Net Sales

6 Months Ended

Jul. 31, 2022

Revenue from Contract with Customer [Abstract]

Net Sales

NET SALES

The following table presents net sales, classified by geography:

	Three Months Ended				Six Months Ended
in millions	July 31, 2022		August 1, 2021		July 31, 2022		August 1, 2021
Net sales – in the U.S.	$	40,044	$	37,642	$	76,050	$	72,359
Net sales – outside the U.S.	3,748		3,476		6,650		6,259
Net sales	$	43,792	$	41,118	$	82,700	$	78,618

The following table presents net sales by products and services:

	Three Months Ended				Six Months Ended
in millions	July 31, 2022		August 1, 2021		July 31, 2022		August 1, 2021
Net sales – products	$	42,348	$	39,717	$	79,813	$	75,988
Net sales – services	1,444		1,401		2,887		2,630
Net sales	$	43,792	$	41,118	$	82,700	$	78,618

The following table presents major product lines and the related merchandising departments (and related services):

Major Product Line	Merchandising Departments
Building Materials	Building Materials, Electrical/Lighting, Lumber, Millwork, and Plumbing
Décor	Appliances, Décor/Storage, Flooring, Kitchen and Bath, and Paint
Hardlines	Hardware, Indoor Garden, Outdoor Garden, and Tools

The following table presents net sales by major product lines (and related services):

	Three Months Ended				Six Months Ended
in millions	July 31, 2022		August 1, 2021		July 31, 2022		August 1, 2021
Building Materials	$	15,883	$	14,411	$	30,752	$	28,071
Décor	14,096		13,395		26,970		25,277
Hardlines	13,813		13,312		24,978		25,270
Net sales	$	43,792	$	41,118	$	82,700	$	78,618

Deferred Revenue

For products and services sold in stores or online, payment is typically due at the point of sale. When we receive payment from customers before the customer has taken possession of the merchandise or the service has been performed, the amount received is recorded as deferred revenue until the sale or service is complete. Such performance obligations are part of contracts with expected original durations of typically three months or less. As of both July 31, 2022 and January 30, 2022, deferred revenue for products and services was $2.6 billion.

We further record deferred revenue for the sale of gift cards and recognize the associated revenue upon the redemption of those gift cards, which generally occurs within six months of gift card issuance. As of July 31, 2022 and January 30, 2022, our performance obligations for unredeemed gift cards were $938 million and $1.0 billion, respectively. Gift card breakage income, which is our estimate of the portion of our gift card balance not expected to be redeemed, was immaterial during the three and six months ended July 31, 2022 and August 1, 2021.