Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.23.3
Leases
9 Months Ended
Oct. 28, 2023
Leases  
Leases

5.Leases

The Company leases retail stores, distribution centers, fast fulfillment centers, market fulfillment centers, corporate offices, and certain equipment under non-cancelable operating leases with various expiration dates through 2036. All leases are classified as operating leases and generally have initial lease terms of 10 years and, when determined applicable, include renewal options under substantially the same terms and conditions as the original leases. Leases do not contain any material residual value guarantees or material restrictive covenants.

Lease cost

The majority of operating lease cost relates to retail stores, distribution centers, fast fulfillment centers, and market fulfillment centers and is classified within cost of sales. Operating lease cost for corporate offices is classified within selling, general and administrative expenses. Operating lease cost from the control date through store opening date is classified within pre-opening expenses.




The following table presents a summary of operating lease costs:

13 Weeks Ended

39 Weeks Ended

October 28,

October 29,

October 28,

October 29,

(In thousands)

2023

2022

2023

2022

Operating lease cost

$

84,074

$

80,371

$

252,323

$

240,366

Other information

The following table presents supplemental disclosures of cash flow information related to operating leases:

    

39 Weeks Ended

October 28,

October 29,

(In thousands)

    

2023

2022

Cash paid for operating lease liabilities (1)

$

296,115

$

286,016

Operating lease assets obtained in exchange for operating lease liabilities (non-cash)

249,826

297,232

(1) Excludes $27,682 and $21,347 related to cash received for tenant incentives for the 39 weeks ended October 28, 2023 and October 29, 2022, respectively.