The revenue recognition note from the $10-$K for current fiscal year includes the following.

$$ We record almost all retail store revenues at the point of sale.

$$ Digital channel sales include shipping revenue and are recorded upon delivery to the guest or upon guest pickup at the store.

$$ Total revenues do not include sales tax because we are a pass$-$through conduit for collecting and remitting sales taxes.

$$ Generally, guests may return national brand merchandise within $90$ days of purchase and owned and exclusive brands within one year of purchase. Revenues are recognized net of expected returns, which we estimate using historical return patterns as a percentage of sales and our expectations of future returns.

$$ Revenue from gift card sales is recognized upon gift card redemption. Our gift cards do not expire. Based on historical redemption rates, a small and relatively stable percentage of gift cards will never be redeemed, referred to as $$breakage$.$ Estimated breakage revenue is recognized over time in proportion to actual gift card redemptions.

$$ Guests receive a $5$ percent discount on virtually all purchases and receive free shipping at Target.com when they use their REDcard. This discount is included as a sales reduction in our Consolidated Statements of Operations and was $$1,430$ million for the current fiscal year, $$1,400$ million for the prior fiscal year, and $$1,349$ million for the fiscal year two years prior.

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