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Leases | 12 Months Ended
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Feb. 03, 2024
Leases [Abstract] |
Leases | Leases We lease certain retail stores, supply chain facilities, office space, land, and equipment. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. We combine lease and nonlease components for new and reassessed leases. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one to 50 years or more. The exercise of lease renewal options is at our sole discretion. Certain leases also include options to purchase the leased property. The depreciable life of leased assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. We use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. Certain of our lease agreements require reimbursement of real estate taxes, common area maintenance, and insurance, as well as rental payments based on a percentage of retail sales over contractual levels, and others include rental payments adjusted periodically for inflation. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. We rent or sublease certain real estate to third parties. Our lease and sublease portfolio consists mainly of operating leases with CVS Pharmacy Inc. (CVS) for space within our stores.
Leases (millions) | Classification | February 3, 2024 | January 28, 2023
Assets |  |  |
Operating | Operating Lease Assets | $ | 3,362 |  | $ | 2,657 |
Finance | Property and Equipment, Net (a) | 1,470 |  | 1,673 |
Total leased assets |  | $ | 4,832 |  | $ | 4,330 |
Liabilities |  |  |
Current |  |  |
Operating | Accrued and Other Current Liabilities | $ | 329 |  | $ | 296 |
Finance | Current Portion of Long-term Debt and Other Borrowings | 119 |  | 129 |
Noncurrent |  |  |
Operating | Noncurrent Operating Lease Liabilities | 3,279 |  | 2,638 |
Finance | Long-term Debt and Other Borrowings | 1,894 |  | 1,943 |
Total lease liabilities |  | $ | 5,621 |  | $ | 5,006 |
(a)Finance lease assets are recorded net of accumulated amortization of $743 million and $623 million as of February 3, 2024, and January 28, 2023, respectively.
Lease Cost (millions) | Classification | 2023 | 2022 | 2021
Operating lease cost (a) | SG&A Expenses | $ | 550 |  | $ | 467 |  | $ | 387 |
Finance lease cost |  |  |  |
Amortization of leased assets | Depreciation and Amortization (b) | 136 |  | 133 |  | 127 |
Interest on lease liabilities | Net Interest Expense | 71 |  | 68 |  | 68 |
Sublease income (c) | Other Revenue | (20) |  | (19) |  | (18) |
Net lease cost |  | $ | 737 |  | $ | 649 |  | $ | 564 |
(a)2023, 2022, and 2021 include $115 million, $101 million, and $64 million, respectively, of short-term and variable lease costs. (b)Supply chain-related amounts are included in Cost of Sales. (c)Sublease income excludes rental income from owned properties of $49 million for each of 2023 and 2022, and $48 million in 2021, which is included in Other Revenue.
Maturity of Lease Liabilities | Operating | Finance |
(millions) | Leases (a) | Leases (b) | Total
2024 | $ | 469 |  | $ | 186 |  | $ | 655 |
2025 | 452 |  | 179 |  | 631 |
2026 | 437 |  | 181 |  | 618 |
2027 | 424 |  | 181 |  | 605 |
2028 | 395 |  | 183 |  | 578 |
Thereafter | 2,579 |  | 1,743 |  | 4,322 |
Total lease payments | $ | 4,756 |  | $ | 2,653 |  | $ | 7,409 |
Less: Interest | 1,148 |  | 640 |  |
Present value of lease liabilities | $ | 3,608 |  | $ | 2,013 |  |
(a)Operating lease payments include $782 million related to options to extend lease terms that are reasonably certain of being exercised and exclude $879 million of legally binding minimum lease payments for leases signed but not yet commenced. (b)Finance lease payments include $226 million related to options to extend lease terms that are reasonably certain of being exercised and exclude $449 million of legally binding minimum lease payments for leases signed but not yet commenced.
Lease Term and Discount Rate | February 3, 2024 | January 28, 2023
Weighted average remaining lease term (years) |  |
Operating leases | 12.0 | 11.4
Finance leases | 14.6 | 15.4
Weighted average discount rate |  |
Operating leases | 4.22 | % | 3.52 | %
Finance leases | 3.69 | % | 3.56 | %
Other Information (millions) | 2023 | 2022 | 2021
Cash paid for amounts included in the measurement of lease liabilities |  |  |
Operating cash flows from operating leases | $ | 479 |  | $ | 364 |  | $ | 316 |
Operating cash flows from finance leases | 70 |  | 63 |  | 64 |
Financing cash flows from finance leases | 147 |  | 100 |  | 91 |
Leases | Leases We lease certain retail stores, supply chain facilities, office space, land, and equipment. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. We combine lease and nonlease components for new and reassessed leases. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one to 50 years or more. The exercise of lease renewal options is at our sole discretion. Certain leases also include options to purchase the leased property. The depreciable life of leased assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. We use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. Certain of our lease agreements require reimbursement of real estate taxes, common area maintenance, and insurance, as well as rental payments based on a percentage of retail sales over contractual levels, and others include rental payments adjusted periodically for inflation. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. We rent or sublease certain real estate to third parties. Our lease and sublease portfolio consists mainly of operating leases with CVS Pharmacy Inc. (CVS) for space within our stores.
