022 ​ Reward Program ​ BrandLoyalty ​ Eliminations ​ Total ​ ​ (in thousands) Disaggregation of Revenue by Major Source: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Coalition loyalty program ​ $ 62,401 ​ $ — ​ $ — ​ $ 62,401 Campaign-based loyalty programs ​ — ​ 87,600 ​ ​ — ​ 87,600 Other ​ 41 ​ 1,681 ​ ​ (44) ​ 1,678 Revenue from contracts with customers ​ $ 62,442 ​ $ 89,281 ​ $ (44) ​ $ 151,679 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Investment income ​ 3,266 ​ — ​ ​ — ​ 3,266 Total ​ $ 65,708 ​ $ 89,281 ​ $ (44) ​ $ 154,945 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ AIR MILES ​ ​ ​ ​ ​ Three Months Ended March 31, 2021 ​ Reward Program ​ BrandLoyalty ​ Eliminations ​ Total ​ ​ (in thousands) Disaggregation of Revenue by Major Source: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Coalition loyalty program ​ $ 66,745 ​ $ — ​ $ — ​ $ 66,745 Campaign-based loyalty programs ​ — ​ 106,297 ​ ​ — ​ 106,297 Other ​ — ​ — ​ ​ — ​ — Revenue from contracts with customers ​ $ 66,745 ​ $ 106,297 ​ $ — ​ $ 173,042 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Investment income ​ 3,512 ​ — ​ ​ — ​ 3,512 Total ​ $ 70,257 ​ $ 106,297 ​ $ — ​ $ 176,554 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ AIR MILES ​ ​ ​ ​ ​ ​ Three Months Ended March 31, 2022 ​ Reward Program ​ BrandLoyalty ​ Eliminations ​ Total ​ ​ (in thousands) Disaggregation of Revenue by Geographic Region: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ United States ​ $ — ​ $ — ​ $ — ​ $ — Canada ​ 65,708 ​ 6,020 ​ ​ (44) ​ 71,684 Europe, Middle East and Africa ​ — ​ 62,689 ​ ​ — ​ 62,689 Asia Pacific ​ — ​ 18,278 ​ ​ — ​ 18,278 Other ​ — ​ 2,294 ​ ​ — ​ 2,294 Total ​ $ 65,708 ​ $ 89,281 ​ $ (44) ​ $ 154,945 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ AIR MILES ​ ​ ​ ​ ​ ​ Three Months Ended March 31, 2021 ​ Reward Program ​ BrandLoyalty ​ Eliminations ​ Total ​ ​ (in thousands) Disaggregation of Revenue by Geographic Region: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ United States ​ $ — ​ $ 1,045 ​ $ — ​ $ 1,045 Canada ​ 70,257 ​ 9,685 ​ ​ — ​ 79,942 Europe, Middle East and Africa ​ — ​ 79,414 ​ ​ — ​ 79,414 Asia Pacific ​ — ​ 14,919 ​ ​ — ​ 14,919 Other ​ — ​ 1,234 ​ ​ — ​ 1,234 Total ​ $ 70,257 ​ $ 106,297 ​ $ — ​ $ 176,554 ​
Schedule of reconciliation of contract liabilities	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Deferred Revenue ​ Service Redemption Total ​ ​ (in thousands) Balance at January 1, 2022 ​ $ 230,492 ​ $ 791,464 ​ $ 1,021,956 Cash proceeds ​ 40,352 ​ ​ 62,538 ​ 102,890 Revenue recognized (1) ​ (47,220) ​ ​ (76,573) ​ (123,793) Other ​ — ​ ​ 306 ​ 306 Effects of foreign currency translation ​ 2,399 ​ ​ 8,364 ​ 10,763 Balance at March 31, 2022 ​ $ 226,023 ​ $ 786,099 ​ $ 1,012,122 Amounts recognized in the consolidated balance sheets: ​ ​ ​ Deferred revenue (current) ​ $ 130,580 ​ $ 786,099 ​ $ 916,679 Deferred revenue (non-current) ​ $ 95,443 ​ $ — ​ $ 95,443 (1) Reported on a gross basis herein.

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2022
EARNINGS PER SHARE
Schedule of computation of basic and diluted earning per share of common stock	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ March 31, ​ 2022 2021 ​ ​ (in thousands, except per share amounts) Numerator: ​ ​ ​ ​ ​ ​ Net income ​ $ 1,018 ​ $ 19,038 ​ ​ ​ ​ ​ ​ ​ Denominator: ​ ​ ​ ​ ​ ​ Weighted average shares, basic ​ ​ 24,598 ​ ​ 24,585 Weighted average effect of dilutive securities: ​ ​ ​ ​ ​ ​ Net effect of dilutive unvested restricted stock (1) ​ ​ 28 ​ ​ — Denominator for diluted calculation ​ ​ 24,626 ​ ​ 24,585 ​ ​ ​ ​ ​ ​ ​ Basic net income per share: ​ $ 0.04 ​ $ 0.77 Diluted net income per share: ​ $ 0.04 ​ $ 0.77 (1) For the three months ended March 31, 2022, there were 0.2 million restricted stock units that were anti-dilutive. For the three months ended March 31, 2021, there are no dilutive equity instruments as there were no equity awards of Loyalty Ventures outstanding prior to the Separation.

