Revenues

General merchandise sales represent the vast majority of our revenues. We also earn revenues from a variety of other sources, most notably credit card profit sharing income from our arrangement with TD Bank Group (TD).



Revenues	Three Months Ended
(millions)	May 4, 2019		May 5, 2018
Apparel and accessories ^(a)	$	3,290	$	3,113
Beauty and household essentials ^(a)	4,971		4,617
Food and beverage	3,722		3,587
Hardlines	2,385		2,313
Home furnishings and décor	3,001		2,903
Other	32		23
Sales	17,401		16,556

Credit card profit sharing	160		167
Other	66		58
Other revenue	226		225

Total revenue	$	17,627	$	16,781


^(a)	For the three months ended May 4, 2019, and May 5, 2018, we reclassified certain non-apparel baby merchandise sales totaling $456 million and $390 million, respectively, from Apparel and Accessories to Beauty and Household Essentials.

We record almost all retail store revenues at the point of sale. Digitally originated sales may include shipping revenue and are recorded upon delivery to the guest or upon guest pickup at the store. Sales are recognized net of expected returns, which we estimate using historical return patterns and our expectation of future returns. As of May 4, 2019, February 2, 2019, and May 5, 2018, the accrual for estimated returns was $124 million, $116 million, and $119 million, respectively. We have not historically had material adjustments to our returns estimates.

Revenue from Target gift card sales is recognized upon gift card redemption, which is typically within one year of issuance.



(millions)	February 2, 2019		Gift Cards Issued During Current Period But Not Redeemed ^(a)		Revenue Recognized From Beginning Liability			May 4, 2019
Gift card liability	$	840	$	213	$	(322	)	$	731


^(a)	Net of estimated breakage.

Credit card profit sharing – We receive payments under a credit card program agreement with TD. Under the agreement, we receive a percentage of the profits generated by the Target Credit Card and Target MasterCard receivables in exchange for performing account servicing and primary marketing functions. TD underwrites, funds, and owns Target Credit Card and Target MasterCard receivables, controls risk management policies, and oversees regulatory compliance.