Leases

12 Months Ended

Jan. 28, 2023

Leases [Abstract]

Leases

7.   Leases

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

	Balance Sheet Location	January 28, 2023		January 29, 2022
Assets
Operating leases	Operating lease assets	$	2,746	$	2,654
Finance leases	Property under finance leases, net(1)		50		45
Total lease assets		$	2,796	$	2,699
Liabilities
Current:
Operating leases	Current portion of operating lease liabilities	$	638	$	648
Finance leases	Current portion of long-term debt		16		13
Non-current:
Operating leases	Long-term operating lease liabilities		2,164		2,061
Finance leases	Long-term debt		26		27
Total lease liabilities		$	2,844	$	2,749

(1)Finance leases were recorded net of accumulated depreciation of $50 million and $46 million as of January 28, 2023, and January 29, 2022, respectively.
‎

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

	Statement of Earnings Location	2023		2022		2021
Operating lease cost(1)	Cost of sales and SG&A(2)	$	780	$	770	$	777
Finance lease cost:
Depreciation of lease assets	Cost of sales and SG&A(2)		15		13		13
Interest on lease liabilities	Interest expense		1		1		1
Variable lease cost	Cost of sales and SG&A(2)		233		238		249
Sublease income	SG&A		(12)		(13)		(16)
Total lease cost		$	1,017	$	1,009	$	1,024

(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):

	2023			2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	781		$	814
Operating cash flows from finance leases		1			1
Financing cash flows from finance leases		18			18
Lease assets obtained in exchange for new lease liabilities:
Operating leases		809			759
Finance leases		18			21
Weighted average remaining lease term (in years):
Operating leases		5.1			5.1
Finance leases		5.5			5.0
Weighted average discount rate:
Operating leases		3.0	%		2.5	%
Finance leases		3.2	%		2.4	%

Future lease payments under our non-cancellable leases as of January 28, 2023, were as follows ($ in millions):

	Operating Leases(1)		Finance Leases(1)
Fiscal 2024	$	707	$	16
Fiscal 2025		670		14
Fiscal 2026		544		8
Fiscal 2027		432		3
Fiscal 2028		297		1
Thereafter		383		4
Total future undiscounted lease payments		3,033		46
Less imputed interest		231		4
Total reported lease liability	$	2,802	$	42

(1)Lease payments exclude $63 million of legally binding fixed costs for leases signed but not yet commenced.