| PROPERTY AND EQUIPMENT |
NOTE 5—PROPERTY AND EQUIPMENT Property and equipment consisted of the following: | | | | | | | | | JANUARY 31, | | FEBRUARY 1, | | | 2026 | | 2025 | | | | (in thousands) | Finance lease right-of-use assets(1) | | $ | 1,565,175 | | $ | 1,327,476 | Leasehold improvements(2) | | | 504,631 | | | 441,140 | Building and building improvements(3) | | | 420,070 | | | 369,921 | Computer software | | | 198,515 | | | 186,048 | Furniture, fixtures and equipment | | | 120,296 | | | 111,384 | Land | | | 123,103 | | | 105,071 | Machinery, equipment and aircraft | | | 101,467 | | | 90,905 | Built-to-suit property | | | 38,791 | | | 37,057 | Total property and equipment | | | 3,072,048 | | | 2,669,002 | Less—accumulated depreciation and amortization(4) | | | (913,330) | | | (785,826) | Total property and equipment—net | | $ | 2,158,718 | | $ | 1,883,176 |
| (1) | Refer to “Lease Accounting” within Note 3—Significant Accounting Policies and Note 10—Leases. |
| (2) | Includes construction in progress of $37 million and $13 million as of January 31, 2026 and February 1, 2025, respectively. |
| (3) | Includes $22 million and $109 million of owned buildings under construction related to future Design Galleries as of January 31, 2026 and February 1, 2025, respectively. |
| (4) | Includes accumulated amortization related to finance lease right-of-use assets of $384 million and $320 million as of January 31, 2026 and February 1, 2025, respectively. Refer to Note 10—Leases. |
We recorded depreciation of property and equipment, excluding amortization for finance lease right-of-use assets, of $84 million, $76 million and $64 million in fiscal 2025, fiscal 2024 and fiscal 2023, respectively.
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