Revenue Recognition

6 Months Ended

Aug. 01, 2020

Revenue Recognition and Deferred Revenue [Abstract]

Revenue Recognition

Revenue Recognition

Accounts receivable, net from revenue-generating activities were $186 million as of August 1, 2020, $152 million as of February 1, 2020 and $174 million as of August 3, 2019. 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. As a result of the COVID-19 pandemic, the Company has extended the payment terms for certain partners.

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 $316 million as of August 1, 2020, $342 million as of February 1, 2020 and $276 million as of August 3, 2019. The Company recognized $132 million as revenue year-to-date 2020 from amounts recorded as deferred revenue at the beginning of the year. As of August 1, 2020, the Company recorded deferred revenue of $304 million within Accrued Expenses and Other, and $12 million within Other Long-term Liabilities on the Consolidated Balance Sheet.

The following table provides a disaggregation of Net Sales for the second quarter and year-to-date 2020 and 2019:

	Second Quarter				Year-to-Date
	2020		2019		2020		2019
	(in millions)
Bath & Body Works Stores (a)	$	678	$	883	$	1,102	$	1,597
Bath & Body Works Direct	519		178		807		335
Total Bath & Body Works	1,197		1,061		1,909		1,932
Victoria’s Secret Stores (a)	364		1,233		877		2,381
Victoria’s Secret Direct	614		373		922		735
Total Victoria’s Secret	978		1,606		1,799		3,116
Victoria's Secret and Bath & Body Works International (b)	80		155		146		289
Other (c)	64		80		120		193
Total Net Sales	$	2,319	$	2,902	$	3,974	$	5,530

 _______________

(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.