Property and Leases

12 Months Ended

Jan. 30, 2022

PROPERTY AND LEASES

Net Property and Equipment

The following table presents components of net property and equipment:


in millions	January 30, 2022		January 31, 2021
Land	$	8,617	$	8,543
Buildings and improvements	19,173		18,838
Furniture, fixtures, and equipment	16,441		15,119
Leasehold improvements	2,016		1,925
Construction in progress	1,139		1,068
Finance leases	3,943		3,308
Property and equipment, at cost	51,329		48,801
Less accumulated depreciation and finance lease amortization	26,130		24,096
Net property and equipment	$	25,199	$	24,705

The following table presents depreciation and finance lease amortization expense, including depreciation and finance lease amortization expense included in cost of sales:


in millions	Fiscal		Fiscal		Fiscal
	2021		2020		2019
Depreciation and finance lease amortization expense	$	2,650	$	2,425	$	2,223

Leases

The following table presents the consolidated balance sheet location of assets and liabilities related to operating and finance leases:


in millions	Consolidated Balance Sheet Caption	January 30, 2022		January 31, 2021
Assets:
Operating lease assets	Operating lease right-of-use assets	$	5,968	$	5,962
Finance lease assets (1)	Net property and equipment	2,896		2,493
Total lease assets		$	8,864	$	8,455

Liabilities:
Current:
Operating lease liabilities	Current operating lease liabilities	$	830	$	828
Finance lease liabilities	Current installments of long-term debt	198		66
Long-term:
Operating lease liabilities	Long-term operating lease liabilities	5,353		5,356
Finance lease liabilities	Long-term debt, excluding current installments	3,038		2,700
Total lease liabilities		$	9,419	$	8,950

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(1) Finance lease assets are recorded net of accumulated amortization of $1.0 billion as of January 30, 2022 and $815 million as of January 31, 2021.

The following table presents components of lease cost, excluding short-term lease cost and sublease income which are immaterial:


	Consolidated Statement of Earnings Caption (1)	Fiscal		Fiscal		Fiscal
in millions		2021		2020		2019
Operating lease cost	Selling, general and administrative	$	1,084	$	782	$	827
Finance lease cost:
Amortization of leased assets	Depreciation and amortization	250		167		86
Interest on lease liabilities	Interest expense	127		112		92
Variable lease cost	Selling, general and administrative	425		277		241
Net lease cost		$	1,886	$	1,338	$	1,246

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(1)Costs associated with our sourcing and distribution network are recorded in cost of sales, with the exception of interest on finance lease liabilities.

The following table presents weighted average remaining lease terms and discount rates:


	January 30, 2022		January 31, 2021
Weighted Average Remaining Lease Term (Years):
Operating leases	9		10
Finance leases	15		15

Weighted Average Discount Rate:
Operating leases	2.7	%	2.9	%
Finance leases	4.7	%	5.6	%

The following table presents approximate future minimum lease payments under operating and finance leases at January 30, 2022:


in millions	Operating Leases		Finance Leases
Fiscal 2022	$	1,005	$	328
Fiscal 2023	1,023		333
Fiscal 2024	902		326
Fiscal 2025	755		367
Fiscal 2026	646		259
Thereafter	2,764		2,585
Total lease payments	7,095		4,198
Less: imputed interest	912		962
Present value of lease liabilities	$	6,183	$	3,236

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Note: We have excluded approximately $1.3 billion of leases (undiscounted basis) that have not yet commenced. These leases will commence primarily between fiscal 2022 and 2023 with lease terms of up to 20 years.

The following table presents supplemental cash flow information related to leases:


	Fiscal		Fiscal		Fiscal
in millions	2021		2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows – operating leases	$	1,090	$	1,022	$	1,003
Operating cash flows – finance leases	127		112		92
Financing cash flows – finance leases	182		122		70
Supplemental non-cash information:
Lease assets obtained in exchange for new operating lease liabilities	964		969		748
Lease assets obtained in exchange for new finance lease liabilities	672		1,730		186