That's not how accounting works. Revenues are not recognized until they are earned. It doesn't count as revenue until it's either used (someone buys a coffee) o

That's not how accounting works. Revenues are not recognized until they are earned. It doesn't count as revenue until it's either used (someone buys a coffee) or it's deemed likely to never be redeemed. The latter calculation is likely an aggregate across all cards, not based on a per-card level prediction. Breakage refers to the portion of gift card balances that remains unspent by customers, which is eventually recognized as revenue by the issuing company. It is calculated based on historical redemption patterns and the probability that a gift card will never be used. The recognition of breakage revenue, however, doesn't affect a customer's ability to use an unexpired gift card. The card's value remains intact and can still be redeemed for goods or services, regardless of the breakage revenue recognition by the company.