Leases (Tables)
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3 Months Ended |
May 03, 2025 |
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| Leases [Abstract] |
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| 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:
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Consolidated Balance Sheets |
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(Dollars in Millions) |
Classification |
May 3, 2025 |
February 1, 2025 |
May 4, 2024 |
Assets |
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Operating leases |
Operating leases |
$2,374 |
$2,394 |
$2,498 |
Finance leases |
Property and equipment, net |
1,632 |
1,666 |
1,844 |
Total operating and finance leases |
$4,006 |
$4,060 |
$4,342 |
Liabilities |
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Current |
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Operating leases |
Current portion of operating leases |
99 |
102 |
92 |
Finance leases |
Current portion of finance leases and financing obligations |
71 |
72 |
73 |
Noncurrent |
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Operating leases |
Operating leases |
2,687 |
2,703 |
2,783 |
Finance leases |
Finance leases and financing obligations |
1,982 |
2,008 |
2,213 |
Total operating and finance leases |
$4,839 |
$4,885 |
$5,161 |
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Consolidated Statement of Operations |
Quarter Ended |
(Dollars in Millions) |
Classification |
May 3, 2025 |
May 4, 2024 |
Operating leases |
Selling, general, and administrative |
$67 |
$69 |
Finance leases |
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Amortization of leased assets |
Depreciation and amortization |
27 |
29 |
Interest on leased assets |
Interest expense, net |
30 |
36 |
Total operating and finance leases |
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$124 |
$134 |
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Consolidated Statement of Cash Flows |
Quarter Ended |
(Dollars in Millions) |
May 3, 2025 |
May 4, 2024 |
Cash paid for amounts included in the measurement of leased liabilities |
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Operating cash flows from operating leases |
$69 |
$66 |
Operating cash flows from finance leases |
29 |
35 |
Financing cash flows from finance leases |
19 |
19 |
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| Summary of Future Lease Payments |
The following table summarizes future lease payments by fiscal year:
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May 3, 2025 |
(Dollars in Millions) |
Operating Leases |
Finance Leases |
Total |
2025 |
$204 |
$141 |
$345 |
2026 |
262 |
186 |
448 |
2027 |
258 |
185 |
443 |
2028 |
255 |
181 |
436 |
2029 |
255 |
177 |
432 |
After 2029 |
3,713 |
2,746 |
6,459 |
Total lease payments |
$4,947 |
$3,616 |
$8,563 |
Amount representing interest |
(2,161) |
(1,563) |
(3,724) |
Lease liabilities |
$2,786 |
$2,053 |
$4,839 |
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| Summary of Weighted-Average Remaining Lease Term, Weighted-Average Remaining Contractually Obligated Lease Term, and Discount Rate |
The following table summarizes weighted-average remaining lease term, weighted-average remaining contractually obligated lease term, and discount rate:
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May 3, 2025 |
February 1, 2025 |
Weighted-average remaining term (years) |
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Operating leases |
19 |
19 |
Finance leases |
19 |
19 |
Weighted-average remaining contractually obligated term (years) |
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|
Operating leases |
4 |
4 |
Finance leases |
5 |
5 |
Weighted-average discount rate |
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Operating leases |
6% |
6% |
Finance leases |
6% |
6% |
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| Summary of Other Lease Information |
Other lease information is as follows:
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Quarter Ended |
(Dollars in Millions) |
May 3, 2025 |
May 4, 2024 |
Property and equipment acquired (disposed) through exchange of: |
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Finance lease liabilities |
$(10) |
$(11) |
Operating lease liabilities |
5 |
21 |
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| 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:
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Consolidated Balance Sheets |
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|
(Dollars in Millions) |
Classification |
May 3, 2025 |
February 1, 2025 |
May 4, 2024 |
Assets |
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Financing obligations |
Property and equipment, net |
$38 |
$39 |
$43 |
Liabilities |
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Current |
Current portion of finance leases and financing obligations |
9 |
9 |
8 |
Noncurrent |
Finance leases and financing obligations |
451 |
448 |
438 |
Total financing obligations |
$460 |
$457 |
$446 |
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Consolidated Statement of Operations |
Quarter Ended |
(Dollars in Millions) |
Classification |
May 3, 2025 |
May 4, 2024 |
Amortization of financing obligation assets |
Depreciation and amortization |
$1 |
$1 |
Interest on financing obligations |
Interest expense, net |
18 |
18 |
Total financing obligations |
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$19 |
$19 |
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Consolidated Statement of Cash Flows |
Quarter Ended |
(Dollars in Millions) |
May 3, 2025 |
May 4, 2024 |
Cash paid for and proceeds from amounts included in the measurement of financing obligations |
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Operating cash flows from financing obligations |
$18 |
$17 |
Financing cash flows from financing obligations |
2 |
2 |
Proceeds from financing obligations |
3 |
— |
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| Summary of Future Financing Obligation Payments |
The following table summarizes future financing obligation payments by fiscal year:
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May 3, 2025 |
(Dollars in Millions) |
Financing Obligations |
2025 |
$60 |
2026 |
82 |
2027 |
81 |
2028 |
78 |
2029 |
77 |
After 2029 |
1,107 |
Total financing obligation payments |
$1,485 |
Non-cash gain on future sale of property |
116 |
Amount representing interest |
(1,141) |
Financing obligation liability |
$460 |
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| Summary of Weighted-Average Remaining Term, Weighted-Average Remaining Contractually Obligated Term, and Discount Rate for Financing Obligations |
The following table summarizes the weighted-average remaining term, weighted-average remaining contractually obligated term, and discount rate for financing obligations:
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May 3, 2025 |
February 1, 2025 |
Weighted-average remaining term (years) |
15 |
16 |
Weighted-average remaining contractually obligated term (years) |
5 |
5 |
Weighted-average discount rate |
16% |
16% |
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