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Long-Term Debt and Credit Lines
 12 Months Ended
Feb. 02, 2013
Long-Term Debt and Credit Lines

Note J.    Long-Term Debt and Credit Lines

The table below presents long-term debt, exclusive of current installments, as of February 2, 2013 and January 28, 2012. All amounts are net of unamortized debt discounts.

 

In thousands    February 2,
2013		      January 28,
2012		  

General corporate debt:

      

4.20% senior unsecured notes, maturing August 15, 2015 (effective interest rate of 4.20% after reduction of unamortized debt discount of $13 and $19 in fiscal 2013 and 2012, respectively)

    $ 399,987       $ 399,981   

6.95% senior unsecured notes, maturing April 15, 2019 (effective interest rate of 6.98% after reduction of unamortized debt discount of $435 and $505 in fiscal 2013 and 2012, respectively)

      374,565         374,495   

Long-term debt, exclusive of current installments

    $ 774,552       $ 774,476   

 

The aggregate maturities of long-term debt, exclusive of current installments at February 2, 2013 are as follows:

 

In thousands    Long-
Term Debt		  

Fiscal Year

   

2015

    $ —   

2016

      400,000   

2017

      —   

2018

      —   

Later years

      375,000   

Less amount representing unamortized debt discount

      (448 ) 

Aggregate maturities of long-term debt, exclusive of current installments

    $ 774,552   

At February 2, 2013, TJX had outstanding $375 million aggregate principal amount of 6.95% ten-year notes due April 2019 and $400 million aggregate principal amount of 4.20% six-year notes due August 2015. TJX entered into rate-lock agreements to hedge the underlying treasury rate of all of the 6.95% notes and $250 million of the 4.20% notes prior to the issuance of the notes. The costs of these agreements are being amortized to interest expense over the term of the respective notes, resulting in an effective fixed interest rate of 7.00% for the 6.95% notes and 4.19% for the 4.20% notes.

At February 2, 2013, TJX had two $500 million revolving credit facilities, one which matures in June 2017 and one which matures in May 2016. The agreement maturing in 2017 replaced a revolving credit agreement maturing in May 2013. As of February 2, 2013 and January 28, 2012 and during the years then ended, there were no amounts outstanding under these facilities. At February 2, 2013 the agreements require quarterly payments on the unused committed amounts of 8.0 basis points for the agreement maturing in 2017 and 12.5 basis points for the agreement maturing in 2016. These rates are based on the credit ratings of TJX’s long-term debt and would vary with changes in the credit ratings. These agreements have no compensating balance requirements and have various covenants including a requirement of a specified ratio of debt to earnings.

 

As of February 2, 2013 and January 28, 2012, TJX’s foreign subsidiaries had uncommitted credit facilities. TJX Canada had two credit lines, a C$10 million facility for operating expenses and a C$10 million letter of credit facility. As of February 2, 2013 and January 28, 2012, and during the years then ended there were no amounts outstanding on the Canadian credit line for operating expenses. As of February 2, 2013 and January 28, 2012, TJX Europe had a credit line of £20 million. The maximum amount outstanding under this U.K. line was £7.3 million in fiscal 2013 and there were no borrowings under this credit line in fiscal 2012. There were no amounts outstanding under this U.K. credit line at the end of fiscal 2013 or fiscal 2012.