Leases (Tables)

6 Months Ended

Aug. 03, 2019



	Balance Sheet Location	August 3, 2019
Assets
Operating leases	Operating lease assets	$	2,774
Finance leases	Property and equipment, net⁽¹⁾		36
Total lease assets		$	2,810
Liabilities
Current:
Operating leases	Current portion of operating lease liabilities	$	643
Finance leases	Current portion of long-term debt		14
Non-current:
Operating leases	Long-term operating lease liabilities		2,230
Finance leases	Long-term debt		25
Total lease liabilities		$	2,912

(1)Finance leases are recorded net of accumulated depreciation of $48 million.

Components of Lease Cost


		Three Months Ended		Six Months Ended
	Statement of Earnings Location	August 3, 2019		August 3, 2019
Operating lease cost⁽¹⁾	Cost of goods sold and SG&A⁽²⁾	$	194	$	389
Finance lease cost:
Depreciation of lease assets	Cost of goods sold and SG&A⁽²⁾		4		7
Interest on lease liabilities	Interest expense		-		1
Variable lease cost	Cost of goods sold and SG&A⁽²⁾		68		135
Sublease income	SG&A		(5)		(9)
Total lease cost		$	261	$	523

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

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

Other Information


	Three Months Ended		Six Months Ended
	August 3, 2019		August 3, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	203	$	404
Operating cash flows from finance leases		-		1
Financing cash flows from finance leases		4		8
Lease assets obtained in exchange for new lease liabilities:
Operating leases		247		394
Finance leases		2		4

			August 3, 2019
Weighted average remaining lease term:
Operating leases				5.4 years
Finance leases				5.2 years
Weighted average discount rate:
Operating leases				3.4	%
Finance leases				4.4	%

Future Lease Payments


	Operating Leases⁽¹⁾		Finance Leases⁽¹⁾
Remainder of fiscal 2020	$	341	$	8
Fiscal 2021		756		13
Fiscal 2022		619		9
Fiscal 2023		466		5
Fiscal 2024		340		3
Fiscal 2025		234		2
Thereafter		407		5
Total future undiscounted lease payments		3,163		45
Less imputed interest		(290)		(6)
Total reported lease liability	$	2,873	$	39

(1)Lease payments exclude $30 million of legally binding fixed costs for leases signed but not yet commenced, primarily related to operating leases.

Future Lease Payments Under ASC 840



	Capital Leases		Financing Leases		Operating Leases⁽¹⁾
Fiscal 2020	$	14	$	48	$	700
Fiscal 2021		11		42		648
Fiscal 2022		7		35		513
Fiscal 2023		4		24		371
Fiscal 2024		2		16		253
Thereafter		7		40		476
Total minimum lease payments		45		205	$	2,961
Less amount representing interest		(6)		(24)
Present value of minimum lease payments		39		181
Less current maturities		(12)		(43)
Present value of minimum lease maturities, less current maturities	$	27	$	138

(1)Operating lease obligations do not include payments to landlords covering real estate taxes and common area maintenance. These charges, if included, would have increased total operating lease obligations by $0.8 billion at February 2, 2019.