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Leases (Tables)

9 Months Ended

Oct. 28, 2023

Leases [Abstract]

Summary of Operating and Finance Leases

The following tables summarize our operating and finance leases, which are predominately store related, and where they are presented in our Consolidated Financial Statements:


Consolidated Balance Sheets
(Dollars in Millions)	Classification	October 28, 2023	January 28, 2023	October 29, 2022
Assets
Operating leases	Operating leases	$2,492	$2,304	$2,318
Finance leases	Property and equipment, net	1,923	2,033	2,066
Total operating and finance leases		$4,415	$4,337	$4,384
Liabilities
Current
Operating leases	Current portion of operating leases	94	111	109
Finance leases	Current portion of finance leases and financing obligations	75	76	78
Noncurrent
Operating leases	Operating leases	2,780	2,578	2,595
Finance leases	Finance leases and financing obligations	2,270	2,344	2,346
Total operating and finance leases		$5,219	$5,109	$5,128


Consolidated Statement of Operations		Three Months Ended		Nine Months Ended
(Dollars in Millions)	Classification	October 28, 2023	October 29, 2022	October 28, 2023	October 29, 2022
Operating leases	Selling, general, and administrative	$68	$64	$202	$197
Finance leases
Amortization of leased assets	Depreciation and amortization	30	33	92	94
Interest on leased assets	Interest expense, net	36	36	108	104
Total operating and finance leases		$134	$133	$402	$395


Consolidated Statement of Cash Flows	Nine Months Ended
(Dollars in Millions)	October 28, 2023	October 29, 2022
Cash paid for amounts included in the measurement of leased liabilities
Operating cash flows from operating leases	$202	$200
Operating cash flows from finance leases	105	99
Financing cash flows from finance leases	59	65

Summary of Future Lease Payments

The following table summarizes future lease payments by fiscal year:


	October 28, 2023
(Dollars in Millions)	Operating Leases	Finance Leases	Total
2023	$56	$52	$108
2024	267	213	480
2025	260	207	467
2026	254	206	460
2027	255	206	461
After 2027	4,097	3,530	7,627
Total lease payments	$5,189	$4,414	$9,603
Amount representing interest	(2,315)	(2,069)	(4,384)
Lease liabilities	$2,874	$2,345	$5,219

Summary of Weighted-Average Remaining Lease Term and Discount Rates

The following table summarizes weighted-average remaining lease term and discount rate:


	October 28, 2023	January 28, 2023
Weighted-average remaining term (years)
Operating leases	20	20
Finance leases	20	20
Weighted-average discount rate
Operating leases	6%	6%
Finance leases	6%	6%

Summary of Other Lease Information

Other lease information is as follows:


	Nine Months Ended
(Dollars in Millions)	October 28, 2023	October 29, 2022
Property and equipment acquired (disposed) through exchange of:
Finance lease liabilities	$(23)	$714
Operating lease liabilities	247	167

Summary of Financing Obligations

The following tables summarize our financing obligations, which are all store related, and where they are presented in our Consolidated Financial Statements:


Consolidated Balance Sheets
(Dollars in Millions)	Classification	October 28, 2023	January 28, 2023	October 29, 2022
Assets
Financing obligations	Property and equipment, net	$45	$49	$50
Liabilities
Current	Current portion of finance leases and financing obligations	9	18	17
Noncurrent	Finance leases and financing obligations	444	442	445
Total financing obligations		$453	$460	$462


Consolidated Statement of Operations		Three Months Ended		Nine Months Ended
(Dollars in Millions)	Classification	October 28, 2023	October 29, 2022	October 28, 2023	October 29, 2022
Amortization of financing obligation assets	Depreciation and amortization	1	1	4	5
Interest on financing obligations	Interest expense, net	19	16	52	43
Total financing obligations		$20	$17	$56	$48


Consolidated Statement of Cash Flows	Nine Months Ended
(Dollars in Millions)	October 28, 2023	October 29, 2022
Cash paid for and proceeds from amounts included in the measurement of financing obligations
Operating cash flows from financing obligations	$51	$42
Financing cash flows from financing obligations	9	16
Proceeds from financing obligations	19	9

Summary of Future Financing Obligation Payments

The following table summarizes future financing obligation payments by fiscal year:


	October 28, 2023
(Dollars in Millions)	Financing Obligations
2023	$19
2024	78
2025	79
2026	79
2027	79
After 2027	1,242
Total lease payments	$1,576
Non-cash gain on future sale of property	115
Amount representing interest	(1,238)
Financing obligation liability	$453

Summary of Weighted-Average Remaining Term and Discount Rate for Financing Obligations

The following table summarizes the weighted-average remaining term and discount rate for financing obligations:


	October 28, 2023	January 28, 2023
Weighted-average remaining term (years)	17	13
Weighted-average discount rate	16%	14%