Quarterly report pursuant to Section 13 or 15(d)

Leases (Tables)

v3.19.2
Leases (Tables)
6 Months Ended
Aug. 03, 2019
Leases [Abstract]  
Lessee Lease [Table Text Block]
ROU assets and lease liabilities consist of:
 
 
August 3, 2019
 
Classification
(millions)
Assets
 
 
Finance lease assets (a)
Right of Use Assets
$
11

Operating lease assets (b)
Right of Use Assets
2,625

Total leased assets
 
$
2,636

 
 
 
Liabilities
 
 
Current
 
 
Finance
Accounts payable and accrued liabilities
$
1

Operating (b)
Accounts payable and accrued liabilities
350

 
 
 
Noncurrent
 
 
Finance
Long-Term Lease Liabilities
24

Operating (b)
Long-Term Lease Liabilities
2,812

Total lease liabilities
 
$
3,187

(a) Finance lease assets are recorded net of accumulated amortization of $12 million as of August 3, 2019.
Lease, Cost [Table Text Block]
The components of net lease expense are disclosed below. For the 13 and 26 weeks ended August 3, 2019, expense related to non-lease components was $21 million and $42 million, respectively, and variable lease expense was $3 million and $7 million, respectively.
 
 
13 Weeks Ended
 
26 Weeks Ended
 
 
August 3, 2019
 
August 3, 2019
 
Classification
(millions)
Operating lease expense (c)
Selling, general and administrative expenses
$
106

 
$
214

Sublease income
Selling, general and administrative expenses
(1
)
 
(1
)
Net lease expense
 
$
105

 
$
213

(c) Certain supply chain operating lease expense amounts are included in cost of sales.











Finance Lease, Liability, Maturity [Table Text Block]
As of August 3, 2019, the maturity of lease liabilities is as follows:
 
 
Finance
Leases (d)
 
Operating
Leases (e and f)
 
Total
 
(millions)
Fiscal year
 
 
 
 
 
2019
$
1

 
$
180

 
$
181

2020
3

 
332

 
335

2021
3

 
333

 
336

2022
3

 
311

 
314

2023
3

 
307

 
310

After 2023
31

 
5,385

 
5,416

Total undiscounted lease payments
44

 
6,848

 
6,892

Less amount representing interest
19

 
3,686

 
3,705

Total lease liabilities
$
25

 
$
3,162

 
$
3,187

(d) Finance lease payments include $12 million related to options to extend lease terms that are reasonably certain of being exercised.
(e) Operating lease payments include $3,292 million related to options to extend lease terms that are reasonably certain of being exercised and exclude $936 million of legally binding minimum lease payments for leases signed but not yet commenced.
Operating Lease Liability, Maturity [Table Text Block]
As of August 3, 2019, the maturity of lease liabilities is as follows:
 
 
Finance
Leases (d)
 
Operating
Leases (e and f)
 
Total
 
(millions)
Fiscal year
 
 
 
 
 
2019
$
1

 
$
180

 
$
181

2020
3

 
332

 
335

2021
3

 
333

 
336

2022
3

 
311

 
314

2023
3

 
307

 
310

After 2023
31

 
5,385

 
5,416

Total undiscounted lease payments
44

 
6,848

 
6,892

Less amount representing interest
19

 
3,686

 
3,705

Total lease liabilities
$
25

 
$
3,162

 
$
3,187

(d) Finance lease payments include $12 million related to options to extend lease terms that are reasonably certain of being exercised.
(e) Operating lease payments include $3,292 million related to options to extend lease terms that are reasonably certain of being exercised and exclude $936 million of legally binding minimum lease payments for leases signed but not yet commenced.
Schedule of Supplemental Information for Lease Assumptions and Cash Flows [Table Text Block]
Additional supplemental information regarding assumptions and cash flows for operating and finance leases is as follows:
 
August 3, 2019
Lease Term and Discount Rate
(millions)
Weighted-average remaining lease term (years)
 
Finance leases
18.0

Operating leases
23.7

Weighted-average discount rate
 
Finance leases
6.64
%
Operating leases
6.70
%

 
26 Weeks Ended
 
August 3, 2019
Other Information
 
Cash paid for amounts included in the measurement of lease liabilities
 
Operating cash flows used from operating leases
$
182

Financing cash flows used from financing leases
1

Leased assets obtained in exchange for new operating lease liabilities
39










Prior Period Disclosure: Schedule of Future Minimum Payments for Capital and Operating Leases [Table Text Block]
As of February 2, 2019, as disclosed in the 2018 10-K, minimum rental commitments for noncancellable leases, including executed leases not yet commenced, were as follows:
 
Capitalized
Leases (g)
 
Operating
Leases
 
Total
 
(millions)
Fiscal year
 
 
 
 
 
2019
$
3

 
$
325

 
$
328

2020
3

 
315

 
318

2021
3

 
309

 
312

2022
3

 
283

 
286

2023
3

 
264

 
267

After 2023
31

 
2,758

 
2,789

Total minimum lease payments
46

 
$
4,254

 
$
4,300

Less amount representing interest
20

 
 
 
 
Present value of net minimum capitalized lease payments
$
26

 
 
 
 
(g) For purposes of the disclosure, capitalized lease is used interchangeably with finance lease.