REDEMPTION SETTLEMENT ASSETS,_2

REDEMPTION SETTLEMENT ASSETS, RESTRICTED (Tables)	3 Months Ended
	Mar. 31, 2022
REDEMPTION SETTLEMENT ASSETS, RESTRICTED.
Schedule of redemption settlement assets	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ December 31, ​ ​ 2022 ​ 2021 ​ Fair Value Fair Value ​ ​ (in thousands) Restricted cash ​ $ 29,256 ​ $ 58,752 Mutual funds ​ 24,955 ​ 25,990 Corporate bonds ​ 645,320 ​ 650,389 Total ​ $ 699,531 ​ $ 735,131
Schedule of amortized cost, unrealized gains and losses, and fair value of securities available-for-sale	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2022 ​ December 31, 2021 ​ ​ ​ Amortized ​ Unrealized ​ Unrealized ​ ​ ​ ​ Amortized ​ Unrealized ​ Unrealized ​ ​ ​ ​ ​ Cost Gains Losses Fair Value Cost Gains Losses Fair Value ​ ​ ​ (in thousands) Corporate bonds ​ ​ $ 663,980 ​ $ 783 ​ $ (19,443) ​ $ 645,320 ​ $ 648,248 ​ $ 6,389 ​ $ (4,248) ​ $ 650,389 Total ​ ​ $ 663,980 ​ $ 783 ​ $ (19,443) ​ $ 645,320 ​ $ 648,248 ​ $ 6,389 ​ $ (4,248) ​ $ 650,389
Schedule of unrealized loss position and fair value of debt securities available for sale	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2022 ​ ​ 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 $ 347,095 ​ $ (11,395) ​ $ 112,652 ​ $ (8,048) ​ $ 459,747 ​ $ (19,443) Total ​ $ 347,095 ​ $ (11,395) ​ $ 112,652 ​ $ (8,048) ​ $ 459,747 ​ $ (19,443) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 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 $ 104,052 ​ $ (1,341) ​ $ 123,382 ​ $ (2,907) $ 227,434 $ (4,248) Total ​ $ 104,052 ​ $ (1,341) ​ $ 123,382 ​ $ (2,907) ​ $ 227,434 ​ $ (4,248)
Schedule of contractual maturity of debt securities available for sale	​ ​ ​ ​ ​ ​ ​ ​ ​ Amortized Estimated ​ ​ Cost ​ Fair Value ​ ​ (in thousands) Due in one year or less ​ $ 131,903 ​ $ 132,384 Due after one year through five years ​ 515,585 ​ 497,130 Due after five years through ten years ​ 16,492 ​ 15,806 Total ​ $ 663,980 ​ $ 645,320

LEASES (Tables)

LEASES (Tables)	3 Months Ended
	Mar. 31, 2022
LEASES
Schedule of components of lease expense	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ March 31, ​ 2022 2021 ​ ​ (in thousands) Operating lease cost ​ $ 3,742 ​ $ 3,991 Short-term lease cost ​ 70 ​ 84 Variable lease cost ​ 1,134 ​ 1,131 Total ​ $ 4,946 ​ $ 5,206
Schedule of weighted average remaining lease term and discount rate	​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ March 31, ​ 2022 2021 Weighted-average remaining lease term (in years): ​ Operating leases 10.5 11.2 ​ Weighted-average discount rate: ​ ​ Operating leases 4.7 % 4.6 %
Schedule of supplemental cashflow information	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ March 31, ​ 2022 2021 ​ ​ (in thousands) Cash paid for amounts included in the measurement of lease liabilities: ​ ​ Operating cash flows from operating leases ​ $ 3,969 ​ $ 4,164 Right-of-use assets obtained in exchange for lease obligations: ​ ​ Operating leases ​ $ 852 ​ $ 7
Schedule of maturities of the lease liabilities	​ ​ ​ ​ ​ ​ ​ Operating Year Leases ​ ​ (in thousands) 2022 (excluding the three months ended March 31, 2022) ​ $ 10,683 2023 ​ 14,122 2024 ​ 13,262 2025 ​ 12,909 2026 ​ 12,540 Thereafter ​ 77,013 Total undiscounted lease liabilities ​ 140,529 Less: Amount representing interest ​ (30,693) Total present value of minimum lease payments ​ $ 109,836 ​ ​ ​ ​ Amounts recognized in the March 31, 2022 consolidated balance sheet: ​ Current operating lease liabilities ​ $ 9,414 Long-term operating lease liabilities ​ 100,422 Total ​ $ 109,836

