Leases
The Company leases certain retail locations, distribution and fulfillment centers, warehouses, office spaces, land and equipment throughout the U.S. and internationally. The Company's lease costs recognized in the Consolidated Statements of Income consist of the following:
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| | Fiscal Years Ended January 31, |
| (Amounts in millions) | | 2026 | | 2025 | | 2024 |
| Operating lease cost | | $ | 2,434 | | | $ | 2,347 | | $ | 2,277 |
| Finance lease cost: | | | | | | |
| Amortization of right-of-use assets | | 888 | | | 891 | | 755 |
| Interest on lease obligations | | 383 | | | 381 | | 326 |
| Variable lease cost | | 1,180 | | | 1,145 | | 1,082 |
Other lease information is as follows: | | | | | | | | | | | | | | | | | | | | |
| | Fiscal Years Ended January 31, |
| (Amounts in millions) | | 2026 | | 2025 | | 2024 |
| Cash paid for amounts included in measurement of lease obligations: | | | | | | |
| Operating cash flows from operating leases | | $ | 2,315 | | | $ | 2,390 | | | $ | 2,273 | |
| Operating cash flows from finance leases | | 377 | | | 375 | | | 315 | |
| Financing cash flows from finance leases | | 891 | | | 908 | | | 1,055 | |
| Assets obtained in exchange for operating lease obligations | | 2,303 | | | 1,974 | | | 1,514 | |
| Assets obtained in exchange for finance lease obligations | | 703 | | | 1,455 | | | 1,572 | |
| | | | | | | | | | | | | | |
| | As of January 31, |
| | 2026 | | 2025 |
| Weighted-average remaining lease term - operating leases | | 11.3 years | | 11.3 years |
| Weighted-average remaining lease term - finance leases | | 11.5 years | | 11.7 years |
| Weighted-average discount rate - operating leases | | 6.7% | | 6.5% |
| Weighted-average discount rate - finance leases | | 7.0% | | 6.7% |
The aggregate annual lease obligations at January 31, 2026, are as follows:
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| (Amounts in millions) | | | | |
| Fiscal Year | | Operating Leases | | Finance Leases |
| 2027 | | $ | 2,453 | | | $ | 1,228 | |
| 2028 | | 2,361 | | | 1,132 | |
| 2029 | | 2,214 | | | 955 | |
| 2030 | | 2,008 | | | 805 | |
| 2031 | | 1,796 | | | 692 | |
| Thereafter | | 11,792 | | | 6,003 | |
| Total undiscounted lease obligations | | 22,624 | | | 10,815 | |
| Less imputed interest | | (7,052) | | | (4,054) | |
| Net lease obligations | | $ | 15,572 | | | $ | 6,761 | |
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.