Leases (Tables)

3 Months Ended

Apr. 30, 2022

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	April 30, 2022	January 29, 2022	May 1, 2021
Assets
Operating leases	Operating leases	$2,224	$2,248	$2,392
Finance leases	Property and equipment, net	1,883	1,442	792
Total operating and finance leases		4,107	3,690	3,184
Liabilities
Current
Operating leases	Current portion of operating leases	127	145	159
Finance leases	Current portion of finance leases and financing obligations	82	87	74
Noncurrent
Operating leases	Operating leases	2,474	2,479	2,620
Finance leases	Finance leases and financing obligations	2,140	1,688	1,019
Total operating and finance leases		$4,823	$4,399	$3,872

Consolidated Statement of Operations		Quarter Ended
(Dollars in Millions)	Classification	April 30, 2022	May 1, 2021
Operating leases	Selling, general, and administrative	$69	$77
Finance leases
Amortization of leased assets	Depreciation and amortization	29	20
Interest on leased assets	Interest expense, net	32	25
Total operating and finance leases		$130	$122

Consolidated Statement of Cash Flows	Quarter Ended
(Dollars in Millions)	April 30, 2022	May 1, 2021
Cash paid for amounts included in the measurement of leased liabilities
Operating cash flows from operating leases	$70	$84
Operating cash flows from finance leases	30	25
Financing cash flows from finance leases	22	24

Summary of Future Lease Payments

The following table summarizes future lease payments by fiscal year:

	April 30, 2022
(Dollars in millions)	Operating Leases	Finance Leases	Total
2022	$195	$146	$341
2023	260	204	464
2024	235	195	430
2025	226	189	415
2026	219	188	407
After 2026	3,384	3,309	6,693
Total lease payments	$4,519	$4,231	$8,750
Amount representing interest	(1,918)	(2,009)	(3,927)
Lease liabilities	$2,601	$2,222	$4,823

Summary of Weighted-Average Remaining Lease Term and Discount Rates

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

	April 30, 2022	January 29, 2022
Weighted-average remaining term (years)
Operating leases	20	20
Finance leases	20	20
Weighted-average discount rate
Operating leases	6%	6%
Finance leases	6%	7%

Summary of Other Lease Information

Other lease information is as follows:

	Quarter Ended
(Dollars in Millions)	April 30, 2022	May 1, 2021
Property and equipment acquired through exchange of:
Finance lease liabilities	$472	$106
Operating lease liabilities	11	30

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	April 30, 2022	January 29, 2022	May 1, 2021
Assets
Financing obligations	Property and equipment, net	$53	$55	$62
Liabilities
Current	Current portion of finance leases and financing obligations	26	31	38
Noncurrent	Finance leases and financing obligations	444	445	454
Total financing obligations		$470	$476	$492

Consolidated Statement of Operations		Quarter Ended
(Dollars in Millions)	Classification	April 30, 2022	May 1, 2021
Amortization of financing obligation assets	Depreciation and amortization	2	2
Interest on financing obligations	Interest expense, net	12	9
Total financing obligations		$14	$11

Consolidated Statement of Cash Flows	Quarter Ended
(Dollars in Millions)	April 30, 2022	May 1, 2021
Cash paid for amounts included in the measurement of financing obligations
Operating cash flows from financing obligations	$12	$9
Financing cash flows from financing obligations	7	9
Proceeds from financing obligations	4	—

Summary of Future Financing Obligation Payments

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

	April 30, 2022
(Dollars in millions)	Financing Obligations
2022	$55
2023	73
2024	69
2025	64
2026	60
After 2026	648
Total lease payments	$969
Non-cash gain on future sale of property	185
Amount representing interest	(684)
Financing obligation liability	$470

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:

	April 30, 2022	January 29, 2022
Weighted-average remaining term (years)	12	10
Weighted-average discount rate	11%	9%