INTANGIBLE ASSETS AND GOODWILL

INTANGIBLE ASSETS AND GOODWILL (Tables)	3 Months Ended
	Mar. 31, 2022
INTANGIBLE ASSETS AND GOODWILL
Schedule of Intangible assets	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2022 ​ ​ ​ Gross ​ Accumulated ​ ​ ​ ​ ​ Assets Amortization Net Amortization Life and Method ​ ​ (in thousands) ​ Tradenames $ 31,430 ​ $ (28,701) ​ $ 2,729 8‑15 years—straight line Total intangible assets ​ $ 31,430 ​ $ (28,701) ​ $ 2,729 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2021 ​ ​ ​ Gross ​ Accumulated ​ ​ ​ ​ ​ Assets Amortization Net Amortization Life and Method ​ ​ (in thousands) ​ Tradenames ​ $ 32,289 ​ $ (29,194) ​ $ 3,095 ​ 8‑15 years—straight line Collector database ​ ​ 55,397 ​ (55,397) ​ ​ — ​ 5 years—straight line Total intangible assets $ 87,686 ​ $ (84,591) ​ $ 3,095 ​ ​
Schedule of estimated amortization expense related to intangible assets	​ ​ ​ ​ ​ ​ ​ For the Years Ending ​ December 31, ​ ​ (in thousands) 2022 (excluding the three months ended March 31, 2022) ​ $ 852 2023 ​ 1,136 2024 ​ 583 2025 ​ 30 2026 ​ 30 Thereafter ​ 98
Schedule of changes in the carrying amount of goodwill	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ AIR MILES ​ ​ ​ ​ ​ ​ ​ Reward Program BrandLoyalty (1) Total ​ (in thousands) Balance at January 1, 2022 ​ $ 194,767 ​ $ 455,191 ​ $ 649,958 Effects of foreign currency translation ​ 2,103 ​ ​ (12,114) ​ (10,011) Balance at March 31, 2022 ​ $ 196,870 ​ $ 443,077 ​ $ 639,947 (1) Amount of goodwill as of March 31, 2022 and December 31, 2021 is net of an accumulated goodwill impairment charge of $50.0 million within the BrandLoyalty segment incurred as of December 31, 2021. As of December 31, 2021, Management’s estimated fair value of its BrandLoyalty reporting unit exceeded its carrying value by less than 10%.

DEBT (Tables)

DEBT (Tables)	3 Months Ended
	Mar. 31, 2022
DEBT
Schedule of debt	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ December 31, ​ Description 2022 2021 Maturity ​ ​ (in thousands) ​ Revolving credit facility (1) ​ $ — ​ $ — ​ November 2026 Term loan A ​ 171,719 ​ 175,000 ​ November 2026 Term loan B ​ 490,625 ​ 500,000 ​ November 2027 Total long-term debt ​ $ 662,344 ​ $ 675,000 ​ ​ Less: unamortized debt issuance costs ​ ​ 20,005 ​ ​ 20,887 ​ ​ Less: current portion ​ ​ 50,625 ​ ​ 50,625 ​ ​ Long-term portion ​ $ 591,714 ​ $ 603,488 ​ ​ (1) As of March 31, 2022, availability under the revolving credit facility was $133.9 million as a result of $16.1 million in letters of credit outstanding under the Credit Agreement. As of December 31, 2021, availability under the revolving credit facility was $137.5 million as a result of $12.5 million in letters of credit outstanding under the Credit Agreement.

SHARE-BASED PAYMENTS (Tables)

SHARE-BASED PAYMENTS (Tables)	3 Months Ended
	Mar. 31, 2022
SHARE-BASED PAYMENTS
Stock-based compensation expense recognized in statements of income	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ March 31, ​ 2022 2021 ​ ​ (in thousands) Cost of operations ​ $ 1,499 ​ $ 1,448 General and administrative ​ 829 ​ 405 Total ​ $ 2,328 ​ $ 1,853

ACCUMULATED OTHER COMPREHENSI_2

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)	3 Months Ended
	Mar. 31, 2022
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 March 31, 2022 on Securities Flow Hedges Adjustments (1) Loss ​ ​ (in thousands) Balance at January 1, 2022 ​ $ 2,141 ​ $ 1,270 ​ $ (68,485) ​ $ (65,074) Changes in other comprehensive income (loss) ​ (20,801) ​ 36 ​ (17,223) ​ (37,988) Balance at March 31, 2022 ​ $ (18,660) ​ $ 1,306 ​ $ (85,708) ​ $ (103,062) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net ​ Net Unrealized ​ Foreign ​ Accumulated ​ ​ Unrealized ​ Gains (Losses) ​ Currency ​ Other ​ ​ Gains (Losses) ​ on Cash ​ Translation ​ Comprehensive Three Months Ended March 31, 2021 on Securities Flow Hedges Adjustments (1) Income (Loss) ​ ​ (in thousands) Balance at January 1, 2021 ​ $ 18,267 ​ $ (700) ​ $ (17,186) ​ $ 381 Changes in other comprehensive income (loss) ​ (6,400) ​ 917 ​ (29,699) ​ (35,182) Balance at March 31, 2021 ​ $ 11,867 ​ $ 217 ​ $ (46,885) ​ $ (34,801) (1) Primarily related to the impact of changes in the Canadian dollar and Euro foreign currency exchange rates.

FINANCIAL INSTRUMENTS (Tables)

