Notes Payable and Long-Term Debt

12 Months Ended

Jan. 30, 2016

In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs. ASU 2015-03 amended ASC 835-30 Interest-Imputation of Debt Interest, to simplify the presentation of deferred issuance costs by requiring they be classified as a direct reduction of the debt balances. We have retrospectively adopted this ASU for the year ended January 30, 2016. As a result, $63 million and $71 million of deferred issuance costs have been reclassified from Other noncurrent assets to Long-term debt and other borrowings in our Consolidated Statements of Financial Position as of January 30, 2016 and January 31, 2015, respectively.

At January 30, 2016, the carrying value and maturities of our debt portfolio were as follows:



Debt Maturities	January 30, 2016
(dollars in millions)	Rate ^(a)		Balance
Due 2016-2020	4.8	%	$	5,268
Due 2021-2025	3.5		2,104
Due 2026-2030	6.7		244
Due 2031-2035	6.5		762
Due 2036-2040	6.7		2,010
Due 2041-2045	4.0		1,471
Total notes and debentures	4.9		11,859
Swap valuation adjustments			42
Capital lease obligations			859
Less: Amounts due within one year			(815		)
Long-term debt			$	11,945


^(a)	Reflects the weighted average stated interest rate as of year-end.



Required Principal Payments (millions)	2016		2017		2018		2019		2020
Total required principal payments	$	751	$	2,251	$	201	$	1,001	$	1,094

In June 2014, we issued $1 billion of unsecured fixed rate debt at 2.3 percent that matures in June 2019 and $1 billion of unsecured fixed rate debt at 3.5 percent that matures in July 2024. We used proceeds from these issuances to repurchase $725 million of debt before its maturity 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.

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



Commercial Paper (dollars in millions)	2015			2014			2013
Maximum daily amount outstanding during the year	$	—		$	590		$	1,465
Average amount outstanding during the year	—			129			408
Amount outstanding at year-end	—			—			80
Weighted average interest rate	—		%	0.11		%	0.13		%

No balances were outstanding at any time during 2015 or 2014 under our $2.25 billion revolving credit facility that expires in October 2018.

Substantially all of our outstanding borrowings are senior, unsecured obligations. Most of our long-term debt obligations contain covenants related to secured debt levels. In addition to a secured debt level covenant, our credit facility also contains a debt leverage covenant. We are, and expect to remain, in compliance with these covenants, which have no practical effect on our ability to pay dividends.