Quarterly report pursuant to Section 13 or 15(d)

Revenue (Notes)

v3.20.2
Revenue (Notes)
 6 Months Ended
Aug. 01, 2020
Revenue from Contract with Customer [Abstract]  
Revenue from Contract with Customer [Text Block]
6. 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 1, 2020 and August 3, 2019:
Three Months Ended Six Months Ended
($ in millions) August 1, 2020 August 3, 2019 August 1, 2020 August 3, 2019
Women’s apparel $ 271  19  % $ 558  22  % $ 487  19  % $ 1,073  21  %
Men’s apparel and accessories 289  21  % 537  21  % 502 20  % 1,015  21  %
Women’s accessories, including Sephora 219  16  % 401  16  % 389 16  % 778  16  %
Home 172  12  % 246  10  % 317 13  % 551  11  %
Footwear and handbags 147  11  % 272  11  % 264 11  % 528  11  %
Kid’s, including toys 108  8  % 216  9  % 193 8  % 416  8  %
Jewelry 90  6  % 124  5  % 165 7  % 262  5  %
Services and other 94  7  % 155  6  % 155 6  % 325  7  %
Total net sales $ 1,390  100  % $ 2,509  100  % $ 2,472  100  % $ 4,948  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. These liabilities include consideration received for gift card and loyalty related performance obligations which have not been satisfied as of a given date. 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 1, 2020 August 3, 2019 February 1, 2020
Gift cards $ 109  $ 114  $ 136 
Loyalty rewards 62  63  58 
Total contract liability $ 171  $ 177  $ 194 

A rollforward of the amounts included in contract liability for the first six months of 2020 and 2019 are as follows:
(in millions) 2020 2019
Beginning balance $ 194  $ 200 
Current period gift cards sold and loyalty reward points earned 73  173 
Net sales from amounts included in contract liability opening balances (42) (56)
Net sales from current period usage (54) (140)
Ending balance $ 171  $ 177