Property and Leases (Tables)

9 Months Ended

Nov. 03, 2019

Leases [Abstract]

Schedule of assets and liabilities related to operating and finance leases

The consolidated balance sheet location of assets and liabilities related to operating and finance leases follow.

in millions	Consolidated Balance Sheet Caption	November 3, 2019
Assets:
Operating lease assets	Operating lease right-of-use assets	$	5,638
Finance lease assets	Net property and equipment	876
Total lease assets		$	6,514
Liabilities:
Current:
Operating lease liabilities	Current operating lease liabilities	$	828
Finance lease liabilities	Current installments of long-term debt	69
Long-term:
Operating lease liabilities	Long-term operating lease liabilities	5,113
Finance lease liabilities	Long-term debt, excluding current installments	1,035
Total lease liabilities		$	7,045

Lease information

Other lease information follows.

in millions	Nine Months Ended November 3, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows – operating leases	$	750
Operating cash flows – finance leases	69
Financing cash flows – finance leases	46
Leased assets obtained in exchange for new operating lease liabilities	589
Leased assets obtained in exchange for new finance lease liabilities	101

The components of lease cost follow.

in millions	Consolidated Statement of Earnings Caption	Three Months Ended November 3, 2019			Nine Months Ended November 3, 2019
Operating lease cost	Selling, general and administrative	$	211		$	626
Finance lease cost:
Amortization of leased assets	Depreciation and amortization	21			64
Interest on lease liabilities	Interest expense	23			69
Short-term lease cost	Selling, general and administrative	30			73
Variable lease cost	Selling, general and administrative	53			175
Sublease income	Selling, general and administrative	(3		)	(10		)
Net lease cost		$	335		$	997

ASU 2016-02 requires that public companies use a secured incremental borrowing rate as the discount rate for the present value of lease payments when the rate implicit in the contract is not readily determinable. We determine a secured rate on a quarterly basis and update the weighted average discount rate accordingly. Lease terms and discount rates follow.

	November 3, 2019
Weighted Average Remaining Lease Term (Years):
Operating leases	10
Finance leases	13
Weighted Average Discount Rate:
Operating leases	3.1	%
Finance leases	10.9	%

Schedule of future minimum rental payments for operating leases

The approximate future minimum lease payments under operating and finance leases at November 3, 2019 follow.

in millions	Operating Leases		Finance Leases
Fiscal 2019	$	239	$	40
Fiscal 2020	953		156
Fiscal 2021	845		154
Fiscal 2022	745		153
Fiscal 2023	650		147
Thereafter	3,274		1,074
Total lease payments	6,706		1,724
Less imputed interest	765		620
Present value of lease liabilities	$	5,941	$	1,104

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Note: Amounts presented do not include payments relating to immaterial leases excluded from the consolidated balance sheets as part of transition elections adopted upon implementation of Topic 842. Additionally, we have excluded approximately $1.6 billion of leases (undiscounted basis) that have not yet commenced. These leases will commence between 2019 and 2020 with lease terms of one to 20 years.

Schedule of future minimum rental payments for financing leases

The approximate future minimum lease payments under operating and finance leases at November 3, 2019 follow.

in millions	Operating Leases		Finance Leases
Fiscal 2019	$	239	$	40
Fiscal 2020	953		156
Fiscal 2021	845		154
Fiscal 2022	745		153
Fiscal 2023	650		147
Thereafter	3,274		1,074
Total lease payments	6,706		1,724
Less imputed interest	765		620
Present value of lease liabilities	$	5,941	$	1,104

—————

Note: Amounts presented do not include payments relating to immaterial leases excluded from the consolidated balance sheets as part of transition elections adopted upon implementation of Topic 842. Additionally, we have excluded approximately $1.6 billion of leases (undiscounted basis) that have not yet commenced. These leases will commence between 2019 and 2020 with lease terms of one to 20 years.

Schedule of future minimum rental payments for operating leases

The approximate future minimum lease payments under capital and operating leases at February 3, 2019 and accounted for under previous lease guidance follow.

in millions	Operating Leases		Capital Leases
Fiscal 2019	$	976	$	150
Fiscal 2020	912		167
Fiscal 2021	792		143
Fiscal 2022	682		142
Fiscal 2023	584		137
Thereafter	3,090		970
	$	7,036	1,709
Less imputed interest			660
Net present value of capital lease obligations			1,049
Less current installments			57
Long-term capital lease obligations, excluding current installments			$	992

Schedule of future minimum lease payments for capital leases

The approximate future minimum lease payments under capital and operating leases at February 3, 2019 and accounted for under previous lease guidance follow.

in millions	Operating Leases		Capital Leases
Fiscal 2019	$	976	$	150
Fiscal 2020	912		167
Fiscal 2021	792		143
Fiscal 2022	682		142
Fiscal 2023	584		137
Thereafter	3,090		970
	$	7,036	1,709
Less imputed interest			660
Net present value of capital lease obligations			1,049
Less current installments			57
Long-term capital lease obligations, excluding current installments			$	992