Leases (Tables)

9 Months Ended

Nov. 02, 2019



	Balance Sheet Location	November 2, 2019
Assets
Operating leases	Operating lease assets	$	2,751
Finance leases	Property and equipment, net⁽¹⁾		36
Total lease assets		$	2,787
Liabilities
Current:
Operating leases	Current portion of operating lease liabilities	$	644
Finance leases	Current portion of long-term debt		14
Non-current:
Operating leases	Long-term operating lease liabilities		2,200
Finance leases	Long-term debt		25
Total lease liabilities		$	2,883

(1)Finance leases are recorded net of accumulated depreciation of $51 million.

Components of Lease Cost


		Three Months Ended		Nine Months Ended
	Statement of Earnings Location	November 2, 2019		November 2, 2019
Operating lease cost⁽¹⁾	Cost of goods sold and SG&A⁽²⁾	$	196	$	585
Finance lease cost:
Depreciation of lease assets	Cost of goods sold and SG&A⁽²⁾		3		10
Interest on lease liabilities	Interest expense		-		1
Variable lease cost	Cost of goods sold and SG&A⁽²⁾		66		201
Sublease income	SG&A		(3)		(12)
Total lease cost		$	262	$	785

(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		Nine Months Ended
	November 2, 2019		November 2, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	204	$	608
Operating cash flows from finance leases		-		1
Financing cash flows from finance leases		3		11
Lease assets obtained in exchange for new lease liabilities:
Operating leases		157		551
Finance leases		4		8

			November 2, 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				4.2	%

Future Lease Payments


	Operating Leases⁽¹⁾		Finance Leases⁽¹⁾
Remainder of fiscal 2020	$	139	$	4
Fiscal 2021		777		14
Fiscal 2022		646		10
Fiscal 2023		494		6
Fiscal 2024		369		3
Fiscal 2025		260		2
Thereafter		440		5
Total future undiscounted lease payments		3,125		44
Less imputed interest		281		5
Total reported lease liability	$	2,844	$	39

(1)Lease payments exclude $19 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.