Property and equipment is stated at cost. Depreciation is computed using the straight-line method over the following estimated useful lives of the assets:
Leasehold improvements
Shorter of estimated useful life or lease term (generally 5 – 22 years)
Fixtures and equipment
2 – 15 years
Buildings and building improvements
10 – 40 years
Capitalized software
2 – 10 years
Corporate aircraft
24 years
Property and equipment consists of the following:
As of
(In thousands)February 1, 2026February 2, 2025
Capitalized software$1,005,775 $956,596 
Leasehold improvements898,320 883,414 
Fixtures and equipment894,423 869,371 
Land and buildings181,425 180,074 
Corporate aircraft52,710 — 
Corporate systems projects in progress76,387 43,158 
Construction in progress 1
30,284 40,399 
Total
3,139,324 2,973,012 
Accumulated depreciation(2,044,166)(1,939,078)
Property and equipment, net
$1,095,158 $1,033,934 
1Construction in progress primarily consists of leasehold improvements and fixtures and equipment related to new, expanded or remodeled stores and distribution centers where construction had not been completed as of year-end. For the fiscal year ended February 2, 2025, construction in progress also included the corporate aircraft.
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Historical Timeline

Fiscal YearFiled
2026Mar 26, 2026Showing above
2025Mar 27, 2025
2024Mar 20, 2024
2023Mar 24, 2023
2022Mar 28, 2022
2021Mar 30, 2021
2020Mar 27, 2020
2019Apr 4, 2019
2018Mar 29, 2018
2017Mar 30, 2017
2016Mar 31, 2016

About PP&E Disclosures

The PP&E disclosure details a company's physical asset base — land, buildings, machinery, and equipment — along with the depreciation methods and useful life assumptions that determine how these costs flow through the income statement. Capitalization policy thresholds reveal management's judgment on the boundary between expense and asset, directly affecting both reported earnings and asset values.

Key signals: changes in estimated useful lives or depreciation methods can materially shift reported earnings without any operational change. Compare capital expenditures against depreciation expense — when capex consistently trails depreciation, the asset base may be aging and underinvested. Watch for large asset impairments or write-downs that signal overvalued carrying amounts. Asset retirement obligations reveal future environmental or decommissioning costs that are often underappreciated. Compare PP&E intensity (PP&E-to-revenue) against industry peers to assess capital efficiency and competitive positioning.