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Debt | 12 Months Ended
--- | ---
Feb. 28, 2021
Debt Disclosure [Abstract] |
Debt Disclosure [Text Block] | DEBT
(In thousands) |  | As of February 28 or 29
Debt Description (1) | Maturity Date | 2021 |  | 2020
Revolving credit facility (2) | June 2024 | $ | — |  |  | $ | 452,740 |
Term loan (2) | June 2024 | 300,000 |  |  | 300,000 |
3.86% Senior notes | April 2023 | 100,000 |  |  | 100,000 |
4.17% Senior notes | April 2026 | 200,000 |  |  | 200,000 |
4.27% Senior notes | April 2028 | 200,000 |  |  | 200,000 |
Financing obligations | Various dates through February 2059 | 533,578 |  |  | 536,739 |
Non-recourse notes payable | Various dates through November 2027 | 13,764,808 |  |  | 13,613,272 |
Total debt |  | 15,098,386 |  |  | 15,402,751 |
Less: current portion |  | (452,579) |  |  | (433,456) |
Less: unamortized debt issuance costs |  | (25,888) |  |  | (25,240) |
Long-term debt, net |  | $ | 14,619,919 |  |  | $ | 14,944,055 |
(1) Interest is payable monthly, with the exception of our senior notes, which are payable semi-annually. (2) Borrowings accrue interest at variable rates based on LIBOR, the federal funds rate, or the prime rate, depending on the type of borrowing. Revolving Credit Facility. Borrowings under our $1.45 billion unsecured revolving credit facility (the “credit facility”) are available for working capital and general corporate purposes. We pay a commitment fee on the unused portions of the available funds. Borrowings under the credit facility are either due “on demand” or at maturity depending on the type of borrowing. Borrowings with “on demand” repayment terms are presented as short-term debt while amounts due at maturity are presented as long-term debt. As of February 28, 2021, the unused capacity of $1.45 billion was fully available to us. The weighted average interest rate on outstanding short-term and long-term debt was 1.74% in fiscal 2021, 3.23% in fiscal 2020 and 3.50% in fiscal 2019. Term Loan. Borrowings under our $300 million term loan are available for working capital and general corporate purposes. The interest rate on our term loan was 1.02% as of February 28, 2021, and the loan was classified as long-term debt as no repayments are scheduled to be made within the next 12 months. Senior Notes. Borrowings under our unsecured senior notes totaling $500 million are available for working capital and general corporate purposes. These notes were classified as long-term debt as no repayments are scheduled to be made within the next 12 months. Financing Obligations. Financing obligations relate to stores subject to sale-leaseback transactions that did not qualify for sale accounting. The financing obligations were structured at varying interest rates and generally have initial lease terms ranging from 15 to 20 years with payments made monthly. We have not entered into any new sale-leaseback transactions since fiscal 2009. In the event the agreements are modified or extended beyond their original term, the related obligation is adjusted based on the present value of the revised future payments, with a corresponding change to the assets subject to these transactions. Upon modification, the amortization of the obligation is reset, resulting in more of the payments being applied to interest expense in the initial years following the modification. Future maturities of financing obligations were as follows:
(In thousands) | As of February 28, 2021
Fiscal 2022 | $ | 53,129 |
Fiscal 2023 | 53,780 |
Fiscal 2024 | 56,075 |
Fiscal 2025 | 54,747 |
Fiscal 2026 | 57,943 |
Thereafter | 845,920 |
Total payments | 1,121,594 |
Less: interest | (588,016) |
Present value of financing obligations | $ | 533,578 |
Non-Recourse Notes Payable. The non-recourse notes payable relate to auto loans receivable funded through non-recourse funding vehicles. The timing of principal payments on the non-recourse notes payable is based on the timing of principal collections and defaults on the related auto loans receivable. The current portion of non-recourse notes payable represents principal payments that are due to be distributed in the following period. Notes payable related to our asset-backed term funding transactions accrue interest predominantly at fixed rates and have scheduled maturities through November 2027, but may mature earlier, depending upon repayment rate of the underlying auto loans receivable. Information on our funding vehicles of non-recourse notes payable as of February 28, 2021 are as follows:
(in billions) | Capacity
Warehouse facilities: |
August 2021 expiration | $ | 1.40 |
September 2021 expiration | 0.18 |
February 2022 expiration | 2.35 |
Combined warehouse facility limit | $ | 3.93 |
Unused capacity | $ | 1.61 |
Non-recourse notes payable outstanding: |
Warehouse facilities | $ | 2.31 |
Asset-backed term funding transactions | 11.45 |
Non-recourse notes payable | $ | 13.76 |
We generally enter into warehouse facility agreements for one-year terms and typically renew the agreements annually. The return requirements of warehouse facility investors could fluctuate significantly depending on market conditions. At renewal, the cost, structure and capacity of the facilities could change. These changes could have a significant impact on our funding costs. See Notes 1(F) and 4 for additional information on the related auto loans receivable. Capitalized Interest. We capitalize interest in connection with the construction of certain facilities. For fiscal 2021, fiscal 2020 and fiscal 2019, we capitalized interest of $3.3 million, $7.0 million, and $6.4 million, respectively. Financial Covenants. The credit facility, term loan and senior note agreements contain representations and warranties, conditions and covenants. We must also meet financial covenants in conjunction with certain financing obligations. The agreements governing our non-recourse funding vehicles contain representations and warranties, financial covenants and performance triggers. As of February 28, 2021, we were in compliance with all financial covenants and our non-recourse funding vehicles were in compliance with the related performance triggers.

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- 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
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