Leases (millions) | Classification | February 3, 2024 | January 28, 2023
Assets |  |  |
Operating | Operating Lease Assets | $ | 3,362 |  | $ | 2,657 |
Finance | Property and Equipment, Net (a) | 1,470 |  | 1,673 |
Total leased assets |  | $ | 4,832 |  | $ | 4,330 |
Liabilities |  |  |
Current |  |  |
Operating | Accrued and Other Current Liabilities | $ | 329 |  | $ | 296 |
Finance | Current Portion of Long-term Debt and Other Borrowings | 119 |  | 129 |
Noncurrent |  |  |
Operating | Noncurrent Operating Lease Liabilities | 3,279 |  | 2,638 |
Finance | Long-term Debt and Other Borrowings | 1,894 |  | 1,943 |
Total lease liabilities |  | $ | 5,621 |  | $ | 5,006 |
(a)Finance lease assets are recorded net of accumulated amortization of $743 million and $623 million as of February 3, 2024, and January 28, 2023, respectively.
Lease Cost (millions) | Classification | 2023 | 2022 | 2021
Operating lease cost (a) | SG&A Expenses | $ | 550 |  | $ | 467 |  | $ | 387 |
Finance lease cost |  |  |  |
Amortization of leased assets | Depreciation and Amortization (b) | 136 |  | 133 |  | 127 |
Interest on lease liabilities | Net Interest Expense | 71 |  | 68 |  | 68 |
Sublease income (c) | Other Revenue | (20) |  | (19) |  | (18) |
Net lease cost |  | $ | 737 |  | $ | 649 |  | $ | 564 |
(a)2023, 2022, and 2021 include $115 million, $101 million, and $64 million, respectively, of short-term and variable lease costs. (b)Supply chain-related amounts are included in Cost of Sales. (c)Sublease income excludes rental income from owned properties of $49 million for each of 2023 and 2022, and $48 million in 2021, which is included in Other Revenue.
Maturity of Lease Liabilities | Operating | Finance |
(millions) | Leases (a) | Leases (b) | Total
2024 | $ | 469 |  | $ | 186 |  | $ | 655 |
2025 | 452 |  | 179 |  | 631 |
2026 | 437 |  | 181 |  | 618 |
2027 | 424 |  | 181 |  | 605 |
2028 | 395 |  | 183 |  | 578 |
Thereafter | 2,579 |  | 1,743 |  | 4,322 |
Total lease payments | $ | 4,756 |  | $ | 2,653 |  | $ | 7,409 |
Less: Interest | 1,148 |  | 640 |  |
Present value of lease liabilities | $ | 3,608 |  | $ | 2,013 |  |
(a)Operating lease payments include $782 million related to options to extend lease terms that are reasonably certain of being exercised and exclude $879 million of legally binding minimum lease payments for leases signed but not yet commenced. (b)Finance lease payments include $226 million related to options to extend lease terms that are reasonably certain of being exercised and exclude $449 million of legally binding minimum lease payments for leases signed but not yet commenced.
Lease Term and Discount Rate | February 3, 2024 | January 28, 2023
Weighted average remaining lease term (years) |  |
Operating leases | 12.0 | 11.4
Finance leases | 14.6 | 15.4
Weighted average discount rate |  |
Operating leases | 4.22 | % | 3.52 | %
Finance leases | 3.69 | % | 3.56 | %
Other Information (millions) | 2023 | 2022 | 2021
Cash paid for amounts included in the measurement of lease liabilities |  |  |
Operating cash flows from operating leases | $ | 479 |  | $ | 364 |  | $ | 316 |
Operating cash flows from finance leases | 70 |  | 63 |  | 64 |
Financing cash flows from finance leases | 147 |  | 100 |  | 91 |

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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-20/tableOfContent + Details
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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-20/tableOfContent + Details
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