FINANCIAL INSTRUMENTS (Tables)	3 Months Ended
	Mar. 31, 2022
FINANCIAL INSTRUMENTS
Schedule of estimated fair value of Company's financial instruments	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2022 ​ December 31, 2021 ​ ​ Carrying ​ Fair ​ Carrying ​ Fair ​ Amount Value Amount Value ​ ​ (in thousands) Financial assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Redemption settlement assets, restricted ​ $ 699,531 ​ $ 699,531 ​ $ 735,131 ​ $ 735,131 Other investments ​ 476 ​ 476 ​ 471 ​ 471 Derivative instruments ​ 3,023 ​ 3,023 ​ 2,465 ​ 2,465 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Financial liabilities ​ ​ ​ ​ ​ ​ Derivative instruments ​ 755 ​ 755 ​ 487 ​ 487 Long-term debt ​ ​ 642,339 ​ ​ 642,339 ​ ​ 654,113 ​ ​ 654,113
Schedule of assets and liabilities carried at fair value measured on recurring basis	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at ​ Fair Value Measurements at ​ ​ March 31, ​ March 31, 2022 Using ​ 2022 Level 1 Level 2 Level 3 ​ ​ (in thousands) Mutual funds (1) ​ $ 24,955 ​ $ 24,955 ​ $ — ​ $ — Corporate bonds (1) ​ ​ 645,320 ​ ​ — ​ ​ 645,320 ​ ​ — Marketable securities (2) ​ 476 ​ 476 ​ — ​ — Derivative instruments (3) ​ 3,023 ​ — ​ 3,023 ​ — Total assets measured at fair value ​ $ 673,774 ​ $ 25,431 ​ $ 648,343 ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Derivative instruments (3) ​ $ 755 ​ $ — ​ $ 755 ​ $ — Total liabilities measured at fair value ​ $ 755 ​ $ — ​ $ 755 ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at ​ Fair Value Measurements at ​ ​ December 31, ​ December 31, 2021 Using ​ 2021 Level 1 Level 2 Level 3 ​ ​ (in thousands) Mutual funds (1) ​ $ 25,990 ​ $ 25,990 ​ $ — ​ $ — Corporate bonds (1) ​ ​ 650,389 ​ ​ — ​ ​ 650,389 ​ ​ — Marketable securities (2) ​ 471 ​ 471 ​ — ​ — Derivative instruments (3) ​ 2,465 ​ — ​ 2,465 ​ — Total assets measured at fair value ​ $ 679,315 ​ $ 26,461 ​ $ 652,854 ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Derivative instruments (3) ​ $ 487 ​ $ — ​ $ 487 ​ $ — Total liabilities measured at fair value ​ $ 487 ​ $ — ​ $ 487 ​ $ — (1) Amounts are included in redemption settlement assets, restricted in the unaudited condensed consolidated balance sheets. (2) Amounts are included in other current assets in the unaudited condensed consolidated balance sheets. (3) Amounts are included in other current assets and other current liabilities in the unaudited condensed consolidated balance sheets .
Schedule of assets and liabilities disclosed but not carried at fair value	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at ​ Fair Value Measurements at ​ ​ March 31, ​ March 31, 2022 Using ​ 2022 Level 1 Level 2 Level 3 ​ ​ (in thousands) Long-term debt ​ $ 642,339 ​ $ — ​ $ 642,339 ​ $ — Total liabilities measured at fair value ​ $ 642,339 ​ $ — ​ $ 642,339 ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at ​ Fair Value Measurements at ​ ​ December 31, ​ December 31, 2021 Using ​ 2021 Level 1 Level 2 Level 3 ​ ​ (in thousands) Long-term debt ​ $ 654,113 ​ $ — ​ $ 654,113 ​ $ — Total liabilities measured at fair value ​ $ 654,113 ​ $ — ​ $ 654,113 ​ $ —

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	3 Months Ended
	Mar. 31, 2022
SEGMENT INFORMATION
Schedule of segment information	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ AIR MILES ​ ​ Corporate/ ​ ​ ​ ​ Three Months Ended March 31, 2022 ​ Reward Program ​ BrandLoyalty ​ Other ​ Eliminations ​ Total ​ ​ (in thousands) Revenues ​ $ 65,708 ​ $ 89,281 ​ $ — ​ $ (44) ​ $ 154,945 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) before income taxes ​ $ 21,722 ​ $ (3,979) ​ $ (15,350) ​ $ — ​ $ 2,393 Interest (income) expense, net ​ (136) ​ 47 ​ 9,141 ​ ​ — ​ 9,052 Depreciation and amortization ​ 6,813 ​ 2,600 ​ — ​ ​ — ​ 9,413 Stock compensation expense ​ 707 ​ 792 ​ 829 ​ ​ — ​ 2,328 Strategic transaction costs ​ ​ 299 ​ ​ 776 ​ ​ 438 ​ ​ — ​ ​ 1,513 Adjusted EBITDA (1) ​ $ 29,405 ​ $ 236 ​ $ (4,942) ​ $ — ​ $ 24,699 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ AIR MILES ​ ​ Corporate/ ​ ​ ​ ​ Three Months Ended March 31, 2021 ​ Reward Program ​ BrandLoyalty ​ Other ​ Eliminations ​ Total ​ ​ (in thousands) Revenues ​ $ 70,257 ​ $ 106,297 ​ $ — ​ $ — ​ $ 176,554 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) before income taxes ​ $ 30,162 ​ $ 1,582 ​ $ (3,686) ​ $ — ​ $ 28,058 Interest (income) expense, net ​ (182) ​ 113 ​ — ​ ​ — ​ (69) Depreciation and amortization ​ 5,784 ​ 3,250 ​ — ​ ​ — ​ 9,034 Stock compensation expense ​ 687 ​ 761 ​ 405 ​ ​ — ​ 1,853 Adjusted EBITDA (1) ​ $ 36,451 ​ $ 5,706 ​ $ (3,281) ​ $ — ​ $ 38,876 (1) Adjusted EBITDA is presented in accordance with ASC 280 as it is the primary performance metric utilized to assess performance of the segments and to determine the allocation of resources. Adjusted EBITDA is a non-GAAP financial measure equal to net income, the most directly comparable financial measure based on GAAP, plus loss from investment in unconsolidated subsidiary – related party, provision for income taxes, interest expense (income), net, depreciation and other amortization, amortization of purchased intangibles, and stock compensation expense. Adjusted EBITDA also excludes strategic transaction costs, which represent costs associated with the Separation, which were comprised of amounts associated with the Employee Matters Agreement.

