Notes Payable and Long-Term Debt

6 Months Ended

Aug. 02, 2014

We obtain short-term financing from time to time under our commercial paper program, a form of notes payable.



Commercial Paper	Three Months Ended						Six Months Ended
(dollars in millions)	August 2, 2014			August 3, 2013			August 2, 2014			August 3, 2013
Maximum daily amount outstanding during the period	$	500		$	920		$	590		$	1,465
Average daily amount outstanding during the period	148			301			214			394
Amount outstanding at period-end	189			807			189			807
Weighted average interest rate	0.11		%	0.19		%	0.10		%	0.14		%

In June 2014, we issued $1 billion of unsecured fixed rate debt at 2.3% that matures in June 2019 and $1 billion of unsecured fixed rate debt at 3.5% that matures in July 2024. We used proceeds from these issuances to repurchase $725 million of debt at a market value of $1 billion and for general corporate purposes, including the payment of $1 billion of debt maturities. We recognized a loss of $285 million on the early retirement, which was recorded in net interest expense in our Consolidated Statements of Operations.

Concurrent with the sale of our credit card receivables portfolio in March 2013, we repaid $1.5 billion of nonrecourse debt collateralized by credit card receivables (the 2006/2007 Series Variable Funding Certificate). We also used $1.4 billion of proceeds from the transaction to repurchase at market value an additional $970 million of debt during the first quarter of 2013. We recognized a loss on this early retirement of $445 million, which was recorded in net interest expense in our Consolidated Statements of Operations. Refer to Note 3 for more information on our credit card receivables transaction.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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