Quarterly report pursuant to Section 13 or 15(d)

Revenue (Notes)

v3.19.3
Revenue (Notes)
9 Months Ended
Nov. 02, 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 nine months ended November 2, 2019 and November 3, 2018:
 
Three Months Ended
 
Nine Months Ended
($ in millions)
November 2, 2019
 
November 3, 2018
 
November 2, 2019
 
November 3, 2018
Women’s apparel
$
514

 
21
%
 
$
544

 
21
%
 
$
1,596

 
22
%
 
$
1,678

 
21
%
Men’s apparel and accessories
524

 
22
%
 
552

 
21
%
 
1,539

 
21
%
 
1,615

 
20
%
Women’s accessories, including Sephora
324

 
14
%
 
353

 
13
%
 
1,092

 
15
%
 
1,173

 
15
%
Home
229

 
10
%
 
357

 
13
%
 
780

 
11
%
 
1,073

 
13
%
Children’s, including toys
253

 
11
%
 
280

 
11
%
 
669

 
9
%
 
728

 
9
%
Footwear
281

 
12
%
 
296

 
11
%
 
809

 
11
%
 
852

 
11
%
Jewelry
106

 
4
%
 
108

 
4
%
 
368

 
5
%
 
359

 
4
%
Services and other
153

 
6
%
 
163

 
6
%
 
479

 
6
%
 
521

 
7
%
Total net sales
$
2,384

 
100
%
 
$
2,653

 
100
%
 
$
7,332

 
100
%
 
$
7,999

 
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)
November 2, 2019
 
November 3, 2018
 
February 2, 2019
Gift cards
$
110

 
$
111

 
$
140

Loyalty rewards
63

 
60

 
60

Total contract liability
$
173

 
$
171

 
$
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 nine 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
251

 
232

Net sales from amounts included in contract liability opening balances
(71
)
 
(75
)
Net sales from current period usage
(207
)
 
(203
)
Ending balance
$
173

 
$
171