Contract Assets And Liabilities

6 Months Ended

Aug. 04, 2019

Contract Assets And Liabilities [Abstract]

Contract Assets And Liabilities

11.CONTRACT ASSETS AND LIABILITIES

The Company’s contract assets primarily consist of the right of return for amounts of inventory to be returned that is expected to be resold and is recorded in Prepaid expenses and other current assets on the Company’s consolidated balance sheets. The Company’s contract liabilities primarily consist of gift card liabilities and are recorded in accrued expenses and other current liabilities under deferred revenue (see Note 4 “Accrued Expenses and Other Current Liabilities”) on the Company’s consolidated balance sheets. Upon issuance of a gift card, a liability is established for its cash value. The gift card liability is relieved and revenues on gift cards are recorded at the time of redemption by the customer. Based on historical redemption patterns, gift cards are generally redeemed within one year and gift card breakage is not material.

Contract assets and liabilities on the Company’s consolidated balance sheets are presented in the following table:

	August 4, 2019		February 3, 2019
(in thousands)
Contract assets	$	777	$	895
Contract liabilities	$	6,930	$	8,508

The amount of revenue recognized from our beginning contract liability balance was $5.1 million in the six months ended August 4, 2019.