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Long-term Debt | 6 Months Ended
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Aug. 04, 2018
Long-term Debt, by Current and Noncurrent [Abstract] |
Long-term Debt | Long-term Debt and Borrowing Facilities The following table provides the Company’s outstanding debt balance, net of unamortized debt issuance costs and discounts, as of August 4, 2018, February 3, 2018 and July 29, 2017:
| August 4, 2018 |  | February 3, 2018 |  | July 29, 2017
| (in millions)
Senior Debt with Subsidiary Guarantee |  |  |  |  |
$1 billion, 6.875% Fixed Interest Rate Notes due November 2035 (“2035 Notes”) | $ | 990 |  |  | $ | 990 |  |  | $ | 990 |
$1 billion, 5.625% Fixed Interest Rate Notes due February 2022 (“2022 Notes”) | 951 |  |  | 994 |  |  | 993 |
$1 billion, 6.625% Fixed Interest Rate Notes due April 2021 (“2021 Notes”) | 776 |  |  | 994 |  |  | 993 |
$700 million, 6.75% Fixed Interest Rate Notes due July 2036 (“2036 Notes”) | 693 |  |  | 693 |  |  | 692 |
$500 million, 5.625% Fixed Interest Rate Notes due October 2023 (“2023 Notes”) | 498 |  |  | 497 |  |  | 497 |
$500 million, 5.25% Fixed Interest Rate Notes due February 2028 (“2028 Notes”) | 495 |  |  | 495 |  |  | — |
$500 million, 8.50% Fixed Interest Rate Notes due June 2019 (“2019 Notes”)(a) | — |  |  | — |  |  | 497 |
$400 million, 7.00% Fixed Interest Rate Notes due May 2020 (“2020 Notes”) | 337 |  |  | 398 |  |  | 397 |
$297 million, 6.694% Fixed Interest Rate Notes due January 2027 (“2027 Notes”) | 272 |  |  | — |  |  | — |
Secured Foreign Facilities | 80 |  |  | 1 |  |  | — |
Total Senior Debt with Subsidiary Guarantee | $ | 5,092 |  |  | $ | 5,062 |  |  | $ | 5,059 |
Senior Debt |  |  |  |  |
$350 million, 6.95% Fixed Interest Rate Debentures due March 2033 (“2033 Notes”) | $ | 348 |  |  | $ | 348 |  |  | $ | 348 |
$300 million, 7.60% Fixed Interest Rate Notes due July 2037 (“2037 Notes”) | 297 |  |  | 297 |  |  | 297 |
Unsecured Foreign Facilities | 40 |  |  | 87 |  |  | 64 |
Total Senior Debt | $ | 685 |  |  | $ | 732 |  |  | $ | 709 |
Total | $ | 5,777 |  |  | $ | 5,794 |  |  | $ | 5,768 |
Current Debt | (65 | ) |  | (87 | ) |  | (64 | )
Total Long-term Debt, Net of Current Portion | $ | 5,712 |  |  | $ | 5,707 |  |  | $ | 5,704 |
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(a) | The balance includes a fair value interest rate hedge adjustment which increased the debt balance by $2 million as of July 29, 2017.
