Quarterly report pursuant to Section 13 or 15(d)

Revenue (Notes)

v3.19.1
Revenue (Notes)
3 Months Ended
May 04, 2019
Revenue from Contract with Customer [Abstract]  
Revenue from Contract with Customer [Text Block]
Revenue

Our contracts with customers primarily consist of sales of merchandise and services at the point of sale, sales of gift cards to a customer for a future purchase, customer loyalty rewards that provide discount rewards to customers based on purchase activity, and certain licensing and profit sharing arrangements involving the use of our intellectual property by others.
Revenue includes Total net sales and Credit income and other. Net sales are categorized by merchandise and service sale groupings as we believe it best depicts the nature, amount, timing and uncertainty of revenue and cash flow.

The following table provides the components of Net sales for the three months ended May 4, 2019 and May 5, 2018:
 
Three Months Ended
($ in millions)
May 4, 2019
 
May 5, 2018
Women’s apparel
$
590

 
24
%
 
$
614

 
24
%
Men’s apparel and accessories
478

 
20
%
 
500

 
19
%
Women’s accessories, including Sephora
349

 
14
%
 
378

 
15
%
Home
305

 
13
%
 
354

 
14
%
Children’s, including toys
200

 
8
%
 
207

 
8
%
Footwear
181

 
7
%
 
189

 
7
%
Jewelry
167

 
7
%
 
162

 
6
%
Services and other
169

 
7
%
 
180

 
7
%
Total net sales
$
2,439

 
100
%
 
$
2,584

 
100
%

Credit income and other encompasses the revenue earned from the agreement with Synchrony Financial (Synchrony) associated with our private label credit card and co-branded MasterCard® programs.

The Company has contract liabilities associated with the sales of gift cards and our customer loyalty program.
The liabilities are included in Other accounts payable and accrued expenses in the unaudited Interim Consolidated Balance Sheets and were as follows:
(in millions)
May 4, 2019
 
May 5, 2018
 
February 2, 2019
Gift cards
$
121

 
$
124

 
$
140

Loyalty rewards
61

 
71

 
60

Total contract liability
$
182

 
$
195

 
$
200



Contract liability includes consideration received for gift card and loyalty related performance obligations which have not been satisfied as of a given date.

A rollforward of the amounts included in contract liability for the first three months of 2019 and 2018 are as follows:
(in millions)
2019
 
2018
Beginning balance
$
200

 
$
217

Current period gift cards sold and loyalty reward points earned
78

 
74

Net sales from amounts included in contract liability opening balances
(36
)
 
(38
)
Net sales from current period usage
(60
)
 
(58
)
Ending balance
$
182

 
$
195