SUPPLEMENTAL FINANCIAL INFORMATION

Other long-term liabilities at August 4, 2018, July 29, 2017 and February 3, 2018 consisted of the following:



millions	August 4, 2018		July 29, 2017		February 3, 2018
Self-insurance reserves	351		533		491
Other	419		459		444
Total	$	770	$	992	$	935

The Company accounted for the Insurance Transaction in accordance with accounting standards applicable to extinguishment of liabilities. The Company determined that it has been legally released from being the primary obligor under certain workers' compensation and auto per occurrence deductible losses. Accordingly, we accounted for the Insurance Transaction as an extinguishment, and de-recognized the related self-insurance reserves and recognized a loss of $27 million, for the difference between the cash paid and the carrying value of related self-insurance reserves, within selling and administrative in the Condensed Consolidated Statement of Operations for the 26 week period ended August 4, 2018.

The Company sells service contracts that provide for preventative maintenance and repair/replacement coverage on consumer products over periods of time ranging from 12 to 144 months. Revenues from the sale of service contracts, and the related direct acquisition costs, are deferred and amortized on a straight-line basis over the lives of the associated contracts, while the associated service costs are expensed as incurred. The Company satisfies its performance obligations for service contracts over time as we are obligated to perform the related services over the contract period, while payment from the customer is generally received at the inception of the service contract.

The table below shows activity related to unearned revenues for service contracts, which are recorded within current and long-term unearned revenues in the Condensed Consolidated Balance Sheets. During the 26 weeks ended August 4, 2018, the Company recognized revenues of $347 million that were included within unearned revenues at February 3, 2018. During the 26 weeks ended July 29, 2017, the Company recognized revenues of $401 million that were included within unearned revenues at January 28, 2017. The Company expects to recognize revenue of $560 million within the next 12 months and $480 million of revenue thereafter and has accordingly included these amounts within current and long-term unearned revenues, respectively.



millions	Unearned Revenues
Balance at July 29, 2017	$	1,219
Sales of service contracts	325
Revenue recognized on existing service contracts	(430		)
Balance at February 3, 2018	1,114
Sales of service contracts	310
Revenue recognized on existing service contracts	(384		)
Balance at August 4, 2018	$	1,040

Deferred acquisition costs included $41 million, $45 million and $41 million within prepaid expenses and other current assets and $133 million, $152 million and $141 million within other assets in the Condensed Consolidated Balance Sheets at August 4, 2018, July 29, 2017 and February 3, 2018, respectively. Amortization of deferred acquisition costs included within selling and administrative expense in the Condensed Consolidated Statements of Operations was $25 million and $27 million for the 13 week periods ended August 4, 2018 and July 29, 2017, respectively, and $51 million and $54 million for the 26 week periods ended August 4, 2018 and July 29, 2017, respectively.

During the second quarter of 2018, the Company identified an error in its footnote disclosures related to deferred acquisition costs. The amount of current and non-current deferred acquisition costs previously disclosed in the first quarter 2018 footnote were $145 million and $268 million as of February 3, 2018, respectively. The Company evaluated the materiality of the misstated footnote disclosure and concluded that it was immaterial to prior periods. The Company has revised the disclosure of deferred acquisition costs at February 3, 2018 above, which had no impact on our condensed consolidated financial statements.