Revenue Recognition

3 Months Ended

May 02, 2020

Revenue Recognition and Deferred Revenue [Abstract]

Revenue Recognition

Revenue Recognition

Accounts receivable, net from revenue-generating activities were $142 million as of May 2, 2020, $152 million as of February 1, 2020 and $182 million as of May 4, 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. Deferred revenue was $348 million as of May 2, 2020, $342 million as of February 1, 2020 and $280 million as of May 4, 2019. The Company recognized $93 million as revenue during the first quarter of 2020 from amounts recorded as deferred revenue at the beginning of the period. As of May 2, 2020, the Company recorded deferred revenue of $336 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 the first quarter of 2020 and 2019:

	First Quarter
	2020		2019
	(in millions)
Bath & Body Works Stores (a)	$	424	$	715
Bath & Body Works Direct	289		156
Total Bath & Body Works	713		871
Victoria’s Secret Stores (a)	514		1,149
Victoria’s Secret Direct	308		362
Total Victoria’s Secret	822		1,511
Victoria's Secret and Bath & Body Works International (b)	65		135
Other (c)	54		112
Total Net Sales	$	1,654	$	2,629

 _______________

(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.