XML 57 R37.htm IDEA: XBRL DOCUMENT v3.21.2
LEASES (Tables)
 12 Months Ended
Jul. 31, 2021
Leases [Abstract]  
Schedule of Lease Assets and Liabilities
Lease assets and liabilities, net, are as follows (in millions):
Lease Type
Consolidated Balance Sheets Location
July 31, 2021August 1, 2020
Operating lease assetsOperating lease assets$1,064 $983 
Finance lease assetsProperty and equipment, net112 129 
Total lease assets$1,176 $1,112 
Operating liabilitiesCurrent portion of operating lease liabilities$135 $131 
Finance liabilitiesCurrent portion of long-term debt and finance lease liabilities107 12 
Operating liabilitiesLong-term operating lease liabilities962 874 
Finance liabilitiesLong-term finance lease liabilities35 143 
Total lease liabilities$1,239 $1,160 
Schedule of Lease Costs and Other Information
The Company’s lease cost under ASC 842 is as follows (in millions):
Lease Expense Type
Consolidated Statements of Operations Location
20212020
Operating lease costOperating expenses$229 $223 
Short-term lease costOperating expenses29 31 
Variable lease costOperating expenses64 151 
Sublease incomeOperating expenses(8)(3)
Sublease incomeNet sales(20)(23)
Other sublease income, net
Restructuring, acquisition and integration related expenses(2)
(3)(5)
Net operating lease cost(1)
291 374 
Amortization of leased assetsOperating expenses13 16 
Interest on lease liabilitiesInterest expense, net19 12 
Finance lease cost32 28 
Total net lease cost$323 $402 
(1)Rent expense as presented here includes $2 million and $6 million in fiscal 2021 and 2020 of operating lease rent expense related to stores within discontinued operations, but for which GAAP requires the expense to be included within continuing operations, as the Company expects to remain primarily obligated under these leases. Rent expense as presented here also includes immaterial amounts of variable lease expense of discontinued operations.
(2)Includes $31 million and $36 million of lease expense in fiscal 2021 and 2020 and $(33) million and $(41) million of lease income in fiscal 2021 and 2020 that is recorded within Restructuring, acquisition and integration related expenses for assigned leases related to previously sold locations and surplus, non-operating properties for which the Company is restructuring its obligations.
The following tables provide other information required by ASC 842:
Lease Term and Discount RateJuly 31, 2021August 1, 2020
Weighted-average remaining lease term (years)
Operating leases10.7 years10.4 years
Finance leases2.0 years3.1 years
Weighted-average discount rate
Operating leases9.7 %10.6 %
Finance leases8.7 %8.8 %

Other Information
(in millions)20212020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases
$220 $231 
Operating cash flows from finance leases
12 9 
Financing cash flows from finance leases
9 20 
Leased assets obtained in exchange for new finance lease liabilities— 93 
Leased assets obtained in exchange for new operating lease liabilities263 195 
Schedule of Rent Expense Rent expense as presented below under ASC 840 excludes variable lease rent that is included in total net lease cost under ASC 842 in the table above.
(in millions)2019
Rent expense(1)
$212 
Less subtenant rentals recorded in Net sales(17)
Less subtenant rentals recorded in Operating expenses(14)
Total net rent expense$181 
(1)Rent expense as presented in fiscal 2019 includes $10 million of operating lease rent expense related to stores within discontinued operations, but for which GAAP requires the expense to be included within continuing operations, as we expect to remain primarily obligated under these leases.
Schedule of Lease Liabilities and Receipts As of July 31, 2021, these Lease Liabilities and Lease Receipts consisted of the following (in millions):
Lease LiabilitiesLease ReceiptsNet Lease Obligations
Fiscal Year
Operating Leases(1)
Finance Leases(2)
Operating LeasesFinance LeasesOperating LeasesFinance Leases
2022$221 $118 $(53)$— $168 $118 
2023214 14 (44)— 170 14 
2024195 13 (35)— 160 13 
2025154 8 (24)— 130 8 
2026118 4 (14)— 104 4 
Thereafter962 2 (34)— 928 2 
Total undiscounted lease liabilities and receipts$1,864 $159 $(204)$— $1,660 $159 
Less interest(3)
(767)(17)
Present value of lease liabilities1,097 142 
Less current lease liabilities(135)(107)
Long-term lease liabilities$962 $35 
(1)Operating lease payments include $4 million related to extension options that are reasonably certain of being exercised and exclude $52 million of legally binding minimum lease payments for leases signed but not yet commenced.
(2)This table excludes a $55 million payment related to a facility the Company is deemed the accounting owner, which is recognized as a residual obligation, and is subject to an underlying lease.
(3)Calculated using the interest rate for each lease.
Schedule of Lease Liabilities and Receipts As of July 31, 2021, these Lease Liabilities and Lease Receipts consisted of the following (in millions):
Lease LiabilitiesLease ReceiptsNet Lease Obligations
Fiscal Year
Operating Leases(1)
Finance Leases(2)
Operating LeasesFinance LeasesOperating LeasesFinance Leases
2022$221 $118 $(53)$— $168 $118 
2023214 14 (44)— 170 14 
2024195 13 (35)— 160 13 
2025154 8 (24)— 130 8 
2026118 4 (14)— 104 4 
Thereafter962 2 (34)— 928 2 
Total undiscounted lease liabilities and receipts$1,864 $159 $(204)$— $1,660 $159 
Less interest(3)
(767)(17)
Present value of lease liabilities1,097 142 
Less current lease liabilities(135)(107)
Long-term lease liabilities$962 $35 
(1)Operating lease payments include $4 million related to extension options that are reasonably certain of being exercised and exclude $52 million of legally binding minimum lease payments for leases signed but not yet commenced.
(2)This table excludes a $55 million payment related to a facility the Company is deemed the accounting owner, which is recognized as a residual obligation, and is subject to an underlying lease.
(3)Calculated using the interest rate for each lease.