The Company enters into leasing transactions in which the Company is the lessee. These lease contracts are typically classified as operating leases. The Company’s lease contracts are generally for office space used to conduct its business, and the determination of whether such contracts contain leases generally does not require significant estimates or judgments. The Company also leases certain property, equipment, and warehouses. As of May 1, 2026, the remaining terms of the Company’s leases generally range from one month to approximately ten years. As of May 1, 2026 and January 30, 2026, there were no material finance leases in which the Company was a lessee.

The Company also enters into leasing transactions in which the Company is the lessor, primarily through customer financing arrangements offered under DFS. DFS originates leases that are primarily classified as either sales-type leases or operating leases. See Note 4 of the Notes to the Condensed Consolidated Financial Statements for more information about the Company’s lessor arrangements.

The following table presents components of lease costs included in the Condensed Consolidated Statements of Income for the periods indicated:


	Three Months Ended
		May 1, 2026		May 2, 2025

		(in millions)
Operating lease costs		$	67	$	58
Variable costs		21		23
Total lease costs		$	88	$	81

During the three months ended May 1, 2026 and May 2, 2025, sublease income, finance lease costs, and short-term lease costs were immaterial.

The following table presents supplemental information related to operating leases included in the Condensed Consolidated Statements of Financial Position as of the dates indicated:


	Classification	May 1, 2026			January 30, 2026

		(in millions, except for term and discount rate)
Operating lease right-of-use assets	Other non-current assets	$	661		$	640

Current operating lease liabilities	Accrued and other current liabilities	$	250		$	246
Non-current operating lease liabilities	Other non-current liabilities	495			481
Total operating lease liabilities		$	745		$	727

Weighted-average remaining lease term (in years)		4.19			4.11
Weighted-average discount rate		4.70		%	4.74		%

The following table presents supplemental cash flow information related to leases for the periods indicated:


	Three Months Ended
	May 1, 2026		May 2, 2025

	(in millions)
Cash paid for amounts included in the measurement of lease liabilities — operating cash outflows from operating leases	$	67	$	63

Right-of-use assets obtained in exchange for new operating lease liabilities	$	78	$	65

The following table presents the future maturity of the Company’s operating lease liabilities under non-cancelable leases and reconciles the undiscounted cash flows for these leases to the lease liability recognized on the Condensed Consolidated Statements of Financial Position as of the date indicated:


	May 1, 2026

	(in millions)
Fiscal 2027 (remaining nine months)	$	191
Fiscal 2028	216
Fiscal 2029	161
Fiscal 2030	110
Fiscal 2031	65
Thereafter	77
Total lease payments	820
Less: Imputed interest	75
Total	$	745
Current operating lease liabilities	$	250
Non-current operating lease liabilities	$	495