Leases

12 Months Ended

Jan. 30, 2021

Leases [Abstract]

Leases

7.   Leases

Supplemental balance sheet information related to our leases was as follows ($ in millions):

	Balance Sheet Location	January 30, 2021		February 1, 2020
Assets
Operating leases	Operating lease assets	$	2,612	$	2,709
Finance leases	Property under finance leases, net(1)		37		35
Total lease assets		$	2,649	$	2,744
Liabilities
Current:
Operating leases	Current portion of operating lease liabilities	$	693	$	660
Finance leases	Current portion of long-term debt		14		14
Non-current:
Operating leases	Long-term operating lease liabilities		2,012		2,138
Finance leases	Long-term debt		24		24
Total lease liabilities		$	2,743	$	2,836

(1)Finance leases were recorded net of accumulated depreciation of $36 million and $54 million as of January 30, 2021, and February 1, 2020, respectively.

Components of our total lease cost were as follows ($ in millions):

	Statement of Earnings Location	2021		2020
Operating lease cost(1)	Cost of sales and SG&A(2)	$	777	$	780
Finance lease cost:
Depreciation of lease assets	Cost of sales and SG&A(2)		13		13
Interest on lease liabilities	Interest expense		1		2
Variable lease cost	Cost of sales and SG&A(2)		249		265
Sublease income	SG&A		(16)		(16)
Total lease cost		$	1,024	$	1,044

(1)Includes short-term leases, which are immaterial.

(2)Supply chain-related amounts are included in Cost of sales.

Other information related to our leases was as follows ($ in millions):

	2021			2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	795		$	810
Operating cash flows from finance leases		1			2
Financing cash flows from finance leases		15			15
Lease assets obtained in exchange for new lease liabilities:
Operating leases		608			676
Finance leases		33			10
Weighted average remaining lease term (in years):
Operating leases		5.1			5.3
Finance leases		5.6			5.0
Weighted average discount rate:
Operating leases		2.9	%		3.3	%
Finance leases		2.9	%		4.2	%

Future lease payments under our non-cancellable leases as of January 30, 2021, were as follows ($ in millions):

	Operating Leases(1)		Finance Leases(1)
Fiscal 2022	$	741	$	14
Fiscal 2023		643		10
Fiscal 2024		504		7
Fiscal 2025		381		4
Fiscal 2026		256		2
Thereafter		392		4
Total future undiscounted lease payments		2,917		41
Less imputed interest		212		3
Total reported lease liability	$	2,705	$	38

(1)Lease payments exclude $56 million of legally binding fixed costs for leases signed but not yet commenced.