Leases (Tables)

3 Months Ended

May 04, 2019



	Balance Sheet Location	May 4, 2019
Assets
Operating leases	Operating lease assets	$	2,708
Finance leases	Property and equipment, net(1)		41
Total lease assets		$	2,749
Liabilities
Current:
Operating leases	Current portion of operating lease liabilities	$	639
Finance leases	Current portion of long-term debt		14
Non-current:
Operating leases	Long-term operating lease liabilities		2,173
Finance leases	Long-term debt		27
Total lease liabilities		$	2,853

(1)

Finance leases are recorded net of accumulated depreciation of $41 million as of May 4, 2019.

Components of Lease Cost



	Statement of Earnings Location	Three Months Ended May 4, 2019
Operating lease cost(1)	Cost of goods sold and SG&A(2)	$	195
Finance lease cost:
Depreciation of lease assets	Cost of goods sold and SG&A(2)		3
Interest on lease liabilities	Interest expense		1
Variable lease cost	Cost of goods sold and SG&A(2)		67
Sublease income	SG&A		(4)
Total lease cost		$	262

(1)

Includes short-term leases, which are immaterial.

(2)

Supply chain-related amounts are included in Cost of goods sold.

Other Information



	Three Months Ended May 4, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	201
Operating cash flows from finance leases		1
Financing cash flows from finance leases		4
Lease assets obtained in exchange for new lease liabilities:
Operating leases		147
Finance leases		2

Weighted average remaining lease term:
Operating leases		5.4 years
Finance leases		5.3 years
Weighted average discount rate:
Operating leases		3.4	%
Finance leases		4.4	%

Future Lease Payments



	Operating Leases(1)		Finance Leases(1)
Remainder of fiscal 2020	$	539	$	11
Fiscal 2021		708		13
Fiscal 2022		570		8
Fiscal 2023		418		4
Fiscal 2024		293		3
Fiscal 2025		187		2
Thereafter		378		5
Total future undiscounted lease payments		3,093		46
Less imputed interest		(281)		(5)
Total reported lease liability	$	2,812	$	41

(1)

Lease payments exclude $51 million of legally binding fixed costs for leases signed but not yet commenced, primarily related to operating leases.

Future Lease Payments Under ASC 840



	Capital Leases		Financing Leases		Operating Leases(1)
Fiscal 2020	$	14	$	48	$	700
Fiscal 2021		11		42		648
Fiscal 2022		7		35		513
Fiscal 2023		4		24		371
Fiscal 2024		2		16		253
Thereafter		7		40		476
Total minimum lease payments		45		205	$	2,961
Less amount representing interest		(6)		(24)
Present value of minimum lease payments		39		181
Less current maturities		(12)		(43)
Present value of minimum lease maturities, less current maturities	$	27	$	138

(1)

Operating lease obligations do not include payments to landlords covering real estate taxes and common area maintenance. These charges, if included, would have increased total operating lease obligations by $0.8 billion at February 2, 2019.