Revenue Recognition In May 2014, the FASB issued ASC 606, Revenue From Contracts With Customers (ASC 606), a comprehensive revenue recognition model that expands disclosure requirements and requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The Company adopted ASC 606 on February 4, 2018. Results for reporting periods beginning on or after February 4, 2018 are presented under ASC 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting. The Company recorded a net increase to opening retained earnings of $0.2 million as of February 4, 2018 due to the cumulative impact of adoption. The impact was the result of accounting for customer loyalty programs using a relative stand-alone selling price method versus incremental cost method. The Company defers a portion of the sales revenue attributed to the loyalty points and recognizes revenue when the points are redeemed or expire, consistent with the requirements of ASC 606. Refer to the Customer Loyalty Program caption below for additional information. Revenue is recorded for store sales upon the purchase of merchandise by customers. The Companys e-commerce operation records revenue upon the customer receipt date of the merchandise. Shipping and handling revenues are included in total net revenue. Sales tax collected from customers is excluded from revenue and is included as part of accrued income and other taxes on the Companys Consolidated Balance Sheets. Revenue is recorded net of estimated and actual sales returns and promotional price reductions. The Company records the impact of adjustments to its sales return reserve quarterly within total net revenue and cost of sales. The sales return reserve reflects an estimate of sales returns based on projected merchandise returns determined using historical average return percentages. Revenue is not recorded on the issuance of gift cards. A current liability is recorded upon issuance, and revenue is recognized when the gift card is redeemed for merchandise. Additionally, the Company recognizes revenue on unredeemed gift cards based on an estimate of the amounts that will not be redeemed (gift card breakage), determined through historical redemption trends. Gift card breakage revenue is recognized in proportion to actual gift card redemptions as a component of total net revenue. For further information on the Companys gift card program, refer to the Gift Cards caption below. The Company recognizes royalty revenue generated from its license or franchise agreements based on a percentage of merchandise sales by the licensee/franchisee. This revenue is recorded as a component of total net revenue when earned and collection is probable. The following table sets forth the approximate consolidated percentage of total net revenue attributable to each merchandise group for each of the periods indicated: 13 Weeks Ended 39 Weeks Ended November 2, November 3, November 2, November 3, 2019 2018 2019 2018 Mens apparel and accessories 29 % 32 % 28 % 31 % Womens apparel and accessories (excluding Aerie) 54 % 53 % 54 % 54 % Aerie 17 % 15 % 18 % 15 % Total 100 % 100 % 100 % 100 % The following table disaggregates the Companys Total Net Revenue by geography: 13 Weeks Ended 39 Weeks Ended (In thousands) November 2, 2019 November 3, 2018 November 2, 2019 November 3, 2018 Total net revenue: United States $ 935,203 $ 877,099 $ 2,577,685 $ 2,427,749 Foreign (1) 131,209 126,608 415,896 363,773 Total net revenue $ 1,066,412 $ 1,003,707 $ 2,993,581 $ 2,791,522 (1) Amounts represent sales from American Eagle and Aerie international retail stores, e-commerce sales that are billed and/or shipped to foreign countries, and international franchise royalty revenue.