Leases (Tables)

9 Months Ended

Nov. 01, 2025

Leases [Abstract]

Summary of Operating and Finance Leases

The following tables summarize our operating and finance leases, which are predominately store related, and where they are presented in our Consolidated Financial Statements:

Consolidated Balance Sheets
(Dollars in Millions)	Classification	November 1, 2025	February 1, 2025	November 2, 2024
Assets
Operating leases	Operating leases	$2,354	$2,394	$2,500
Finance leases	Property and equipment, net	$1,582	$1,666	$1,727
Total operating and finance leases		$3,936	$4,060	$4,227
Liabilities
Current
Operating leases	Current portion of operating leases	$95	$102	$93
Finance leases	Current portion of finance leases and financing obligations	$76	$72	$72
Noncurrent
Operating leases	Operating leases	$2,667	$2,703	$2,799
Finance leases	Finance leases and financing obligations	$1,940	$2,008	$2,085
Total operating and finance leases		$4,778	$4,885	$5,049

Consolidated Statement of Operations		Three Months Ended		Nine Months Ended
(Dollars in Millions)	Classification	November 1, 2025	November 2, 2024	November 1, 2025	November 2, 2024
Operating leases	Selling, general, and administrative	$68	$70	$203	$208
Finance leases
Amortization of leased assets	Depreciation and amortization	27	28	81	86
Interest on leased assets	Interest expense, net	30	33	90	104
Total operating and finance leases		$125	$131	$374	$398

Consolidated Statement of Cash Flows	Nine Months Ended
(Dollars in Millions)	November 1, 2025	November 2, 2024
Cash paid for amounts included in the measurement of leased liabilities
Operating cash flows from operating leases	$207	$203
Operating cash flows from finance leases	88	101
Financing cash flows from finance leases	57	56

Summary of Future Lease Payments

The following table summarizes future lease payments by fiscal year:

	November 1, 2025
(Dollars in Millions)	Operating Leases	Finance Leases	Total
2025	$67	$46	$113
2026	266	188	454
2027	263	186	449
2028	260	183	443
2029	259	178	437
After 2029	3,758	2,710	6,468
Total lease payments	$4,873	$3,491	$8,364
Amount representing interest	(2,111)	(1,475)	(3,586)
Lease liabilities	$2,762	$2,016	$4,778

Summary of Weighted-Average Remaining Lease Term, Weighted-Average Remaining Contractually Obligated Lease Term, and Discount Rate

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

	November 1, 2025	February 1, 2025
Weighted-average remaining term (years)
Operating leases	18	19
Finance leases	18	19
Weighted-average remaining contractually obligated term (years)
Operating leases	4	4
Finance leases	5	5
Weighted-average discount rate
Operating leases	6%	6%
Finance leases	6%	6%

Summary of Other Lease Information

Other lease information is as follows:

	Nine Months Ended
(Dollars in Millions)	November 1, 2025	November 2, 2024
Property and equipment acquired (disposed) through exchange of:
Finance lease liabilities	($5)	($74)
Operating lease liabilities	35	78

Summary of Financing Obligations

The following tables summarize our financing obligations, which are all store related, and where they are presented in our Consolidated Financial Statements:

Consolidated Balance Sheets
(Dollars in Millions)	Classification	November 1, 2025	February 1, 2025	November 2, 2024
Assets
Financing obligations	Property and equipment, net	$37	$39	$41
Liabilities
Current	Current portion of finance leases and financing obligations	9	9	8
Noncurrent	Finance leases and financing obligations	448	448	448
Total financing obligations		$457	$457	$456

Consolidated Statement of Operations		Three Months Ended		Nine Months Ended
(Dollars in Millions)	Classification	November 1, 2025	November 2, 2024	November 1, 2025	November 2, 2024
Amortization of financing obligation assets	Depreciation and amortization	$1	$1	$3	$3
Interest on financing obligations	Interest expense, net	18	18	55	55
Total financing obligations		$19	$19	$58	$58

Consolidated Statement of Cash Flows	Nine Months Ended
(Dollars in Millions)	November 1, 2025	November 2, 2024
Cash paid for and proceeds from amounts included in the measurement of financing obligations
Operating cash flows from financing obligations	$54	$53
Financing cash flows from financing obligations	5	6
Proceeds from financing obligations	10	1

Summary of Future Financing Obligation Payments

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

	November 1, 2025
(Dollars in Millions)	Financing Obligations
2025	$20
2026	80
2027	80
2028	77
2029	76
After 2029	1,097
Total financing obligation payments	$1,430
Non-cash gain on future sale of property	116
Amount representing interest	(1,089)
Financing obligation liability	$457

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

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

	November 1, 2025	February 1, 2025
Weighted-average remaining term (years)	15	16
Weighted-average remaining contractually obligated term (years)	5	5
Weighted-average discount rate	16%	16%