Revenue Recognition

9 Months Ended

May 02, 2020

Contract liabilities

The contract liabilities representing unearned revenue for our continuing operations are as follows:


	May 2, 2020		August 3, 2019		May 4, 2019		August 4, 2018 ^(a)
	(millions)
Deferred revenue - gift card liability	$	85.7	$	79.7	$	82.9	$	72.4
Deferred revenue - loyalty programs	21.3		22.1		26.0		26.3

________

^(a)After adjusting for the impact of adopting ASU 2014-09.

For the three and nine months ended May 2, 2020, the Company recognized revenue of approximately $14 million and $35 million, respectively, associated with gift card redemptions and gift card breakage. Of these amounts, approximately $0 million and $6 million, respectively, were recorded within Income from discontinued operations. The reduction in income from gift cards during the three months ended May 2, 2020 compared to the prior year was due to the retail store closures discussed earlier in response to COVID-19. For the three and nine months ended May 4, 2019, the company recognized revenue of approximately $30 million and $35 million, respectively, associated with gift card redemptions and gift card breakage. Of these amounts, approximately $9 million and $10 million, respectively, were recorded within Income from discontinued operations.

For the three and nine months ended May 2, 2020, the Company recognized revenue of approximately $12 million and $22 million, respectively, associated with reward redemptions and breakage related to the Company’s loyalty programs. Of these amounts, approximately $0 million and $5 million, respectively, were recorded within Income from discontinued operations. For the three and nine months ended May 4, 2019, the Company recognized revenue of approximately $19 million and $29 million, respectively, associated with reward redemptions and breakage related to the Company’s loyalty programs. Of these amounts, approximately $8 million and $9 million, respectively, were recorded within Income from discontinued operations.

The Company’s revenues by major product categories as a percentage of total net sales are as follows:


	Three Months Ended						Nine Months Ended
	May 2, 2020		May 4, 2019		May 2, 2020		May 4, 2019
Apparel	83	%	86	%	82	%	82	%
Accessories	10	%	12	%	12	%	14	%
Other	7	%	2	%	6	%	4	%
Total net sales	100	%	100	%	100	%	100	%