Note 15—Operating Leases:
Total operating lease cost is comprised of the following:
| | | | | | | | | | | | | | | | | | | | |
| | Year Ended |
| | January 30, 2026 | | January 31, 2025 | | February 2, 2024 |
| | (in millions) |
| Operating lease cost | | $ | 48 | | | $ | 48 | | | $ | 56 | |
| Variable lease cost | | 12 | | | 13 | | | 13 | |
| Short-term lease cost | | 3 | | | 2 | | | 2 | |
| Total lease cost | | $ | 63 | | | $ | 63 | | | $ | 71 | |
Lease cost is included primarily in "Cost of revenues" and "Selling, general and administrative expenses" on the consolidated statements of income.
The Company's ROU assets and lease liabilities consisted of the following: | | | | | | | | | | | | | | | | | | | | |
| | Balance Sheet line item | | January 30, 2026 | | January 31, 2025 |
| | | | (in millions) |
| Operating lease ROU asset | | Operating lease right of use assets | | $ | 193 | | | $ | 164 | |
| | | | | | |
| Operating lease current liability | | Other accrued liabilities | | 21 | | | 20 | |
| Operating lease non-current liability | | Operating lease liabilities | | 198 | | | 173 | |
| Total operating lease liabilities | | | | $ | 219 | | | $ | 193 | |
Other supplemental operating lease information consists of the following:
| | | | | | | | | | | | | | | | | | | | |
| | Year Ended |
| | January 30, 2026 | | January 31, 2025 | | February 2, 2024 |
| | (in millions) |
| Cash paid for amounts included in the measurement of operating lease liabilities | | $ | 50 | | | $ | 54 | | | $ | 59 | |
| ROU assets obtained in exchange for new operating lease obligations | | $ | 60 | | | $ | 51 | | | $ | 43 | |
Maturities of operating lease liabilities as of January 30, 2026 were as follows:
| | | | | | | | |
| Fiscal Year | | Total |
| | (in millions) |
| 2027 | | $ | 33 | |
| 2028 | | 30 | |
| 2029 | | 43 | |
| 2030 | | 32 | |
| 2031 | | 26 | |
| Thereafter | | 113 | |
| Total minimum lease payments | | 277 | |
| Less: imputed interest | | (58) | |
| Present value of operating lease liabilities | | $ | 219 | |
The weighted-average remaining lease term and the weighted-average discount rate was 7 years and 5.3% as of January 30, 2026, respectively, and 7 years and 5.2% as of January 31, 2025, respectively.
As of January 30, 2026, the Company had rental commitments of $29 million for facility leases that have not yet commenced. These operating leases have a weighted-average lease term of approximately 11 years.
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.