XML 22 R10.htm IDEA: XBRL DOCUMENT v3.24.1.1.u2
Revenue Recognition
 3 Months Ended
May 04, 2024
Revenue Recognition and Deferred Revenue [Abstract]  
Revenue Recognition Revenue Recognition
Accounts receivable, net from revenue-generating activities were $74 million as of May 4, 2024, $84 million as of February 3, 2024 and $79 million as of April 29, 2023. These accounts receivable primarily relate to amounts due from the Company’s franchise, license and wholesale partners. Under these arrangements, payment terms are typically 45 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 points and rewards and direct channel shipments, which are all impacted by seasonal and holiday-related sales patterns. Deferred revenue, which is recorded within Accrued Expenses and Other on the Consolidated Balance Sheets, was $178 million as of May 4, 2024, $198 million as of February 3, 2024 and $171 million as of April 29, 2023. The Company recognized $71 million as revenue during the first quarter of 2024 from amounts recorded as deferred revenue at the beginning of the Company’s fiscal year.
The following table provides a disaggregation of Net Sales for the first quarters of 2024 and 2023:
First Quarter
20242023
(in millions)
Stores - U.S. and Canada (a)$1,065 $1,034 
Direct - U.S. and Canada261 280 
International (b)58 82 
Total Net Sales$1,384 $1,396 
_______________
(a)Results include fulfilled buy online-pick up in store orders.
(b)Results include royalties associated with franchised stores and wholesale sales.
The Company’s net sales outside of the U.S. include sales from Company-operated stores and its e-commerce site in Canada, royalties associated with franchised stores and wholesale sales. Certain of these sales are subject to the impact of fluctuations in foreign currency. The Company’s net sales outside of the U.S. totaled $126 million and $145 million for the first quarters of 2024 and 2023, respectively