Leases
Net lease cost recognized on the Consolidated Statements of Operations is summarized as follows:
| | | | | | | | | | | | | | | | | |
| Fiscal Year |
| ($ in millions) | 2025 | | 2024 | | 2023 |
| Operating lease cost | $ | 907 | | | $ | 891 | | | $ | 823 | |
| Variable lease cost | 337 | | | 363 | | | 443 | |
| | | | | |
| Net lease cost | $ | 1,244 | | | $ | 1,254 | | | $ | 1,266 | |
As of January 31, 2026, the maturities of lease liabilities based on the total minimum lease commitment amount including options to extend lease terms that are reasonably certain of being exercised are as follows:
| | | | | |
| ($ in millions) | |
| Fiscal Year | |
| 2026 | $ | 860 | |
| 2027 | 824 | |
| 2028 | 710 | |
| 2029 | 609 | |
| 2030 | 487 | |
| Thereafter | 1,737 | |
| Total minimum lease payments | 5,227 | |
| Less: Interest | (1,108) | |
| Present value of operating lease liabilities | 4,119 | |
| Less: Current portion of operating lease liabilities | (634) | |
| |
| Long-term operating lease liabilities | $ | 3,485 | |
During fiscal 2025, 2024, and 2023, non-cash operating lease asset activity, net of remeasurements and modifications, was $841 million, $784 million, and $544 million, respectively. As of January 31, 2026 and February 1, 2025, the minimum lease commitment amount for operating leases signed but not yet commenced, primarily for retail stores, was $212 million and $59 million, respectively. The increase is primarily related to a retail store lease in Herald Square, New York City.
As of January 31, 2026 and February 1, 2025, the weighted-average remaining operating lease term was 7.5 years and 7.2 years, respectively, and the weighted-average discount rate was 6.4 percent for operating leases recognized on the Consolidated Financial Statements.
As of January 31, 2026 and February 1, 2025, the Company's finance leases were not material to the Consolidated Financial Statements.
See Note 1 of Notes to Consolidated Financial Statements for additional disclosures related to leases.