Revenue

9 Months Ended

Nov. 02, 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 relate 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):

	November 2, 2024		February 3, 2024		October 28, 2023
Receivables, net(1)	$	471	$	512	$	555
Short-term contract liabilities included in:
Unredeemed gift card liabilities		246		253		245
Deferred revenue		878		1,000		934
Accrued liabilities		58		53		59
Long-term contract liabilities included in:
Long-term liabilities		237		245		250

(1)Receivables are recorded net of allowances for expected credit losses of $16 million, $23 million and $19 million as of November 2, 2024, February 3, 2024, and October 28, 2023, respectively.

During the first nine months of fiscal 2025 and fiscal 2024, $1,054 million and $1,192 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	$	10
Fiscal 2026		35
Fiscal 2027		30
Fiscal 2028		26
Fiscal 2029		26
Fiscal 2030		26
Thereafter		115

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