XML 69 R18.htm IDEA: XBRL DOCUMENT
v3.19.3

Leases | 9 Months Ended
--- | ---
Nov. 02, 2019
Leases [Abstract] |
Lessee, Operating Leases [Text Block] | Leases The Company is a party to many agreements involving commitments to make payments to third parties. The majority of our long-term contractual obligations relate to operating leases for our retail stores. We also lease some of our corporate facilities and distribution centers. These operating leases expire at various dates through fiscal 2040. Most store leases have a five-year base period and include options that allow us to extend the lease term beyond the initial base period, subject to terms agreed upon at lease inception. Some leases also include early termination options, which can be exercised under specific conditions. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. We record our lease liabilities at the present value of the lease payments not yet paid, discounted at the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term. As the Company's leases do not provide an implicit interest rate, the Company uses an incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. We recognize operating lease cost over the estimated term of the lease, which includes options to extend lease terms that are reasonably certain of being exercised, starting when possession of the property is taken from the landlord, which normally includes a construction period prior to the store opening. When a lease contains a predetermined fixed escalation of the minimum rent, we recognize the related operating lease cost on a straight-line basis over the lease term. In addition, certain of our lease agreements include variable lease payments, such as payments based on a percentage of sales that are in excess of a predetermined level and/or increases based on a change in the consumer price index or fair market value. These variable lease payments are excluded from minimum lease payments and are included in the determination of net lease cost when it is probable that the expense has been incurred and the amount can be reasonably estimated. As of November 2, 2019, the Company's finance leases were not material to our Condensed Consolidated Financial Statements. Net lease cost recognized on our Condensed Consolidated Statement of Income is summarized as follows:
| 13 Weeks Ended |  | 39 Weeks Ended
($ in millions) | November 2, 2019 |  | November 2, 2019
Operating lease cost | $ | 308 |  |  | $ | 905 |
Variable lease cost | 142 |  |  | 463 |
Sublease income | (2 | ) |  | (8 | )
Net lease cost | $ | 448 |  |  | $ | 1,360 |
As of November 2, 2019, the maturities of lease liabilities based on the total minimum lease commitment amount including options to extend lease terms that are reasonably certain of being exercised are as follows:
($ in millions) |
Fiscal Year |
Remainder of 2019 | $ | 301 |
2020 | 1,171 |
2021 | 1,048 |
2022 | 940 |
2023 | 836 |
Thereafter | 3,864 |
Total minimum lease payments | 8,160 |
Less: Interest | (1,576 | )
Present value of operating lease liabilities | 6,584 |
Less: Current portion of operating lease liabilities | (934 | )
Long-term operating lease liabilities | $ | 5,650 |
During the thirteen and thirty-nine weeks ended November 2, 2019, additions of operating lease assets were $341 million and $797 million, respectively. As of November 2, 2019, the minimum lease commitment amount for operating leases signed but not yet commenced, primarily for retail stores, was $186 million. As of November 2, 2019, the weighted-average remaining operating lease term was 8.7 years and the weighted-average discount rate was 4.7 percent for operating leases recognized on our Condensed Consolidated Financial Statements. In accordance with Accounting Standards Codification ("ASC") 840, Leases, the aggregate minimum non-cancelable annual lease payments under operating leases in effect on February 2, 2019 were as follows:
($ in millions) |
Fiscal Year |
2019 | $ | 1,156 |
2020 | 1,098 |
2021 | 892 |
2022 | 730 |
2023 | 539 |
Thereafter | 1,520 |
Total minimum lease commitments | $ | 5,935 |
The total minimum lease commitment amount above does not include minimum sublease income of $12 million receivable in the future under non-cancelable sublease agreements. In addition, the total minimum lease commitment amount above excludes options to extend lease terms that are reasonably certain of being exercised.

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration