Leases (Tables)
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3 Months Ended |
May 02, 2026 |
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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 |
Quarter Ended |
(Dollars in Millions) |
Classification |
May 2, 2026 |
January 31, 2026 |
May 3, 2025 |
Assets |
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|
|
|
Operating leases |
Operating leases |
$2,318 |
$2,338 |
$2,374 |
Finance leases |
Property and equipment, net |
1,526 |
1,553 |
1,632 |
Total operating and finance leases |
$3,844 |
$3,891 |
$4,006 |
Liabilities |
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Current |
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|
|
|
Operating leases |
Current portion of operating leases |
95 |
94 |
99 |
Finance leases |
Current portion of finance leases and financing obligations |
79 |
76 |
71 |
Noncurrent |
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|
|
|
Operating leases |
Operating leases |
2,624 |
2,650 |
2,687 |
Finance leases |
Finance leases and financing obligations |
1,895 |
1,919 |
1,982 |
Total operating and finance leases |
$4,693 |
$4,739 |
$4,839 |
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Consolidated Statement of Operations |
Quarter Ended |
(Dollars in Millions) |
Classification |
May 2, 2026 |
May 3, 2025 |
Operating leases |
Selling, general, and administrative |
$68 |
$67 |
Finance leases |
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|
|
Amortization of leased assets |
Depreciation and amortization |
30 |
27 |
Interest on leased assets |
Interest expense, net |
29 |
30 |
Total operating and finance leases |
|
$127 |
$124 |
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Consolidated Statement of Cash Flows |
Quarter Ended |
(Dollars in Millions) |
May 2, 2026 |
May 3, 2025 |
Cash paid for amounts included in the measurement of leased liabilities |
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|
Operating cash flows from operating leases |
$75 |
$69 |
Operating cash flows from finance leases |
28 |
29 |
Financing cash flows from finance leases |
24 |
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 2, 2026 |
(Dollars in Millions) |
Operating Leases |
Finance Leases |
Total |
2026 |
$193 |
$138 |
$331 |
2027 |
265 |
189 |
454 |
2028 |
261 |
184 |
445 |
2029 |
261 |
182 |
443 |
2030 |
259 |
175 |
434 |
After 2030 |
3,514 |
2,526 |
6,040 |
Total lease payments |
$4,753 |
$3,394 |
$8,147 |
Amount representing interest |
(2,034) |
(1,420) |
(3,454) |
Lease liabilities |
$2,719 |
$1,974 |
$4,693 |
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| Summary of Weighted-Average Remaining Lease Term, Weighted-Average Remaining Contractually Obligated Lease Term, and Weighted-Average Discount Rate |
The following table summarizes weighted-average remaining lease term, weighted-average remaining contractually obligated lease term, and weighted-average discount rate:
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May 2, 2026 |
January 31, 2026 |
May 3, 2025 |
Weighted-average remaining term (years) |
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Operating leases |
18 |
18 |
19 |
Finance leases |
18 |
18 |
19 |
Weighted-average remaining contractually obligated term (years) |
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|
|
Operating leases |
4 |
4 |
4 |
Finance leases |
4 |
4 |
5 |
Weighted-average discount rate |
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|
Operating leases |
6% |
6% |
6% |
Finance leases |
6% |
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 2, 2026 |
May 3, 2025 |
Property and equipment acquired (disposed) through exchange of: |
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|
Finance lease liabilities |
$2 |
($10) |
Operating lease liabilities |
3 |
5 |
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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 2, 2026 |
January 31, 2026 |
May 3, 2025 |
Assets |
|
|
|
|
Financing obligations |
Property and equipment, net |
$35 |
$36 |
$38 |
Liabilities |
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Current |
Current portion of finance leases and financing obligations |
10 |
9 |
9 |
Noncurrent |
Finance leases and financing obligations |
443 |
446 |
451 |
Total financing obligations |
$453 |
$455 |
$460 |
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Consolidated Statement of Operations |
Quarter Ended |
(Dollars in Millions) |
Classification |
May 2, 2026 |
May 3, 2025 |
Amortization of financing obligation assets |
Depreciation and amortization |
$1 |
$1 |
Interest on financing obligations |
Interest expense, net |
18 |
18 |
Total financing obligations |
|
$19 |
$19 |
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Consolidated Statement of Cash Flows |
Quarter Ended |
(Dollars in Millions) |
May 2, 2026 |
May 3, 2025 |
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 |
$18 |
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 2, 2026 |
(Dollars in Millions) |
Financing Obligations |
2026 |
$60 |
2027 |
80 |
2028 |
77 |
2029 |
76 |
2030 |
75 |
After 2030 |
1,017 |
Total financing obligation payments |
$1,385 |
Non-cash gain on future sale of property |
115 |
Amount representing interest |
(1,047) |
Financing obligation liability |
$453 |
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| Summary of Weighted-Average Remaining Term, Weighted-Average Remaining Contractually Obligated Term and Weighted-Average Discount Rate for Financing Obligations |
The following table summarizes the weighted-average remaining term, weighted-average remaining contractually obligated term, and weighted-average discount rate for financing obligations:
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May 2, 2026 |
January 31, 2026 |
May 3, 2025 |
Weighted-average remaining term (years) |
14 |
15 |
15 |
Weighted-average remaining contractually obligated term (years) |
5 |
5 |
5 |
Weighted-average discount rate |
16% |
16% |
16% |
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