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DEBT | 6 Months Ended
--- | ---
Aug. 02, 2024
Debt Disclosure [Abstract] |
DEBT | DEBT The following table summarizes the Company’s outstanding debt as of the dates indicated:
| August 2, 2024 |  | February 2, 2024
| (in millions)
Senior Notes | $ | 14,580 |  |  | $ | 15,607 |
Legacy Notes | 952 |  |  | 952 |
DFS Debt (Note 4) | 9,133 |  |  | 9,492 |
Other | 79 |  |  | 171 |
Total debt, principal amount | 24,744 |  |  | 26,222 |
Unamortized discount, net of unamortized premium | (112) |  |  | (114) |
Debt issuance costs | (110) |  |  | (114) |
Total debt, carrying value | $ | 24,522 |  |  | $ | 25,994 |
Total short-term debt, carrying value | $ | 6,711 |  |  | $ | 6,982 |
Total long-term debt, carrying value | $ | 17,811 |  |  | $ | 19,012 |
The Company completed the following transactions during the six months ended August 2, 2024: •the issuance of $1 billion principal amount of 5.40% Senior Notes due April 2034, the proceeds of which were utilized to prepay a portion of the outstanding 6.02% Senior Notes due June 2026; and •the repayment of $1 billion principal amount of the 4.00% Senior Notes due July 2024. Outstanding Debt Senior Notes — The Company completed offerings of multiple series of senior notes which were issued on June 1, 2016, June 22, 2016, March 20, 2019, April 9, 2020, December 13, 2021, January 24, 2023 and March 18, 2024 in aggregate principal amounts of $20.0 billion, $3.3 billion, $4.5 billion, $2.3 billion, $2.3 billion, $2.0 billion and $1.0 billion, respectively (collectively, the “Senior Notes”). The Senior Notes maturities range from 2025 through 2051. Interest rates on these borrowings are fixed, ranging from 3.38% to 8.35%, and interest is payable semiannually. Legacy Notes — The Company has outstanding unsecured notes and debentures (collectively, the “Legacy Notes”) that were issued by Dell Inc. (“Dell”), a wholly-owned subsidiary of Dell Technologies Inc., prior to the acquisition of Dell by Dell Technologies Inc. in the going-private transaction that closed in October 2013. The Legacy Notes’ maturities range from 2028 through 2040. Interest rates on these borrowings are fixed, ranging from 5.40% to 7.10%, and interest is payable semiannually. DFS Debt — See Note 4 and Note 7 of the Notes to the Condensed Consolidated Financial Statements, respectively, for discussion of DFS debt and the interest rate swap agreements that hedge a portion of that debt. Revolving Credit Facility — The Company’s revolving credit facility provides the Company with revolving commitments in an aggregate principal amount of $6.0 billion for general corporate purposes and includes a letter of credit sub-facility of up to $0.5 billion and a swing-line loan sub-facility of up to $0.5 billion. The revolving credit facility also allows the Company to obtain incremental additional commitments on one or more occasions in minimum amounts of $10 million. Borrowings under the revolving credit facility bear interest at a rate per annum equal to an applicable margin plus, at the borrowers’ option, either (a) the specified adjusted term Secured Overnight Financing Rate (“SOFR”) or (b) a base rate. The margin applicable to SOFR and base rate borrowings varies based upon the Company’s existing credit ratings. The base rate is calculated based upon the greatest of the specified prime rate, the specified federal reserve bank rate, or SOFR plus 1%. The borrowers may voluntarily repay outstanding loans at any time without premium or penalty, other than customary breakage costs. The facility matures on November 1, 2027. As of August 2, 2024, the Company had no outstanding borrowings under the revolving credit facility. Commercial Paper Program — The Company maintains a commercial paper program under which the Company may issue unsecured notes in a maximum aggregate face amount of $5.0 billion outstanding at any time, with maturities up to 397 days from the date of issuance. The notes are sold on customary terms in the U.S. commercial paper market on a private placement basis. The proceeds of the notes are used for general corporate purposes. As of August 2, 2024, the Company had no outstanding issuances under the commercial paper program. The Company may purchase, redeem, prepay, refinance, or otherwise retire any amount of outstanding indebtedness under the terms of such indebtedness at any time and from time to time, in open market or negotiated transactions with the holders of such indebtedness or otherwise, as considered appropriate in light of market conditions and other relevant factors. Covenants — The credit agreement governing the revolving credit facility and the indentures governing the Senior Notes and the Legacy Notes impose various limitations, subject to exceptions, on creating certain liens and entering into sale and lease-back transactions. The foregoing credit agreement and indentures contain customary events of default, and the revolving credit facility is subject to an interest coverage ratio covenant that is tested at the end of each fiscal quarter with respect to the Company’s preceding four fiscal quarters. The Company was in compliance with this financial covenant as of August 2, 2024. Aggregate Future Maturities The following table presents the aggregate future maturities of the Company’s debt as of August 2, 2024, excluding associated carrying value adjustments, for the periods indicated:
| August 2, 2024
| (in millions)
Fiscal 2025 (remaining six months) | $ | 2,796 |
Fiscal 2026 | 4,567 |
Fiscal 2027 | 5,838 |
Fiscal 2028 | 1,195 |
Fiscal 2029 | 1,326 |
Thereafter | 9,022 |
Total maturities, principal amount | $ | 24,744 |

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