Leases
Our lease portfolio primarily consists of leases for our retail store locations, vehicles and trailers, as well as distribution center space and equipment.
The lease cost for operating leases that was recognized in the accompanying Consolidated Statements of Operations was as follows:
| | | | | | | | | | | | | | | | | | | | |
| | Year Ended |
| (in millions) | | January 31, 2026 | | February 1, 2025 | | February 3, 2024 |
Fixed lease cost | | $ | 1,131.9 | | | $ | 1,041.6 | | | $ | 948.1 | |
| Variable lease cost | | 367.0 | | | 328.9 | | | 296.0 | |
| Short-term lease cost | | 11.1 | | | 21.5 | | | 15.6 | |
| Total lease cost* | | $ | 1,510.0 | | | $ | 1,392.0 | | | $ | 1,259.7 | |
| | | | | | |
| *Excludes sublease income, which is immaterial | | | | |
There are no residual value guarantees that exist, and there are no restrictions or covenants imposed by leases.
As of January 31, 2026, maturities of lease liabilities were as follows:
| | | | | | | | |
Fiscal Year | | (in millions) |
| 2026 | | $ | 1,098.9 | |
| 2027 | | 1,071.1 | |
| 2028 | | 888.4 | |
| 2029 | | 715.9 | |
| 2030 | | 523.3 | |
| Thereafter | | 1,045.2 | |
| Total undiscounted lease payments | | 5,342.8 | |
| Less interest | | 718.9 | |
| Present value of lease liabilities | | $ | 4,623.9 | |
The future lease payments above exclude $57.4 million of legally binding minimum lease payments for leases signed but not yet commenced as of January 31, 2026.
Information regarding the weighted-average remaining lease term and the weighted-average discount rate for operating leases is as follows:
| | | | | | | | | | | | | | | | | | | | |
| | January 31, 2026 | | February 1, 2025 | | February 3, 2024 |
| Weighted-average remaining lease term (years) | | 5.7 | | 5.6 | | 5.4 |
| Weighted-average discount rate | | 4.9 | % | | 4.6 | % | | 4.0 | % |
The following represents supplemental information pertaining to our operating lease arrangements:
| | | | | | | | | | | | | | | | | | | | |
| | Year Ended |
| (in millions) | | January 31, 2026 | | February 1, 2025 | | February 3, 2024 |
| Cash paid for amounts included in the measurement of lease liabilities: | | | | | | |
| Operating cash flows from operating leases | | $ | 1,176.9 | | | $ | 1,047.6 | | | $ | 1,038.6 | |
| Right-of-use assets obtained in exchange for new operating lease liabilities | | $ | 1,207.0 | | | $ | 1,378.5 | | | $ | 1,113.0 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.