SUPPLEMENTAL CASH FLOW INFORM_2

SUPPLEMENTAL CASH FLOW INFORMATION (Tables)	3 Months Ended
	Mar. 31, 2022
SUPPLEMENTAL CASH FLOW INFORMATION
Schedule of reconciliation of cash and cash equivalents	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ March 31, ​ 2022 2021 ​ ​ (in thousands) Cash and cash equivalents ​ $ 139,724 ​ $ 217,708 Restricted cash included within other current assets (1) ​ 10,554 ​ 2,877 Restricted cash included within redemption settlement assets, restricted (2) ​ 29,256 ​ 71,850 Total cash, cash equivalents and restricted cash ​ $ 179,534 ​ $ 292,435 (1) Includes cash restricted for travel deposits within the AIR MILES Reward Program. (2) See Note 5, “Redemption Settlement Assets, Restricted,” for additional information regarding the nature of restrictions on redemption settlement assets.

REVENUE - Schedule of revenue d

REVENUE - Schedule of revenue disaggregation (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022USD ($)segment	Mar. 31, 2021USD ($)
Disaggregation of Revenue [Line Items]
Number of segments | segment	2
Revenue from contracts with customers	$ 151,679	$ 173,042
Investment income	3,266	3,512
Total	154,945	176,554
United States
Disaggregation of Revenue [Line Items]
Total		1,045
Canada
Disaggregation of Revenue [Line Items]
Total	71,684	79,942
Europe, Middle East and Africa
Disaggregation of Revenue [Line Items]
Total	62,689	79,414
Asia Pacific
Disaggregation of Revenue [Line Items]
Total	18,278	14,919
Other
Disaggregation of Revenue [Line Items]
Total	2,294	1,234
Brand Loyalty
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	89,281	106,297
Total	89,281	106,297
Brand Loyalty | United States
Disaggregation of Revenue [Line Items]
Total		1,045
Brand Loyalty | Canada
Disaggregation of Revenue [Line Items]
Total	6,020	9,685
Brand Loyalty | Europe, Middle East and Africa
Disaggregation of Revenue [Line Items]
Total	62,689	79,414
Brand Loyalty | Asia Pacific
Disaggregation of Revenue [Line Items]
Total	18,278	14,919
Brand Loyalty | Other
Disaggregation of Revenue [Line Items]
Total	2,294	1,234
AIR MILES Reward Program
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	62,442	66,745
Investment income	3,266	3,512
Total	65,708	70,257
AIR MILES Reward Program | Canada
Disaggregation of Revenue [Line Items]
Total	65,708	70,257
Operating segment | Brand Loyalty
Disaggregation of Revenue [Line Items]
Total	89,281	106,297
Operating segment | AIR MILES Reward Program
Disaggregation of Revenue [Line Items]
Total	65,708	70,257
Eliminations
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	(44)
Total	(44)
Eliminations | Canada
Disaggregation of Revenue [Line Items]
Total	(44)
Coalition loyalty program
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	62,401	66,745
Coalition loyalty program | AIR MILES Reward Program
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	62,401	66,745
Campaign-based loyalty programs
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	87,600	106,297
Campaign-based loyalty programs | Brand Loyalty
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	87,600	106,297
Other Revenue
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	1,678
Total	6,186	$ 5,467
Other Revenue | Brand Loyalty
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	1,681
Other Revenue | AIR MILES Reward Program
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	41
Other Revenue | Eliminations
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	$ (44)

REVENUE - Schedule of reconcili

REVENUE - Schedule of reconciliation of contract liabilities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Disaggregation of Revenue [Line Items]
Revenue recognized	$ 66,700
Amounts recognized in the combined balance sheets:
Deferred revenue (current)	916,679	$ 924,789
Deferred revenue (non-current)	95,443	$ 97,167
AIR MILES Reward Program
Disaggregation of Revenue [Line Items]
Beginning balance	1,021,956
Cash proceeds	102,890
Revenue recognized	(123,793)
Other	306
Effects of foreign currency translation	10,763
Ending balance	1,012,122
Amounts recognized in the combined balance sheets:
Deferred revenue (current)	916,679
Deferred revenue (non-current)	95,443
AIR MILES Reward Program | Services
Disaggregation of Revenue [Line Items]
Beginning balance	230,492
Cash proceeds	40,352
Revenue recognized	(47,220)
Effects of foreign currency translation	2,399
Ending balance	226,023
Amounts recognized in the combined balance sheets:
Deferred revenue (current)	130,580
Deferred revenue (non-current)	95,443
AIR MILES Reward Program | Redemption
Disaggregation of Revenue [Line Items]
Beginning balance	791,464
Cash proceeds	62,538
Revenue recognized	(76,573)
Other	306
Effects of foreign currency translation	8,364
Ending balance	786,099
Amounts recognized in the combined balance sheets:
Deferred revenue (current)	$ 786,099

REVENUE - Narratives (Details)

REVENUE - Narratives (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue recognized	$ 66.7
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred revenue balance expected to be recognized	$ 107.1
Deferred revenue balance expected to be recognized, period	9 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	$ 77.9
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	$ 37.2
Deferred revenue balance expected to be recognized, period	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred revenue balance expected to be recognized	$ 3.8
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	$ 100.7	$ 85.4

EARNINGS PER SHARE - Narrative

EARNINGS PER SHARE - Narrative (Details)	Nov. 05, 2021shares
EARNINGS PER SHARE
Common stock, shares outstanding	24,585,237

