Revenue Recognition (Notes)

12 Months Ended

Feb. 01, 2020

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer [Text Block]

Revenue Recognition

In the first quarter of 2018, the Company adopted ASC 606, Revenue from Contracts with Customers, using the modified retrospective approach. Results for 2019 and 2018 are presented under ASC 606, while results for 2017 have not been adjusted and continue to be presented under the accounting standards in effect in that period.

Accounts receivable, net from revenue-generating activities were $152 million as of February 1, 2020 and $150 million as of February 2, 2019. 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, which are all impacted by seasonal and holiday-related sales patterns. The balance of deferred revenue was $342 million as of February 1, 2020 and $331 million as of February 2, 2019. The Company recognized $218 million as revenue in 2019 from amounts recorded as deferred revenue at the beginning of the period. As of February 1, 2020, the Company recorded deferred revenues of $330 million within Accrued Expenses and Other, and $12 million within Other Long-term Liabilities on the Consolidated Balance Sheet.

The following table provides a disaggregation of Net Sales for 2019, 2018 and 2017:

	2019		2018		2017 (a)
	(in millions)
Victoria’s Secret Stores (b)	$	5,112	$	5,628	$	5,879
Victoria’s Secret Direct	1,693		1,747		1,508
Total Victoria’s Secret	6,805		7,375		7,387
Bath & Body Works Stores (b)	4,212		3,907		3,589
Bath & Body Works Direct	958		724		559
Total Bath & Body Works	5,170		4,631		4,148
Victoria's Secret and Bath & Body Works International (c)	600		605		502
Other (d)	339		626		595
Total Net Sales	$	12,914	$	13,237	$	12,632

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(a) 2017 represents a 53-week fiscal year.

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

(c) 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.

(d)

Includes wholesale revenues from the Company's sourcing function. Results for 2018 and 2017 also include store and direct sales for Henri Bendel and La Senza.