Table of Contents Leases ITEM 7A, QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK ITEM 8, FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA INDEX TO FINANCIAL STATEMENTS We recognize lease assets and corresponding lease liabilities for all operating leases on the Consolidated Balance Sheets as described under ASU No. 2016-02, “Leases (Topic 842).” We evaluate renewal options and break options at lease inception and on an ongoing basis, and include renewal options and break options that we are reasonably certain to exercise in our expected lease terms for calculations of the right-of-use assets and liabilities. Approximately 2% of our leases contain renewal options. To determine the present value of lease payments not yet paid, we estimate incremental borrowing rates corresponding to the reasonably certain lease term. As most of our leases do not provide a determinable implicit rate, we estimate our collateralized incremental borrowing rate based upon a synthetic credit rating and yield curve analysis at the lease commencement or modification date in determining the present value of lease payments. For lease payments in foreign currencies, the incremental borrowing rate is adjusted to be reflective of the risk associated with the respective currency. See Item 8, Note 8, "Leases", to our Consolidated Financial Statements included in this Annual Report on Form 10-K for additional information related to leases. We incorporate by reference the information regarding market risk appearing under the heading “Financial Market Risk” in Item 7, "Management’s Discussion and Analysis of Financial Condition and Results of Operations." 38 Page Report of Independent Registered Public Accounting Firm on Internal Control over Financial Reporting 39 Report of Independent Registered Public Accounting Firm 40 Consolidated Balance Sheets, February 1, 2020 and February 2, 2019 43 Consolidated Statements of Operations, each of the three fiscal years ended 2020, 2019 and 2018 45 Consolidated Statements of Comprehensive Income, each of the three fiscal years ended 2020, 2019 and 2018 46 Consolidated Statements of Cash Flows, each of the three fiscal years ended 2020, 2019 and 2018 47 Consolidated Statements of Equity, each of the three fiscal years ended 2020, 2019 and 2018 48 Notes to Consolidated Financial Statements 49