LEASES
The Company enters into leasing transactions in which the Company is the lessee. These lease contracts are typically classified as operating leases. The Company’s lease contracts are generally for office space used to conduct its business, and the determination of whether such contracts contain leases generally does not require significant estimates or judgments. The Company also leases certain property, equipment, and warehouses. As of January 30, 2026, the remaining terms of the Company’s leases generally range from one month to approximately ten years. As of January 30, 2026 and January 31, 2025, there were no material finance leases in which the Company was a lessee.
The Company also enters into leasing transactions in which the Company is the lessor, primarily through customer financing arrangements offered under DFS. DFS originates leases that are primarily classified as either sales-type leases or operating leases. See Note 5 of the Notes to the Consolidated Financial Statements for more information about the Company’s lessor arrangements.
The following table presents components of lease costs included in the Consolidated Statements of Income for the periods indicated:
| | | | | | | | | | | | | | | | | | | | | |
| | | Fiscal Year Ended |
| | | | | January 30, 2026 | | January 31, 2025 | | February 2, 2024 |
| | | | | | | | | |
| | | | | (in millions) |
| Operating lease costs | | | | | $ | 239 | | | $ | 293 | | | $ | 291 | |
| Variable costs | | | | | 77 | | | 62 | | | 80 | |
| Total lease costs | | | | | $ | 316 | | | $ | 355 | | | $ | 371 | |
During the fiscal years ended January 30, 2026, January 31, 2025, and February 2, 2024, sublease income, finance lease costs, and short-term lease costs were immaterial.
The following table presents supplemental information related to operating leases included in the Consolidated Statements of Financial Position as of the dates indicated:
| | | | | | | | | | | | | | | | | | | |
| Classification | | January 30, 2026 | | January 31, 2025 | | |
| | | | | | | |
| | | (in millions, except for term and discount rate) |
| Operating lease right-of-use assets | Other non-current assets | | $ | 640 | | $ | 660 | | |
| | | | | | | |
| Current operating lease liabilities | Accrued and other current liabilities | | $ | 246 | | $ | 236 | | |
| Non-current operating lease liabilities | Other non-current liabilities | | 481 | | 522 | | |
| Total operating lease liabilities | | | $ | 727 | | $ | 758 | | |
| | | | | | | |
| Weighted-average remaining lease term (in years) | | | 4.11 | | 4.36 | | |
| Weighted-average discount rate | | | 4.74 | % | | 5.14 | % | | |
The following table presents supplemental cash flow information related to leases for the periods indicated: | | | | | | | | | | | | | | | | | |
| Fiscal Year Ended |
| January 30, 2026 | | January 31, 2025 | | February 2, 2024 |
| | | | | |
| (in millions) |
| Cash paid for amounts included in the measurement of lease liabilities — operating cash outflows from operating leases | $ | 260 | | | $ | 271 | | | $ | 300 | |
| | | | | |
| Right-of-use assets obtained in exchange for new operating lease liabilities | $ | 146 | | | $ | 184 | | | $ | 247 | |
The following table presents the future maturity of the Company’s operating lease liabilities under non-cancelable leases and reconciles the undiscounted cash flows for these leases to the lease liability recognized on the Consolidated Statements of Financial Position as of the date indicated:
| | | | | |
| January 30, 2026 |
| |
| (in millions) |
| Fiscal 2027 | $ | 249 | |
| Fiscal 2028 | 199 | |
| Fiscal 2029 | 141 | |
| Fiscal 2030 | 98 | |
| Fiscal 2031 | 54 | |
| Thereafter | 58 | |
| Total lease payments | 799 | |
| Less: Imputed interest | 72 | |
| Total | $ | 727 | |
| Current operating lease liabilities | $ | 246 | |
| Non-current operating lease liabilities | $ | 481 | |
As of January 30, 2026, the Company’s undiscounted operating leases that had not yet commenced were immaterial.