EARNINGS PER SHARE - Computatio

EARNINGS PER SHARE - Computation of basic and diluted earning per share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Numerator:
Net income	$ 1,018	$ 19,038
Denominator:
Weighted average shares, basic	24,598,000	24,585,000
Net effect of dilutive unvested restricted stock	28,000
Denominator for diluted calculation	24,626,000	24,585,000
Basic net income per share:	$ 0.04	$ 0.77
Diluted net income per share:	$ 0.04	$ 0.77
Dilutive equity instruments (in shares)		0
Equity awards (in shares)		0
Restricted Stock [Member]
Denominator:
Anti-dilutive restricted stock units	200,000

INVENTORIES, NET (Details)

INVENTORIES, NET (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
INVENTORIES, NET
Inventories, net	$ 213,183	$ 188,577

REDEMPTION SETTLEMENT ASSETS,_3

REDEMPTION SETTLEMENT ASSETS, RESTRICTED - Components of redemption settlement assets (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Schedule Of Redemption Settlement Assets [Line Items]
Redemption settlement assets, Fair Value, Total	$ 699,531	$ 735,131
Restricted cash
Schedule Of Redemption Settlement Assets [Line Items]
Redemption settlement assets, Fair Value, Total	29,256	58,752
Mutual funds
Schedule Of Redemption Settlement Assets [Line Items]
Redemption settlement assets, Fair Value, Total	24,955	25,990
Corporate bonds
Schedule Of Redemption Settlement Assets [Line Items]
Redemption settlement assets, Fair Value, Total	$ 645,320	$ 650,389

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	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 663,980	$ 648,248
Unrealized Gains	783	6,389
Unrealized Losses	(19,443)	(4,248)
Fair Value	645,320	650,389
Corporate bonds
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	663,980	648,248
Unrealized Gains	783	6,389
Unrealized Losses	(19,443)	(4,248)
Fair Value	$ 645,320	$ 650,389

REDEMPTION SETTLEMENT ASSETS,_5

REDEMPTION SETTLEMENT ASSETS, RESTRICTED - Unrealized losses and fair value (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, Fair Value	$ 347,095	$ 104,052
Less than 12 months, Unrealized Losses	(11,395)	(1,341)
12 Months or Greater, Fair Value	112,652	123,382
12 Months or Greater, Unrealized Losses	(8,048)	(2,907)
Fair Value	459,747	227,434
Unrealized Losses	(19,443)	(4,248)
Corporate bonds
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, Fair Value	347,095	104,052
Less than 12 months, Unrealized Losses	(11,395)	(1,341)
12 Months or Greater, Fair Value	112,652	123,382
12 Months or Greater, Unrealized Losses	(8,048)	(2,907)
Fair Value	459,747	227,434
Unrealized Losses	$ (19,443)	$ (4,248)

REDEMPTION SETTLEMENT ASSETS,_6

REDEMPTION SETTLEMENT ASSETS, RESTRICTED - Maturity (Details) $ in Thousands	Mar. 31, 2022USD ($)
Amortized Cost
Due in one year or less	$ 131,903
Due after one year through five years	515,585
Due after five years through ten years	16,492
Total	663,980
Estimated Fair Value
Due in one year or less	132,384
Due after one year through five years	497,130
Due after five years through ten years	15,806
Total	$ 645,320

REDEMPTION SETTLEMENT ASSETS,_7

REDEMPTION SETTLEMENT ASSETS, RESTRICTED - Narratives (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
REDEMPTION SETTLEMENT ASSETS, RESTRICTED.
Realized gain (loss)	$ (1,300,000)	$ (600,000)
Realized gains or losses		$ 0

LEASES - Narratives (Details)

LEASES - Narratives (Details)	Mar. 31, 2022
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
	Mar. 31, 2022	Mar. 31, 2021
Lessee Disclosure [Abstract]
Operating lease cost	$ 3,742	$ 3,991
Short-term lease cost	70	84
Variable lease cost	1,134	1,131
Total	4,946	5,206
Sublease income	$ 900	$ 500

LEASES - Other information rela

LEASES - Other information related to leases (Details)	Mar. 31, 2022	Mar. 31, 2021
LEASES
Operating leases, Weighted-average remaining lease term (in years)	10 years 6 months	11 years 2 months 12 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
	Mar. 31, 2022	Mar. 31, 2021
LEASES
Operating cash flows from operating leases	$ 3,969	$ 4,164
Operating leases, right-of-use assets obtained in exchange for lease obligations	$ 852	$ 7

LEASES - Maturities (Details)

LEASES - Maturities (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
LEASES
2022 (excluding the three months ended March 31, 2022)	$ 10,683
2023	14,122
2024	13,262
2025	12,909
2026	12,540
Thereafter	77,013
Total undiscounted lease liabilities	140,529
Less: Amount representing interest	(30,693)
Total present value of minimum lease payments	109,836
Current operating lease liabilities	9,414	$ 10,055
Long-term operating lease liabilities	100,422	$ 103,242
Total	$ 109,836

INTANGIBLE ASSETS AND GOODWIL_2

INTANGIBLE ASSETS AND GOODWILL - Intangible assets (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]
Gross Assets	$ 31,430	$ 87,686
Accumulated Amortization	(28,701)	(84,591)
Net	2,729	3,095
Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Assets	31,430	32,289
Accumulated Amortization	(28,701)	(29,194)
Net	$ 2,729	$ 3,095
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		$ 55,397
Accumulated Amortization		$ (55,397)
Amortization Life		5 years

