Quarterly report pursuant to Section 13 or 15(d)

Revenue (Notes)

v3.19.2
Revenue (Notes)
6 Months Ended
Aug. 03, 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 and six months ended August 3, 2019 and August 4, 2018:
 
Three Months Ended
 
Six Months Ended
($ in millions)
August 3, 2019
 
August 4, 2018
 
August 3, 2019
 
August 4, 2018
Women’s apparel
$
664

 
26
%
 
$
695

 
25
%
 
$
1,254

 
25
%
 
$
1,309

 
25
%
Men’s apparel and accessories
537

 
21
%
 
563

 
20
%
 
1,015

 
21
%
 
1,063

 
20
%
Women’s accessories, including Sephora
341

 
14
%
 
371

 
13
%
 
690

 
14
%
 
749

 
14
%
Home
246

 
10
%
 
361

 
13
%
 
551

 
11
%
 
715

 
13
%
Children’s, including toys
216

 
9
%
 
241

 
9
%
 
416

 
8
%
 
448

 
8
%
Footwear
194

 
8
%
 
202

 
7
%
 
375

 
8
%
 
391

 
7
%
Jewelry
155

 
6
%
 
151

 
6
%
 
322

 
6
%
 
313

 
6
%
Services and other
156

 
6
%
 
178

 
7
%
 
325

 
7
%
 
358

 
7
%
Total net sales
$
2,509

 
100
%
 
$
2,762

 
100
%
 
$
4,948

 
100
%
 
$
5,346

 
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)
August 3, 2019
 
August 4, 2018
 
February 2, 2019
Gift cards
$
114

 
$
116

 
$
140

Loyalty rewards
63

 
62

 
60

Total contract liability
$
177

 
$
178

 
$
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 six 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
182

 
148

Net sales from amounts included in contract liability opening balances
(56
)
 
(59
)
Net sales from current period usage
(149
)
 
(128
)
Ending balance
$
177

 
$
178