Revenue

6 Months Ended

Aug. 03, 2024

Revenue [Abstract]

Revenue

7. Revenue

We generate substantially all of our revenue from contracts with customers from the sale of products and services. Contract balances primarily consist of receivables and liabilities related to unfulfilled membership benefits and services not yet completed, product merchandise not yet delivered to customers, deferred revenue from our private label and co-branded credit card arrangement and unredeemed gift cards. Contract balances were as follows ($ in millions):

	August 3, 2024		February 3, 2024		July 29, 2023
Receivables, net(1)	$	474	$	512	$	485
Short-term contract liabilities included in:
Unredeemed gift card liabilities		243		253		250
Deferred revenue		940		1,000		996
Accrued liabilities		64		53		64
Long-term contract liabilities included in:
Long-term liabilities		233		245		254

(1)Receivables are recorded net of allowances for expected credit losses of $16 million, $23 million and $18 million as of August 3, 2024, February 3, 2024, and July 29, 2023, respectively.

During the first six months of fiscal 2025 and fiscal 2024, $893 million and $1,026 million of revenue was recognized, respectively, that was included in the contract liabilities at the beginning of the respective periods.

Estimated revenue from our contract liability balances expected to be recognized in future periods if the performance of the contract is expected to have an initial duration of more than one year is as follows ($ in millions):

Fiscal Year		Amount
Remainder of fiscal 2025	$	17
Fiscal 2026		33
Fiscal 2027		27
Fiscal 2028		25
Fiscal 2029		25
Fiscal 2030		25
Thereafter		112

See Note 11, Segments, for information on our revenue by reportable segment and product category.