INTANGIBLE ASSETS AND GOODWIL_3

INTANGIBLE ASSETS AND GOODWILL - Intangible assets maturity (Details) $ in Thousands	Mar. 31, 2022USD ($)
INTANGIBLE ASSETS AND GOODWILL
2022 (excluding the three months ended March 31, 2022)	$ 852
2023	1,136
2024	583
2025	30
2026	30
Thereafter	$ 98

INTANGIBLE ASSETS AND GOODWIL_4

INTANGIBLE ASSETS AND GOODWILL - Goodwill carrying amount (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Goodwill carrying amount
Balance at Beginning	$ 649,958
Effects of foreign currency translation	(10,011)
Balance at Ending	639,947	$ 649,958
AIR MILES Reward Program
Goodwill carrying amount
Balance at Beginning	194,767
Effects of foreign currency translation	2,103
Balance at Ending	196,870	194,767
Brand Loyalty
Goodwill carrying amount
Balance at Beginning	455,191
Effects of foreign currency translation	(12,114)
Balance at Ending	$ 443,077	455,191
Brand Loyalty | Operating segment
Goodwill carrying amount
Impairment		$ 50,000
Estimated fair value of Brand Loyalty reporting unit exceeded carrying value percentage		10.00%

INVESTMENTS IN UNCONSOLIDATED_2

INVESTMENTS IN UNCONSOLIDATED SUBSIDIARY - RELATED PARTY (Details) - Comenity Canada L.P [Member] - USD ($) $ in Millions	1 Months Ended
	Mar. 31, 2021	Feb. 28, 2021
Schedule of Equity Method Investments [Line Items]
Distribution	$ 0.8
Ownership percentage	98.00%	99.90%

DEBT (Details)

DEBT (Details) € in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2022USD ($)	Mar. 31, 2022EUR (€)	Dec. 31, 2021USD ($)
Debt Instrument [Line Items]
Debt instrument quarterly principal amortization payments	$ 12.7
Uncommitted overdraft facility
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 11.1	€ 10
Interest rate	3.50%	3.50%
Overdraft facility outstanding balance	$ 0		$ 0
Senior secured credit agreement | Term loan A facility
Debt Instrument [Line Items]
Principal amount of debt	175
Senior secured credit agreement | Term loan B facility
Debt Instrument [Line Items]
Principal amount of debt	500
Senior secured credit agreement | Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity	150
Revolving Credit Facility
Debt Instrument [Line Items]
Overdraft facility outstanding balance	$ 16.1		$ 12.5

DEBT - Schedule of Debt Instrum

DEBT - Schedule of Debt Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Schedule of Debt Instruments
Debt amount	$ 662,344	$ 675,000
Less: unamortized debt issuance costs	20,005	20,887
Less: current portion	50,625	50,625
Long-term portion	591,714	603,488
Revolving Credit Facility
Schedule of Debt Instruments
Availability under credit facility	133,900	137,500
Letters of outstanding	16,100	12,500
Senior Secured Credit Agreement | Term Loan A
Schedule of Debt Instruments
Debt amount	171,719	175,000
Senior Secured Credit Agreement | Term Loan B
Schedule of Debt Instruments
Debt amount	$ 490,625	$ 500,000

DERIVATIVE INSTRUMENTS (Details

DERIVATIVE INSTRUMENTS (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Other current assets
Derivatives, Fair Value [Line Items]
Derivative asset	$ 3	$ 2.5
Other current liabilities
Derivatives, Fair Value [Line Items]
Derivative liability	$ 0.8	$ 0.5

SHARE-BASED PAYMENTS (Details)

SHARE-BASED PAYMENTS (Details)	3 Months Ended
	Mar. 31, 2022$ / sharesshares
Performance-based restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted | shares	88,033
Weighted average grant date fair value per share | $ / shares	$ 24.19
Performance-based restricted stock units | Restriction lapse on February 15 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of awards restriction lapsed	33.00%
Performance-based restricted stock units | Restriction lapse on February 15 2024
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of awards restriction lapsed	33.00%
Performance-based restricted stock units | Restriction lapse on February 15 2025
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of awards restriction lapsed	34.00%
Performance-based restricted stock units | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards vesting percentage	150.00%
Performance-based restricted stock units | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards vesting percentage	0.00%
Service-based restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards vesting period	3 years
Shares granted | shares	511,855
Weighted average grant date fair value per share | $ / shares	$ 24.19

SHARE-BASED PAYMENTS - Stock-ba

SHARE-BASED PAYMENTS - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock compensation expense	$ 2,328	$ 1,853
Cost of operations
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock compensation expense	1,499	1,448
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock compensation expense	$ 829	$ 405

ACCUMULATED OTHER COMPREHENSI_3

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at Beginning	$ 146,564	$ 1,094,301
Changes in other comprehensive income (loss)	(37,988)	(35,182)
Balance at Ending	112,666	958,426
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at Beginning	(65,074)	381
Changes in other comprehensive income (loss)	(37,988)	(35,182)
Balance at Ending	(103,062)	(34,801)
Net Unrealized Gains (Losses) on Securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at Beginning	2,141	18,267
Changes in other comprehensive income (loss)	(20,801)	(6,400)
Balance at Ending	(18,660)	11,867
Net Unrealized Gains (Losses) on Cash Flow Hedges
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at Beginning	1,270	(700)
Changes in other comprehensive income (loss)	36	917
Balance at Ending	1,306	217
Foreign Currency Translation Adjustments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at Beginning	(68,485)	(17,186)
Changes in other comprehensive income (loss)	(17,223)	(29,699)
Balance at Ending	$ (85,708)	$ (46,885)

