Annual report pursuant to Section 13 and 15(d)

Properties and Leases (Tables)

v3.20.1
Properties and Leases (Tables)
12 Months Ended
Feb. 01, 2020
Property Plant and Equipment and Leases of Lessee [Abstract]  
Lessee Lease [Table Text Block]
ROU assets and lease liabilities consist of:
 
 
February 1, 2020
 
Classification
(millions)
Assets
 
 
Finance lease assets (a)
Right of Use Assets
$
13

Operating lease assets (b)
Right of Use Assets
2,655

Total lease assets
 
$
2,668

 
 
 
Liabilities
 
 
Current
 
 
Finance (a)
Accounts payable and accrued liabilities
$
2

Operating (b)
Accounts payable and accrued liabilities
331

 
 
 
Noncurrent
 
 
Finance (a)
Long-Term Lease Liabilities
21

Operating (b)
Long-Term Lease Liabilities
2,897

Total lease liabilities
 
$
3,251

(a) Finance lease assets are recorded net of accumulated amortization of $12 million as of February 1, 2020. As of February 1, 2020, finance lease assets and noncurrent lease liabilities each included $2 million of non-lease components.
(b) As of February 1, 2020, operating lease assets included $403 million of non-lease components and current and noncurrent lease liabilities included $36 million and $397 million, respectively, of non-lease components.
Lease, Cost [Table Text Block]
The components of net lease expense, recognized primarily within selling, general and administrative expenses are disclosed below. For 2019, lease expense included $83 million related to non-lease components.
 
 
2019
 
2018
 
2017
 
(millions)
Real estate
 
 
 
 
 
Operating leases (c) –
 
 
 
 
 
Minimum rents
$
364

 
$
317

 
$
317

Variable rents
54

 
11

 
11

 
418

 
328

 
328

Less income from subleases –
 
 
 
 
 
Operating leases
(2
)
 
(1
)
 
(3
)
 
$
416

 
$
327

 
$
325

Personal property – Operating leases
$
8

 
$
9

 
$
10

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

Property, Plant and Equipment
The major classes of property and equipment, net as of February 1, 2020 and February 2, 2019 are as follows: 
 
February 1,
2020
 
February 2,
2019
 
(millions)
Land
$
1,436

 
$
1,454

Buildings on owned land
3,822

 
4,019

Buildings on leased land and leasehold improvements
1,365

 
1,404

Fixtures and equipment
4,402

 
4,230

Leased properties under capitalized leases (a)

 
25

 
11,025

 
11,132

Less accumulated depreciation and amortization (a)
4,392

 
4,495

 
$
6,633

 
$
6,637


Lessee, Finance Lease, Liability, Maturity [Table Text Block]
As of February 1, 2020, the maturity of lease liabilities is as follows:
 
Finance
Leases (d)
 
Operating
Leases (e and f)
 
Total
 
(millions)
Fiscal year
 
 
 
 
 
2020
$
3

 
$
362

 
$
365

2021
3

 
345

 
348

2022
3

 
322

 
325

2023
3

 
317

 
320

2024
3

 
300

 
303

After 2024
19

 
5,265

 
5,284

Total undiscounted lease payments
34

 
6,911

 
6,945

Less amount representing interest
11

 
3,683

 
3,694

Total lease liabilities
$
23

 
$
3,228

 
$
3,251


(d) Finance lease payments include $3 million related to non-lease component payments.
(e) Operating lease payments include $3,240 million related to options to extend lease terms that are reasonably certain of being exercised and exclude $706 million of legally binding minimum lease payments for leases signed but not yet commenced.
(f) Operating lease payments include $1,203 million related to non-lease component payments, with $876 million of such payments related to options to extend lease terms that are reasonably certain of being exercised.
Rental Expense
The components of net lease expense, recognized primarily within selling, general and administrative expenses are disclosed below. For 2019, lease expense included $83 million related to non-lease components.
 
 
2019
 
2018
 
2017
 
(millions)
Real estate
 
 
 
 
 
Operating leases (c) –
 
 
 
 
 
Minimum rents
$
364

 
$
317

 
$
317

Variable rents
54

 
11

 
11

 
418

 
328

 
328

Less income from subleases –
 
 
 
 
 
Operating leases
(2
)
 
(1
)
 
(3
)
 
$
416

 
$
327

 
$
325

Personal property – Operating leases
$
8

 
$
9

 
$
10

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

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:
 
February 1, 2020
Lease Term and Discount Rate
(millions)
Weighted-average remaining lease term (years)
 
Finance leases
12.7

Operating leases
23.3

Weighted-average discount rate
 
Finance leases
6.69
%
Operating leases
6.53
%

 
52 Weeks Ended
 
February 1, 2020
Other Information
 
Cash paid for amounts included in the measurement of lease liabilities:
 
Operating cash flows used from operating leases
$
363

Financing cash flows used from financing leases
2

Leased assets obtained in exchange for new operating lease liabilities
216


Lessee, Operating Lease, Liability, Maturity [Table Text Block]
As of February 1, 2020, the maturity of lease liabilities is as follows:
 
Finance
Leases (d)
 
Operating
Leases (e and f)
 
Total
 
(millions)
Fiscal year
 
 
 
 
 
2020
$
3

 
$
362

 
$
365

2021
3

 
345

 
348

2022
3

 
322

 
325

2023
3

 
317

 
320

2024
3

 
300

 
303

After 2024
19

 
5,265

 
5,284

Total undiscounted lease payments
34

 
6,911

 
6,945

Less amount representing interest
11

 
3,683

 
3,694

Total lease liabilities
$
23

 
$
3,228

 
$
3,251


(d) Finance lease payments include $3 million related to non-lease component payments.
(e) Operating lease payments include $3,240 million related to options to extend lease terms that are reasonably certain of being exercised and exclude $706 million of legally binding minimum lease payments for leases signed but not yet commenced.
(f) Operating lease payments include $1,203 million related to non-lease component payments, with $876 million of such payments related to options to extend lease terms that are reasonably certain of being exercised.