Address PR comments

src/chronos/chronos2/preprocess.py

@@ -117,7 +117,7 @@ def from_dataframe(
     ...
 
 
-def from_dict_list(
+def from_list_of_dicts(
     data: list[dict],
     prediction_length: int,
     use_target_encoding: bool = True,
@@ -256,13 +256,12 @@ def _target_encode(
     -----------
     - id_codes and cat_codes are non-negative integers in [0, n_items) and [0, n_categories)
     - future_id_codes (if provided) are valid item IDs that appear in id_codes
-    - future_cat_codes may contain -1 for unseen categories (encoded as NaN)
+    - future_cat_codes are non-negative integers in [0, n_categories)
 
     Edge cases
     ----------
     - NaN values in target are excluded from sum/count computations
-    - Unseen (item, category) pairs get the item mean as fallback (via smoothing formula)
-    - Completely unseen categories in future (cat_code=-1) get the item mean
+    - Unseen (item, category) pairs naturally get item_mean via the smoothing formula
 
     Parameters
     ----------
@@ -280,7 +279,6 @@ def _target_encode(
         Item ID for each future row, shape: (n_future_rows,). Optional.
     future_cat_codes
         Category codes for future rows, shape: (n_future_rows,). Optional.
-        Use -1 for categories not seen in past (will be encoded as NaN).
     smooth
         Smoothing parameter. Higher values give more weight to item mean vs category mean.
 
@@ -308,12 +306,7 @@ def _target_encode(
 
     encoded_future = None
     if future_id_codes is not None and future_cat_codes is not None:
-        valid_future = future_cat_codes >= 0
-        future_combined = np.where(valid_future, future_id_codes * n_categories + future_cat_codes, 0)
-        encoded_future = np.where(
-            valid_future,
-            lookup[future_combined],
-            item_means[future_id_codes]
-        ).astype(np.float32)
+        future_combined = future_id_codes * n_categories + future_cat_codes
+        encoded_future = lookup[future_combined].astype(np.float32)
 
     return encoded_past, encoded_future