Revenue

3 Months Ended

Apr. 29, 2023

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):

	April 29, 2023		January 28, 2023		April 30, 2022
Receivables, net(1)	$	523	$	581	$	526
Short-term contract liabilities included in:
Unredeemed gift card liabilities		256		274		284
Deferred revenue		1,015		1,116		1,101
Accrued liabilities		68		66		82
Long-term contract liabilities included in:
Long-term liabilities		260		265		5

(1)Receivables are recorded net of allowances for doubtful accounts of $18 million, $22 million and $25 million as of April 29, 2023, January 28, 2023, and April 30, 2022, respectively.

During the first three months of fiscal 2024 and fiscal 2023, $747 million and $829 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 a duration of more than one year is as follows ($ in millions):

Fiscal Year		Amount
Remainder of fiscal 2024	$	22
Fiscal 2025		28
Fiscal 2026		24
Fiscal 2027		24
Fiscal 2028		24
Fiscal 2029		24
Thereafter		114

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