Annual report pursuant to Section 13 and 15(d)

Revenue (Notes)

v3.20.1
Revenue (Notes)
12 Months Ended
Feb. 01, 2020
Revenue [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.

Based on how we categorized our merchandise divisions in 2019, the components of Net sales for 2019 and 2018 were as follows:
($ in millions)
2019
 
2018
Men’s apparel and accessories
$
2,320

 
22
%
 
$
2,432

 
20
%
Women’s apparel
2,195

 
21
%
 
2,293

 
20
%
Women’s accessories, including Sephora
1,516

 
14
%
 
1,637

 
14
%
Home
1,191

 
11
%
 
1,606

 
14
%
Footwear and handbags
1,191

 
11
%
 
1,255

 
11
%
Kids’, including toys
991

 
9
%
 
1,070

 
9
%
Jewelry
641

 
6
%
 
652

 
6
%
Services and other
671

 
6
%
 
719

 
6
%
Total net sales
$
10,716

 
100
%
 
$
11,664

 
100
%

Credit income and other encompasses the revenue earned from the agreement with 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 Consolidated Balance Sheets and were as follows:
(in millions)
2019
 
2018
Gift cards
$
136

 
$
140

Loyalty rewards
58

 
60

Total contract liability
$
194

 
$
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 2019 and 2018 are as follows:
(in millions)
2019
 
2018
Beginning balance
$
200

 
$
217

Current period gift cards sold and loyalty reward points earned
401

 
422

Net sales from amounts included in contract liability opening balances
(72
)
 
(80
)
Net sales from current period usage
(335
)
 
(359
)
Ending balance
$
194

 
$
200