Revenue Recognition

9 Months Ended

Nov. 02, 2019

Revenue Recognition and Deferred Revenue [Abstract]

Accounts receivable, net from revenue-generating activities were $147 million as of November 2, 2019, $150 million as of February 2, 2019 and $160 million as of November 3, 2018. Accounts receivable primarily relate to amounts due from the Company's franchise, license and wholesale partners. Under these arrangements, payment terms are typically 60 to 90 days.

The Company records deferred revenue when cash payments are received in advance of transfer of control of goods or services. Deferred revenue primarily relates to gift cards, loyalty and private label credit card programs and direct channel shipments not yet delivered, which are all impacted by seasonal and holiday-related sales patterns. Deferred revenue was $280 million as of November 2, 2019, $331 million as of February 2, 2019 and $271 million as of November 3, 2018. The Company recognized $190 million as revenue year-to-date in 2019 from amounts recorded as deferred revenue at the beginning of the period. As of November 2, 2019, the Company recorded deferred revenue of $267 million within Accrued Expenses and Other, and $13 million within Other Long-term Liabilities on the Consolidated Balance Sheet.

The following table provides a disaggregation of Net Sales for the third quarter and year-to-date 2019 and 2018:



	Third Quarter				Year-to-Date
	2019		2018		2019		2018
	(in millions)
Victoria’s Secret Stores (a)	$	1,081	$	1,178	$	3,462	$	3,778
Victoria’s Secret Direct	331		351		1,067		1,065
Total Victoria’s Secret	1,412		1,529		4,529		4,843
Bath & Body Works Stores (a)	872		808		2,469		2,281
Bath & Body Works Direct	192		148		527		399
Total Bath & Body Works	1,064		956		2,996		2,680
Victoria's Secret and Bath & Body Works International (b)	134		134		423		415
Other (c)	67		156		259		447
Total Net Sales	$	2,677	$	2,775	$	8,207	$	8,385

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(a)	Includes company-owned stores in the U.S. and Canada.


(b)	Includes company-owned stores in the U.K., Ireland and Greater China, direct sales in Greater China and wholesale sales, royalties and other fees associated with non-company owned stores.

(c)

Includes wholesale revenues from the Company's sourcing function. Results for 2018 also include store and direct sales for La Senza and Henri Bendel.