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PROPERTY AND EQUIPMENT, NET
 12 Months Ended
Aug. 01, 2026
Property, Plant, and Equipment [Abstract]  
PROPERTY AND EQUIPMENT, NET
NOTE 5—PROPERTY AND EQUIPMENT, NET

Property and equipment, net consisted of the following:
(in millions)Original
Estimated
Useful Lives		20262025
Land$101 $113 
Buildings and improvements
10 - 40 years
992 1,003 
Leasehold improvements
10 - 20 years
315 304 
Equipment
3 - 25 years
1,741 1,663 
Motor vehicles
5 - 8 years
44 48 
Finance lease assets
5 - 14 years
19 38 
Construction in progress168 200 
Property and equipment3,380 3,369 
Less accumulated depreciation and amortization1,664 1,620 
Property and equipment, net$1,716 $1,749 

The Company capitalized $6 million, $9 million and $11 million of interest during fiscal 2026, 2025 and 2024, respectively.

Depreciation and amortization expense on property and equipment was $237 million, $250 million and $247 million for fiscal 2026, 2025 and 2024, respectively.

In the fourth quarter of fiscal 2026, the Company sold long-lived assets related to a surplus distribution center, which were previously classified as held for sale within Prepaid expenses and other current assets in the Consolidated Balance Sheets. In connection with the sale, the Company recorded an $18 million gain on sale within Loss (gain) on sale of assets and other asset charges in the Consolidated Statements of Operations. In the second quarter of fiscal 2026, the Company sold long-lived assets previously held for sale related to another surplus distribution center for an amount that approximated its net book value at the time of the sale.

Subsequent to the fourth quarter of fiscal 2026, the Company entered into an agreement to sell a distribution center with a carrying value of $26 million, which was classified as Property and equipment, net in the Consolidated Balance Sheets as of August 1, 2026. The Company expects the sale to close in fiscal 2027 for an amount that exceeds the carrying value of the of the assets.

Asset Impairment Charges

During the third quarter of fiscal 2026, the Company recorded a $14 million non-cash asset impairment charge related to the decision to close a leased retail store location, of which $4 million related to property and equipment. The impairment charge is recorded within Loss (gain) on sale of assets and other asset charges in the Consolidated Statements of Operations. Refer to Note 11—Leases for additional information.

In fiscal 2025, as a result of the expected loss in volume related to the termination of the Company’s supply agreement with a customer in the East region, the Company determined that it was more likely than not that it would discontinue operations at the Allentown, Pennsylvania, distribution center. As a result, the Company conducted an impairment review and recorded a $24 million non-cash asset impairment charge during the third quarter of fiscal 2025, of which $11 million related to property and equipment. The fair value utilized in the Company’s impairment analysis was determined based on the income approach, and the impairment charge is recorded within Loss (gain) on sale of assets and other asset charges in the Consolidated Statements of Operations. Refer to Note 11—Leases for additional information.
In fiscal 2024, the Company determined that it was more likely than not that it would dispose of one of its corporate-owned office locations before the end of its previously estimated useful life. As a result, the Company conducted an impairment review and recorded a $21 million non-cash asset impairment charge in fiscal 2024. The fair value utilized in the Company’s impairment review was determined based on the market approach, and the impairment charge is recorded within Loss (gain) on sale of assets and other asset charges in the Consolidated Statements of Operations. In the fourth quarter of fiscal 2024, the Company sold certain long-lived assets related to this corporate-owned office location for an amount that approximated its net book value at the time of the sale. In the third quarter of fiscal 2026, the remaining assets previously held for sale were sold for an amount that approximated their net book value at the time of the sale.

During the fourth quarter of fiscal 2024, the Company recorded a $15 million non-cash impairment charge related to the decision to close certain leased and owned distribution center locations, of which $6 million related to property and equipment. During the third quarter of fiscal 2024, the Company recorded a $7 million non-cash asset impairment charge related to the decision to close certain retail store locations, of which $4 million related to property and equipment. The impairment charges are recorded within Loss (gain) on sale of assets and other asset charges in the Consolidated Statements of Operations. Refer to Note 11—Leases for additional information.