Revenue Recognition (Notes)

3 Months Ended

May 04, 2019

Revenue Recognition and Deferred Revenue [Abstract]

Revenue from Contract with Customer [Text Block]

Revenue Recognition

Accounts receivable, net from revenue-generating activities were $182 million as of May 4, 2019, $150 million as of February 2, 2019 and $147 million as of May 5, 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 75 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 $280 million as of May 4, 2019, $331 million as of February 2, 2019 and $269 million as of May 5, 2018. The Company recognized $120 million as revenue in the first quarter of 2019 from amounts recorded as deferred revenue at the beginning of the period. As of May 4, 2019, the Company recorded deferred revenue of $265 million within Accrued Expenses and Other, and $15 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 2019 and 2018:



	First Quarter
	2019		2018
	(in millions)
Victoria’s Secret Stores (a)	$	1,149	$	1,236
Victoria’s Secret Direct	362		353
Total Victoria’s Secret	1,511		1,589
Bath & Body Works Stores (a)	715		649
Bath & Body Works Direct	156		112
Total Bath & Body Works	871		761
Victoria's Secret and Bath & Body Works International (b)	135		135
Other (c)	112		141
Total Net Sales	$	2,629	$	2,626

_______________


(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.