Leases
The following table provides the components of lease cost for operating leases for 2025, 2024 and 2023:
| | | | | | | | | | | | | | | | | |
| 2025 | | 2024 | | 2023 |
| (in millions) |
| Operating Lease Costs | $ | 280 | | | $ | 267 | | | $ | 254 | |
| Variable Lease Costs | 108 | | | 108 | | | 107 | |
| Short-term Lease Costs | 49 | | | 43 | | | 41 | |
| Total Lease Cost | $ | 437 | | | $ | 418 | | | $ | 402 | |
The following table provides future maturities of operating lease liabilities as of January 31, 2026:
| | | | | |
| Fiscal Year | (in millions) |
| 2026 | $ | 250 | |
| 2027 | 228 | |
| 2028 | 191 | |
| 2029 | 158 | |
| 2030 | 126 | |
| Thereafter | 317 | |
| Total Lease Payments | 1,270 | |
| Less: Interest | (208) | |
| Present Value of Operating Lease Liabilities | $ | 1,062 | |
The Company accounts for all fixed consideration in a lease as a single lease component. Therefore, the payments used to measure the lease liability include fixed minimum rentals along with fixed operating costs such as common area maintenance and utilities.
As of January 31, 2026, the Company had additional operating lease commitments that have not yet commenced of $43 million.
The following table provides the weighted-average remaining lease term and discount rate for operating lease liabilities as of January 31, 2026 and February 1, 2025:
| | | | | | | | | | | |
| January 31,
2026 | | February 1,
2025 |
| Weighted-average Remaining Lease Term (years) | 6.2 | | 6.1 |
| Weighted-average Discount Rate | 5.7 | % | | 5.8 | % |
The following table provides supplemental cash flow information related to the Company’s operating leases for 2025, 2024 and 2023:
| | | | | | | | | | | | | | | | | |
| 2025 | | 2024 | | 2023 |
| (in millions) |
| Cash paid for Operating Lease Liabilities (a) | $ | 287 | | | $ | 279 | | | $ | 280 | |
| Lease Assets obtained as a result of new or modified Lease Liabilities, net of terminations | 193 | | | 91 | | | 185 | |
________________(a)These payments are included within the Operating Activities section of the Consolidated Statements of Cash Flows.
Finance Leases
The Company leases certain fulfillment equipment under finance leases that expire at various dates through 2030. The Company records finance lease assets, net of accumulated amortization, in Property and Equipment, Net on the Consolidated Balance Sheets. Additionally, the Company records finance lease liabilities in Accrued Expenses and Other and Other Long-term Liabilities on the Consolidated Balance Sheets. Finance lease costs are comprised of the straight-line amortization of the lease asset and the accretion of interest expense under the effective interest method. The Company’s finance lease costs, assets and liabilities were not significant for any period presented.