Exchange of Notes In June 2018, the Company completed private offers to exchange $62 million, $220 million and $44 million of outstanding 2020 Notes, 2021 Notes and 2022 Notes, respectively, for $297 million of newly issued 6.694% notes due in January 2027 and $52 million in cash consideration, which included a $24 million exchange premium. The exchange was treated as a modification under ASC 470, Debt, and no gain or loss was recognized. The exchange premium will be amortized through the maturity date of January 2027 and is included within Long-term Debt on the August 4, 2018 Consolidated Balance Sheet. The obligation to pay principal and interest on the 2027 Notes is jointly and severally guaranteed on a full and unconditional basis by certain of the Company's 100% owned subsidiaries (the “Guarantors”). Issuance of Notes In January 2018, the Company issued $500 million of 5.25% notes due in February 2028. The obligation to pay principal and interest on these notes is jointly and severally guaranteed on a full and unconditional basis by the Guarantors. The proceeds from the issuance were $495 million, which were net of issuance costs of $5 million. These issuance costs are being amortized through the maturity date of February 2028 and are included within Long-term Debt on the August 4, 2018 and February 3, 2018 Consolidated Balance Sheets. Redemption of Notes In January 2018, the Company used the proceeds from the 2028 Notes to redeem the $500 million 2019 Notes for $540 million. In the fourth quarter of 2017, the Company recognized a pre-tax loss on extinguishment of this debt of $45 million (after-tax loss of $29 million), which includes write-offs of unamortized issuance costs and discounts and losses related to terminated interest rate swaps associated with the 2019 Notes. Secured Revolving Facility The Company and the Guarantors guarantee and pledge collateral to secure a revolving credit facility ("Revolving Facility"). The Revolving Facility has aggregate availability of $1 billion and expires in May 2022. The Revolving Facility allows the Company and certain of the Company's non-U.S. subsidiaries to borrow and obtain letters of credit in U.S. dollars, Canadian dollars, Euros, Hong Kong dollars or British pounds. The Revolving Facility fees related to committed and unutilized amounts are 0.25% per annum, and the fees related to outstanding letters of credit are 1.50% per annum. In addition, the interest rate on outstanding U.S. dollar borrowings is the London Interbank Offered Rate (“LIBOR”) plus 1.50% per annum. The interest rate on outstanding foreign denominated borrowings is the applicable benchmark rate plus 1.50% per annum. The Revolving Facility contains fixed charge coverage and debt to EBITDA financial covenants. The Company is required to maintain a fixed charge coverage ratio of not less than 1.75 to 1.00 and a consolidated debt to consolidated EBITDA ratio not exceeding 4.00 to 1.00 for the most recent four-quarter period. In addition, the Revolving Facility provides that investments and restricted payments may be made, without limitation on amount, if (a) at the time of and after giving effect to such investment or restricted payment, the ratio of consolidated debt to consolidated EBITDA for the most recent four-quarter period is less than 3.00 to 1.00 and (b) no default or event of default exists. As of August 4, 2018, the Company was in compliance with both of its financial covenants, and the ratio of consolidated debt to consolidated EBITDA was less than 3.00 to 1.00. As of August 4, 2018, there were no borrowings outstanding under the Revolving Facility. The Revolving Facility supports the Company’s letter of credit program. The Company had $9 million of outstanding letters of credit as of August 4, 2018 that reduced its remaining availability under the Revolving Facility. Secured Foreign Facilities The Company and the Guarantors guarantee and pledge collateral to secure revolving and term loan bank facilities ("Secured Foreign Facilities") used by certain of the Company's Greater China subsidiaries to support their operations. The Secured Foreign Facilities, which allow borrowings in U.S. dollars and Chinese yuan, have availability totaling $100 million. The interest rates on outstanding borrowings are based upon the applicable benchmark rate for the currency of each borrowing. For year-to-date 2018, the Company borrowed $79 million under the Secured Foreign Facilities. Borrowings on the Secured Foreign Facilities mature between August 2018 and May 2022. As of August 4, 2018, borrowings of $25 million are included within Current Debt on the Consolidated Balance Sheet and the remaining borrowings are included within Long-term Debt. Unsecured Foreign Facilities The Company guarantees unsecured revolving and term loan bank facilities ("Unsecured Foreign Facilities") used by certain of the Company's Greater China subsidiaries to support their operations. The Unsecured Foreign Facilities, which allow borrowings in U.S. dollars and Chinese yuan, have availability totaling $100 million. The interest rates on outstanding borrowings are based upon the applicable benchmark rate for the currency of each borrowing. For year-to-date 2018, the Company borrowed $10 million and made payments of $57 million under the Unsecured Foreign Facilities. The maximum daily amount outstanding at any point in time in 2018 was $90 million. Borrowings on the Unsecured Foreign Facilities mature between August 2018 and December 2018. As of August 4, 2018, borrowings of $40 million are included within Current Debt on the Consolidated Balance Sheet.

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