Revenue Recognition

12 Months Ended

Jan. 29, 2022

Revenue Recognition and Deferred Revenue [Abstract]

Revenue Recognition

Revenue Recognition

Accounts receivable, net from revenue-generating activities were $101 million as of January 29, 2022 and $74 million as of January 30, 2021. 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 $258 million as of January 29, 2022 and $256 million as of January 30, 2021. The Company recognized $143 million as revenue in 2021 from amounts recorded as deferred revenue at the beginning of the period. As of January 29, 2022, the Company recorded deferred revenues of $250 million within Accrued Expenses and Other, and $8 million within Other Long-term Liabilities on the Consolidated and Combined Balance Sheet.

The following table provides a disaggregation of Net Sales for 2021, 2020 and 2019:

	2021		2020		2019
	(in millions)
Stores — North America	$	4,194	$	2,795	$	5,112
Direct	2,114		2,223		1,693
International (a)	477		395		704
Total Net Sales	$	6,785	$	5,413	$	7,509

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(a)Results include Greater China, royalties associated with franchised stores, wholesale sales and company-operated stores in the U.K. (before our joint venture with Next).

The Company recognized Net Sales of $132 million, $135 million and $194 million for 2021, 2020 and 2019, respectively, related to revenue earned in connection with its U.S. private label credit card arrangement.

The Company’s international net sales include sales from company-operated stores, royalty revenue from franchise and license arrangements, wholesale revenues and direct sales shipped internationally. 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 $736 million, $643 million and $1.000 billion for 2021, 2020 and 2019, respectively.