Leases (Tables)
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6 Months Ended |
Aug. 01, 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 |
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(Dollars in Millions) |
Classification |
August 1, 2026 |
January 31, 2026 |
August 2, 2025 |
Assets |
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Operating leases |
Operating leases |
$2,297 |
$2,338 |
$2,363 |
Finance leases |
Property and equipment, net |
1,480 |
1,553 |
1,612 |
Total operating and finance leases |
$3,777 |
$3,891 |
$3,975 |
Liabilities |
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Current |
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Operating leases |
Current portion of operating leases |
96 |
94 |
96 |
Finance leases |
Current portion of finance leases and financing obligations |
82 |
76 |
75 |
Noncurrent |
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Operating leases |
Operating leases |
2,613 |
2,650 |
2,672 |
Finance leases |
Finance leases and financing obligations |
1,853 |
1,919 |
1,959 |
Total operating and finance leases |
$4,644 |
$4,739 |
$4,802 |
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Consolidated Statements of Operations |
Three Months Ended |
Six Months Ended |
(Dollars in Millions) |
Classification |
August 1, 2026 |
August 2, 2025 |
August 1, 2026 |
August 2, 2025 |
Operating leases |
Selling, general, and administrative |
$68 |
$68 |
$136 |
$135 |
Finance leases |
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Amortization of leased assets |
Depreciation and amortization |
29 |
27 |
59 |
54 |
Interest on leased assets |
Interest expense, net |
29 |
30 |
58 |
60 |
Total operating and finance leases |
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$126 |
$125 |
$253 |
$249 |
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Consolidated Statements of Cash Flows |
Six Months Ended |
(Dollars in Millions) |
August 1, 2026 |
August 2, 2025 |
Cash paid for amounts included in the measurement of leased liabilities |
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Operating cash flows from operating leases |
$137 |
$146 |
Operating cash flows from finance leases |
57 |
59 |
Financing cash flows from finance leases |
40 |
42 |
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| Summary of Future Lease Payments |
The following table summarizes future lease payments by fiscal year:
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August 1, 2026 |
(Dollars in Millions) |
Operating Leases |
Finance Leases |
Total |
2026 |
$133 |
$98 |
$231 |
2027 |
267 |
184 |
451 |
2028 |
264 |
183 |
447 |
2029 |
262 |
182 |
444 |
2030 |
260 |
173 |
433 |
After 2030 |
3,518 |
2,497 |
6,015 |
Total lease payments |
$4,704 |
$3,317 |
$8,021 |
Amount representing interest |
(1,995) |
(1,382) |
(3,377) |
Lease liabilities |
$2,709 |
$1,935 |
$4,644 |
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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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August 1, 2026 |
January 31, 2026 |
August 2, 2025 |
Weighted-average remaining term (years) |
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Operating leases |
18 |
18 |
19 |
Finance leases |
18 |
18 |
18 |
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 |
7% |
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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Six Months Ended |
(Dollars in Millions) |
August 1, 2026 |
August 2, 2025 |
Property and equipment (disposed) acquired through exchange of: |
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Finance lease liabilities |
($22) |
($5) |
Operating lease liabilities |
11 |
20 |
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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 |
August 1, 2026 |
January 31, 2026 |
August 2, 2025 |
Assets |
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Financing obligations |
Property and equipment, net |
$34 |
$36 |
$37 |
Liabilities |
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Current |
Current portion of finance leases and financing obligations |
10 |
9 |
9 |
Noncurrent |
Finance leases and financing obligations |
442 |
446 |
450 |
Total financing obligations |
$452 |
$455 |
$459 |
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Consolidated Statements of Operations |
Three Months Ended |
Six Months Ended |
(Dollars in Millions) |
Classification |
August 1, 2026 |
August 2, 2025 |
August 1, 2026 |
August 2, 2025 |
Amortization of financing obligation assets |
Depreciation and amortization |
$1 |
$1 |
$2 |
$2 |
Interest on financing obligations |
Interest expense, net |
19 |
19 |
37 |
37 |
Total financing obligations |
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$20 |
$20 |
$39 |
$39 |
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Consolidated Statements of Cash Flows |
Six Months Ended |
(Dollars in Millions) |
August 1, 2026 |
August 2, 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 |
$37 |
$36 |
Financing cash flows from financing obligations |
4 |
4 |
Proceeds from financing obligations |
— |
10 |
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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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August 1, 2026 |
(Dollars in Millions) |
Financing Obligations |
2026 |
$39 |
2027 |
80 |
2028 |
78 |
2029 |
77 |
2030 |
75 |
After 2030 |
1,012 |
Total financing obligation payments |
$1,361 |
Non-cash gain on future sale of property |
115 |
Amount representing interest |
(1,024) |
Financing obligation liability |
$452 |
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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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August 1, 2026 |
January 31, 2026 |
August 2, 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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