1. Revenue Recognition Policies- Summarize your companys revenue recognition policies

Revenue recognition. The Company recognizes revenue at the point of sale, net of sales taxes collected and an allowance for estimated future returns, as required by Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers, or Accounting Standards Codification (ASC) 606. The Company recognizes allowances for estimated sales returns on a gross basis as a reduction to sales. The asset recorded for the expected recovery of merchandise inventory was $11.8 million, $10.5 million, and $10.7 million and the liability recorded for the refund due to the customer was $23.1 million, $20.3 million, and $21.2 million as of January 28, 2023, January 29, 2022, and January 30, 2021, respectively. Sales taxes collected that are outstanding and the allowance for estimated future returns are included in Accrued expenses and other and the asset for expected recovery of merchandise is included in Prepaid expenses and other in the Consolidated Balance Sheets.

Sales of stored value cards are deferred until they are redeemed for the purchase of Company merchandise. The Companys stored value cards do not have expiration dates. Based upon historical redemption rates, a small percentage of stored value cards will never be redeemed, which represents breakage. Breakage is estimated and recognized as revenue based upon the historical pattern of customer redemptions. Breakage was not material to the consolidated financial statements in fiscal 2022, 2021, and 2020.

The following sales mix table disaggregates revenue by merchandise category for fiscal 2022, 2021, and 2020:

		2022	1	2021		2020
Home Accents and Bed and Bath		26	%		26	%		28	%
Ladies		24	%		25	%		23	%
Mens		15	%		14	%		14	%
Accessories, Lingerie, Fine Jewelry, and Cosmetics		14	%		14	%		14	%
Shoes		12	%		12	%		12	%
Childrens		9	%		9	%		9	%
Total		100	%		100	%		100	%