REVENUE (Notes)

3 Months Ended

Apr. 30, 2023

Revenue [Abstract]

REVENUE

REVENUE

The Company generates revenue primarily from sales of finished products under its owned trademarks through its wholesale and retail operations. The Company also generates royalty and advertising revenue from licensing rights to its trademarks to third parties. Revenue is recognized upon the transfer of control of products or services to the Company’s customers in an amount that reflects the consideration to which it expects to be entitled in exchange for those products or services.

Performance Obligations Under License Agreements

As of April 30, 2023, the contractual minimum fees on the portion of all license agreements not yet satisfied totaled $921.7 million, of which the Company expects to recognize $222.1 million as revenue during the remainder of 2023, $258.4 million in 2024 and $441.2 million thereafter. The Company elected not to disclose the remaining performance obligations for contracts that have an original expected term of one year or less and expected sales-based percentage fees for the portion of all license agreements not yet satisfied.

Deferred Revenue

Changes in deferred revenue, which primarily relate to customer loyalty programs, gift cards and license agreements for the thirteen weeks ended April 30, 2023 and May 1, 2022 were as follows:

	Thirteen Weeks Ended
(In millions)	4/30/23		5/1/22
Deferred revenue balance at beginning of period	$	54.3	$	44.9
Net additions to deferred revenue during the period	44.8		25.0
Reductions in deferred revenue for revenue recognized during the period (1)	(39.5)		(32.3)
Deferred revenue balance at end of period	$	59.6	$	37.6

(1) Represents the amount of revenue recognized during the period that was included in the deferred revenue balance at the beginning of the period and does not contemplate revenue recognized from amounts deferred during the period.

The Company also had long-term deferred revenue liabilities included in other liabilities in its Consolidated Balance Sheets of $11.4 million, $12.1 million and $14.1 million as of April 30, 2023, January 29, 2023 and May 1, 2022, respectively.

Please see Note 16, “Segment Data,” for information on the disaggregation of revenue by segment and distribution channel.