Leases (Tables)

6 Months Ended

Jul. 31, 2021

Leases [Abstract]

Summary of Operating and Finance Leases

The following tables summarize our operating and finance leases and where they are presented in our Consolidated Financial Statements:

Consolidated Balance Sheets
(Dollars in Millions)	Classification	July 31, 2021	January 30, 2021
Assets
Operating leases	Operating leases	$2,301	$2,398
Finance leases	Property & equipment, net	1,226	708
Total operating & finance leases		3,527	3,106
Liabilities
Current
Operating leases	Current portion of operating leases	143	161
Finance leases	Current portion of finance leases & financing obligations	83	76
Noncurrent
Operating leases	Operating leases	2,532	2,625
Finance leases	Finance leases & financing obligations	1,457	926
Total operating & finance leases		$4,215	$3,788

Consolidated Statement of Operations		Three Months Ended	Six Months Ended
(Dollars in Millions)	Classification	July 31, 2021	July 31, 2021
Operating leases	Selling, general, and administrative	$79	$156
Finance Leases
Amortization of leased assets	Depreciation and amortization	23	43
Interest on leased assets	Interest expense, net	27	52
Total operating and finance leases		$129	$251

Consolidated Statement of Cash Flows	Six Months Ended
(Dollars in Millions)	July 31, 2021
Cash paid for amounts included in the measurement of leased liabilities
Operating cash flows from operating leases	$165
Operating cash flows from finance leases	52
Financing cash flows from finance leases	47

Summary of Future Lease Payments

The following table summarizes future lease payments by fiscal year:

	July 31, 2021
(Dollars in millions)	Operating Leases	Finance Leases	Total
2021	$143	$96	$239
2022	289	185	474
2023	277	166	443
2024	248	151	399
2025	234	145	379
After 2025	3,492	2,467	5,959
Total lease payments	$4,683	$3,210	$7,893
Amount representing interest	(2,008)	(1,670)	(3,678)
Lease liabilities	$2,675	$1,540	$4,215

Summary of Weighted-Average Remaining Lease Term and Discount Rates

The following table summarizes weighted-average remaining lease term and discount rate:

	July 31, 2021	January 30, 2021
Weighted-average remaining term (years)
Operating leases	20	19
Finance leases	19	18
Weighted-average discount rate
Operating leases	6%	6%
Finance leases	7%	10%

Summary of Other Lease Information

Other lease information is as follows:

	Six Months Ended	Six Months Ended
(Dollars in Millions)	July 31, 2021	August 1, 2020
Property and equipment acquired (disposed) through:
Finance lease liabilities	$569	$56
Operating lease liabilities	(29)	103

Summary of Financing Obligations

The following tables summarize our financing obligations and where they are presented in our Consolidated Financial Statements:

Consolidated Balance Sheets
(Dollars in millions)	Classification	July 31, 2021	January 30, 2021
Assets
Financing obligations	Property & equipment, net	$60	$65
Liabilities
Current	Current portion of finance leases & financing obligations	34	39
Noncurrent	Finance leases & financing obligations	449	461
Total financing obligations		$483	$500

Consolidated Statement of Operations		Three Months Ended	Six Months Ended
(Dollars in Millions)	Classification	July 31, 2021	July 31, 2021
Amortization of financing obligation assets	Depreciation and amortization	3	5
Interest on financing obligations	Interest expense, net	10	19
Total financing obligations		$13	$24

Consolidated Statement of Cash Flows	Six Months Ended
(Dollars in Millions)	July 31, 2021
Cash paid for amounts included in the measurement of financing obligations
Operating cash flows from financing obligations	$19
Financing cash flows from financing obligations	18
Proceeds from financing obligations	4

Summary of Future Financing Obligation Payments

The following table summarizes future financing obligation payments by fiscal year:

	July 31, 2021
(Dollars in millions)	Financing Obligations
2021	$34
2022	71
2023	69
2024	64
2025	55
After 2025	369
Total lease payments	$662
Non-cash gain on future sale of property	219
Amount representing interest	(398)
Financing obligation liability	$483

Summary of Weighted-Average Remaining Term and Discount Rate for Financing Obligations

The following table summarizes the weighted-average remaining term and discount rate for financing obligations:

	July 31, 2021	January 30, 2021
Weighted-average remaining term (years)	9	8
Weighted-average discount rate	9%	7%