INCOME TAXES (Details)

INCOME TAXES (Details)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Effective Income Tax Rate Reconciliation, Percent [Abstract]
Effective income tax rate	57.50%	32.00%

FINANCIAL INSTRUMENT - Estimate

FINANCIAL INSTRUMENT - Estimated fair values of the company's financial instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Financial assets
Redemption settlement assets, restricted	$ 699,531	$ 735,131
Financial liabilities
Long-term debt	642,339	654,113
Carrying Amount
Financial assets
Redemption settlement assets, restricted	699,531	735,131
Other investments	476	471
Derivative instruments - Assets	3,023	2,465
Financial liabilities
Derivative instruments - Liability	755	487
Long-term debt	642,339	654,113
Fair Value
Financial assets
Redemption settlement assets, restricted	699,531	735,131
Other investments	476	471
Derivative instruments - Assets	3,023	2,465
Financial liabilities
Derivative instruments - Liability	755	487
Long-term debt	$ 642,339	$ 654,113

FINANCIAL INSTRUMENTS - Assets

FINANCIAL INSTRUMENTS - Assets and liabilities carried at fair value measured on a recurring basis (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities measured at fair value	$ 642,339	$ 654,113
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities measured at fair value	642,339	654,113
Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mutual funds	24,955	25,990
Corporate bonds	645,320	650,389
Marketable securities	476	471
Derivative instruments - Assets	3,023	2,465
Total assets measured at fair value	673,774	679,315
Derivative instruments - Liability	755	487
Total liabilities measured at fair value	755	487
Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mutual funds	24,955	25,990
Marketable securities	476	471
Total assets measured at fair value	25,431	26,461
Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Corporate bonds	645,320	650,389
Derivative instruments - Assets	3,023	2,465
Total assets measured at fair value	648,343	652,854
Derivative instruments - Liability	755	487
Total liabilities measured at fair value	755	487
Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	476	471
Derivative instruments - Assets	3,023	2,465
Derivative instruments - Liability	$ 755	$ 487

FINANCIAL INSTRUMENTS - Asset_2

FINANCIAL INSTRUMENTS - Assets and Liabilities Not Carried at Fair Value (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Financial liabilities
Long-term debt	$ 642,339	$ 654,113
Total liabilities measured at fair value	642,339	654,113
Level 2
Financial liabilities
Long-term debt	642,339	654,113
Total liabilities measured at fair value	$ 642,339	$ 654,113

SEGMENT INFORMATION (Details)

SEGMENT INFORMATION (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Segment Information
Revenues	$ 154,945	$ 176,554
Income (loss) before income taxes	2,393	28,058
Interest (income) expense, net	9,052	(69)
Depreciation and amortization	9,413	9,034
Stock compensation expense	2,328	1,853
Strategic transaction costs	1,513
Adjusted EBITDA	24,699	38,876
Eliminations
Segment Information
Revenues	(44)
AIR MILES Reward Program
Segment Information
Revenues	65,708	70,257
AIR MILES Reward Program | Operating segment
Segment Information
Revenues	65,708	70,257
Income (loss) before income taxes	21,722	30,162
Interest (income) expense, net	(136)	(182)
Depreciation and amortization	6,813	5,784
Stock compensation expense	707	687
Strategic transaction costs	299
Adjusted EBITDA	29,405	36,451
Brand Loyalty
Segment Information
Revenues	89,281	106,297
Brand Loyalty | Operating segment
Segment Information
Revenues	89,281	106,297
Income (loss) before income taxes	(3,979)	1,582
Interest (income) expense, net	47	113
Depreciation and amortization	2,600	3,250
Stock compensation expense	792	761
Strategic transaction costs	776
Adjusted EBITDA	236	5,706
Corporate/Other
Segment Information
Income (loss) before income taxes	(15,350)	(3,686)
Interest (income) expense, net	9,141
Stock compensation expense	829	405
Strategic transaction costs	438
Adjusted EBITDA	$ (4,942)	$ (3,281)

SUPPLEMENTAL CASH FLOW INFORM_3

SUPPLEMENTAL CASH FLOW INFORMATION - Reconciliation of cash and cash equivalents (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021	Dec. 31, 2020
Cash and cash equivalents	$ 139,724	$ 167,601	$ 217,708
Total cash, cash equivalents and restricted cash	179,534	$ 232,602	292,435	$ 337,525
Other current assets
Restricted cash	10,554		2,877
Redemption settlement assets
Restricted cash	$ 29,256		$ 71,850

RELATED PARTY TRANSACTIONS - Ot

RELATED PARTY TRANSACTIONS - Other information (Details) - Former parent - USD ($) $ in Millions	1 Months Ended	3 Months Ended
	Jan. 31, 2021	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Related Party Transactions
Corporate overhead costs			$ 3.7
Dividends	$ 124.2
Dividend withheld for taxes	$ 4.2
Amount of expenses incurred in relation to Transition services agreement		$ 0.6
Employee matters agreement prorated bonus payment from parent		1.6
Accounts receivable from related party		20.1		$ 20.1
Accrued Liabilities
Related Party Transactions
Contractual liabilities under Tax Matters Agreement		80.3		80
Other Liabilities
Related Party Transactions
Contractual liabilities under Tax Matters Agreement		$ 1		$ 1