Leases

12 Months Ended

Feb. 03, 2024

Leases [Abstract]

Leases

Leases

The following table provides the components of lease cost for operating leases for 2023, 2022 and 2021:

	2023		2022		2021
	(in millions)
Operating Lease Costs	$	393	$	385	$	399
Variable Lease Costs	92		76		63
Short-term Lease Costs	14		13		6
Total Lease Cost	$	499	$	474	$	468

In 2021, the Company recognized a reduction of $31 million to occupancy expenses as a result of COVID-19-related landlord concessions.

The following table provides future maturities of operating lease liabilities as of February 3, 2024:

Fiscal Year	(in millions)
2024	$	359
2025	338
2026	273
2027	214
2028	177
Thereafter	641
Total Lease Payments	$	2,002
Less: Interest	(423)
Present Value of Operating Lease Liabilities	$	1,579

As of February 3, 2024, the Company had additional operating lease commitments that have not yet commenced of approximately $120 million.

The following table provides the weighted-average remaining lease term and discount rate for operating leases with lease liabilities as of February 3, 2024 and January 28, 2023:

	February 3, 2024	January 28, 2023
Weighted-Average Remaining Lease Term (years)	7.0	6.6
Weighted-Average Discount Rate	6.6%	6.1%

The Company paid $406 million in 2023, $423 million in 2022 and $497 million in 2021 for operating lease liabilities recorded on the Consolidated Balance Sheets. These payments are included within the Operating Activities section of the Consolidated and Combined Statement of Cash Flows.

In 2023, 2022 and 2021, the Company obtained $392 million, $160 million and $120 million, respectively, of additional lease assets as a result of new operating lease obligations.

Asset Retirement Obligations

The Company has asset retirement obligations related to certain Company-operated international stores that contractually obligate the Company to remove leasehold improvements at the end of a lease. The Company's liabilities for asset retirement obligations totaled $8 million as of February 3, 2024 and $12 million as of January 28, 2023. These liabilities are included in Other Long-term Liabilities on the Consolidated Balance Sheets.

Leases

Leases

The following table provides the components of lease cost for operating leases for 2023, 2022 and 2021:

	2023		2022		2021
	(in millions)
Operating Lease Costs	$	393	$	385	$	399
Variable Lease Costs	92		76		63
Short-term Lease Costs	14		13		6
Total Lease Cost	$	499	$	474	$	468

In 2021, the Company recognized a reduction of $31 million to occupancy expenses as a result of COVID-19-related landlord concessions.

The following table provides future maturities of operating lease liabilities as of February 3, 2024:

Fiscal Year	(in millions)
2024	$	359
2025	338
2026	273
2027	214
2028	177
Thereafter	641
Total Lease Payments	$	2,002
Less: Interest	(423)
Present Value of Operating Lease Liabilities	$	1,579

As of February 3, 2024, the Company had additional operating lease commitments that have not yet commenced of approximately $120 million.

The following table provides the weighted-average remaining lease term and discount rate for operating leases with lease liabilities as of February 3, 2024 and January 28, 2023:

	February 3, 2024	January 28, 2023
Weighted-Average Remaining Lease Term (years)	7.0	6.6
Weighted-Average Discount Rate	6.6%	6.1%

The Company paid $406 million in 2023, $423 million in 2022 and $497 million in 2021 for operating lease liabilities recorded on the Consolidated Balance Sheets. These payments are included within the Operating Activities section of the Consolidated and Combined Statement of Cash Flows.

In 2023, 2022 and 2021, the Company obtained $392 million, $160 million and $120 million, respectively, of additional lease assets as a result of new operating lease obligations.

Asset Retirement Obligations

The Company has asset retirement obligations related to certain Company-operated international stores that contractually obligate the Company to remove leasehold improvements at the end of a lease. The Company's liabilities for asset retirement obligations totaled $8 million as of February 3, 2024 and $12 million as of January 28, 2023. These liabilities are included in Other Long-term Liabilities on the Consolidated Balance Sheets.