XML 27 R15.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Debt (Notes) | 9 Months Ended
--- | ---
Nov. 03, 2018
Debt Disclosure [Abstract] |
Debt | Debt Short-Term Debt U.S. Revolving Credit Facility On April 17, 2018, we entered into a $1.25 billion five-year senior unsecured revolving credit facility agreement (the "Five-Year Facility Agreement") with a syndicate of banks. The Five-Year Facility Agreement replaced the previous $1.25 billion senior unsecured revolving credit facility (the "Previous Facility") with a syndicate of banks, which was originally scheduled to expire in June 2021, but was terminated on April 17, 2018. The Five-Year Facility Agreement permits borrowings of up to $1.25 billion and expires in April 2023, with no borrowings outstanding as of November 3, 2018. There were no borrowings outstanding under the Previous Facility as of February 3, 2018, or October 28, 2017. The interest rate under the Five-Year Facility Agreement is variable and is determined at our option as: (i) the sum of (a) the greatest of (1) JPMorgan Chase Bank, N.A.'s prime rate, (2) the greater of the federal funds rate and the overnight bank funding rate plus, in each case, 0.5%, and (3) the one-month London Interbank Offered Rate (“LIBOR”), subject to certain adjustments plus 1%, and (b) a variable margin rate (the “ABR Margin”); or (ii) the LIBOR plus a variable margin rate (the “LIBOR Margin”). In addition, a facility fee is assessed on the commitment amount. The ABR Margin, LIBOR Margin and the facility fee are based upon our current senior unsecured debt rating. Under the Five-Year Facility Agreement, the ABR Margin ranges from 0.00% to 0.30%, the LIBOR Margin ranges from 0.80% to 1.30%, and the facility fee ranges from 0.08% to 0.20%. The Five-Year Facility Agreement is guaranteed by certain of our subsidiaries and contains customary affirmative and negative covenants. Among other things, these covenants restrict our and certain of our subsidiaries' abilities to incur liens on certain assets; make material changes in corporate structure or the nature of our business; dispose of material assets; engage in certain mergers, consolidations and other fundamental changes; or engage in certain transactions with affiliates. The Five-Year Facility Agreement also contains covenants that require us to maintain a maximum cash flow leverage ratio and a minimum interest coverage ratio. The Five-Year Facility Agreement contains default provisions including, but not limited to, failure to pay interest or principal when due and failure to comply with covenants. At November 3, 2018, we were in compliance with all such financial covenants. Long-Term Debt Long-term debt consisted of the following at November 3, 2018, February 3, 2018, and October 28, 2017 ($ in millions):
| November 3, 2018 |  | February 3, 2018 |  | October 28, 2017
2018 Notes | $ | — |  |  | $ | 500 |  |  | $ | 500 |
2021 Notes | 650 |  |  | 650 |  |  | 650 |
2028 Notes | 500 |  |  | — |  |  | — |
Interest rate swap valuation adjustments | (22 | ) |  | (5 | ) |  | — |
Subtotal | 1,128 |  |  | 1,145 |  |  | 1,150 |
Debt discounts and issuance costs | (8 | ) |  | (3 | ) |  | (3 | )
Financing lease obligations | 189 |  |  | 191 |  |  | 158 |
Capital lease obligations | 17 |  |  | 22 |  |  | 24 |
Total long-term debt | 1,326 |  |  | 1,355 |  |  | 1,329 |
Less: current portion | 46 |  |  | 544 |  |  | 545 |
Total long-term debt, less current portion | $ | 1,280 |  |  | $ | 811 |  |  | $ | 784 |
The fair value of total long-term debt, excluding debt discounts and issuance costs and financing and capital lease obligations, approximated $1,133 million, $1,199 million and $1,219 million at November 3, 2018, February 3, 2018, and October 28, 2017, respectively, based primarily on the market prices quoted from external sources, compared with carrying values of $1,128 million, $1,145 million and $1,150 million, respectively. If long-term debt was measured at fair value in the financial statements, it would be classified primarily as Level 2 in the fair value hierarchy. 2018 Notes Our $500 million principal amount of notes due August 1, 2018 (the "2018 Notes"), were repaid on August 1, 2018, using existing cash resources and were classified within Current portion of long-term debt on our Condensed Consolidated Balance Sheets as of February 3, 2018, and October 28, 2017. 2028 Notes On September 27, 2018, we issued $500 million principal amount of notes due October 1, 2028 (the “2028 Notes”). The 2028 Notes bear interest at a fixed rate of 4.45% per year, payable semi-annually on April 1 and October 1 of each year, beginning on April 1, 2019. Net proceeds from the issuance were $495 million after underwriting and issue discounts totaling $5 million. We may redeem some or all of the 2028 Notes at any time at a redemption price equal to the greater of (i) 100% of the principal amount, and (ii) the sum of the present values of each remaining scheduled payment of principal and interest discounted to the redemption date on a semiannual basis, plus accrued and unpaid interest on the principal amount to the redemption date as described in the indenture (including the supplemental indenture) relating to the 2028 Notes. Furthermore, if a change of control triggering event occurs, we will be required to offer to purchase the remaining unredeemed 2028 Notes at a price equal to 101% of their principal amount, plus accrued and unpaid interest to the purchase date. The 2028 Notes are unsecured and unsubordinated obligations and rank equally with all of our other unsecured and unsubordinated debt. The 2028 Notes contain covenants that, among other things, limit our ability to incur debt secured by liens or to enter into sale and lease-back transactions. At November 3, 2018, we were in compliance with all such financial covenants. See Note 5, Debt, in the Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended February 3, 2018, for additional information regarding the terms of our other debt facilities, debt instruments and other obligations.

X
- References No definition available. + Details
Name: | us-gaap_DebtDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
Name: | us-gaap_DebtDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration