XML 65 R17.htm IDEA: XBRL DOCUMENT
v3.20.1

Long-term Debt and Borrowing Facilities | 3 Months Ended
--- | ---
May 02, 2020
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 May 2, 2020, February 1, 2020 and May 4, 2019:
| May 2, 2020 |  | February 1, 2020 |  | May 4, 2019
| (in millions)
Senior Debt with Subsidiary Guarantee |  |  |  |  |
$1 billion, 6.875% Fixed Interest Rate Notes due November 2035 (“2035 Notes”) | $ | 991 |  |  | $ | 991 |  |  | $ | 990 |
$860 million, 5.625% Fixed Interest Rate Notes due February 2022 (“2022 Notes”) | 858 |  |  | 858 |  |  | 952 |
$700 million, 6.75% Fixed Interest Rate Notes due July 2036 (“2036 Notes”) | 693 |  |  | 693 |  |  | 693 |
$500 million, 5.625% Fixed Interest Rate Notes due October 2023 (“2023 Notes”) | 498 |  |  | 498 |  |  | 498 |
$500 million, 5.25% Fixed Interest Rate Notes due February 2028 (“2028 Notes”) | 496 |  |  | 496 |  |  | 496 |
$500 million, 7.50% Fixed Interest Rate Notes due June 2029 ("2029 Notes") | 487 |  |  | 487 |  |  | — |
$450 million, 6.625% Fixed Interest Rate Notes due April 2021 (“2021 Notes”) | 450 |  |  | 450 |  |  | 777 |
$297 million, 6.694% Fixed Interest Rate Notes due January 2027 (“2027 Notes”) | 276 |  |  | 276 |  |  | 274 |
$338 million, 7.00% Fixed Interest Rate Notes due May 2020 (“2020 Notes”) | — |  |  | — |  |  | 338 |
Secured Foreign Facilities | 107 |  |  | 103 |  |  | 91 |
Total Senior Debt with Subsidiary Guarantee | $ | 4,856 |  |  | $ | 4,852 |  |  | $ | 5,109 |
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”) | 298 |  |  | 298 |  |  | 297 |
Unsecured Foreign Facilities | — |  |  | 50 |  |  | 67 |
Total Senior Debt | $ | 646 |  |  | $ | 696 |  |  | $ | 712 |
Total | $ | 5,502 |  |  | $ | 5,548 |  |  | $ | 5,821 |
Current Debt | (468 | ) |  | (61 | ) |  | (72 | )
Total Long-term Debt, Net of Current Portion | $ | 5,034 |  |  | $ | 5,487 |  |  | $ | 5,749 |
Issuance of Notes In June 2019, the Company issued $500 million of 7.50% notes due in June 2029. The obligation to pay principal and interest on these notes is jointly and severally guaranteed on a full and unconditional basis by certain of the Company's 100% owned subsidiaries (the “Guarantors”). The proceeds from the issuance were $486 million, which were net of discounts and issuance costs of $14 million. The discounts and issuance costs are being amortized through the maturity date and are included within Long-term Debt on the May 2, 2020 and February 1, 2020 Consolidated Balance Sheets. Repurchases of Notes In June 2019, the Company completed the early settlement of tender offers to repurchase $212 million of outstanding 2020 Notes, $330 million of outstanding 2021 Notes and $96 million of outstanding 2022 Notes for $669 million. The Company used the proceeds from the 2029 Notes, together with cash on hand, to fund the purchase price for the tender offers. Additionally, in July 2019, the Company redeemed the remaining $126 million of outstanding 2020 Notes for $130 million. In the second quarter of 2019, the Company recognized a pre-tax loss on extinguishment of debt of $40 million (after-tax loss of $30 million), which includes redemption fees and the write-offs of unamortized issuance costs. Revolving Credit Facility The Company, the Guarantors and certain of the Company's 100% owned Canadian subsidiaries guarantee and pledge collateral to secure a revolving credit facility ("Credit Agreement"). In April 2020, the Company entered into an amendment and restatement (“Amendment”) of the Credit Agreement to convert the Company’s credit facility into an asset-backed revolving credit facility (“ABL Facility”). The Amendment maintains the aggregate commitments at $1 billion, and maintains the expiration date in August of 2024. The ABL Facility allows borrowings and letters of credit in U.S. dollars or Canadian dollars. Availability under the ABL Facility is the lesser of (i) the borrowing base, determined primarily based on the Company's eligible U.S. and Canadian credit card receivables, accounts receivable, inventory and eligible real property, or (ii) the aggregate commitment. If at any time, the outstanding amount under the ABL Facility exceeds the lesser of (i) the aggregate commitment and (ii) the borrowing base, the Company will be required to prepay the outstanding amounts under the ABL Facility to the extent of such excess. In addition, at any time that our consolidated cash balance exceeds $350 million, the Company will be required to prepay outstanding amounts under the ABL Facility to the extent of such excess. As of May 2, 2020, the Company was unable to draw upon the ABL Facility as its consolidated cash balance exceeded $350 million. As of May 2, 2020, the ABL Facility fees related to committed and unutilized amounts were 0.30% per annum, and the fees related to outstanding letters of credit were 1.75% per annum. In addition, the interest rate on outstanding U.S. dollar borrowings was the London Interbank Offered Rate plus 1.75% per annum. The interest rate on outstanding Canadian dollar-denominated borrowings was the Canadian Dollar Offered Rate plus 1.75% per annum. The ABL Facility requires the Company to maintain a fixed charge coverage ratio of not less than 1.00 to 1.00 during an event of default or any period commencing on any day when specified excess availability is less than the greater of (1) $100 million or (2) 15% of the maximum borrowing amount. As of May 2, 2020, the Company was not required to maintain this ratio. In March 2020, in an abundance of caution and as a proactive measure in response to the COVID-19 pandemic, the Company elected to borrow $950 million from its revolving facility, which was prepaid upon the completion of the Amendment. As of May 2, 2020, there were no borrowings outstanding under the ABL Facility. The ABL Facility supports the Company’s letter of credit program. The Company had $28 million of outstanding letters of credit as of May 2, 2020 that reduced its availability under the ABL Facility. Foreign Facilities Certain of the Company's Greater China subsidiaries utilize revolving and term loan bank facilities to support their operations ("Foreign Facilities"). The Foreign Facilities allow borrowings in U.S. dollars and Chinese Yuan, and interest rates on outstanding borrowings are based upon the applicable benchmark rate for the currency of each borrowing. Certain of these facilities are guaranteed by the Company, the Guarantors and certain of the Company's 100% owned Canadian subsidiaries ("Secured Foreign Facilities"), and certain of these facilities are guaranteed by the Company only ("Unsecured Foreign Facilities"). The Secured Foreign Facilities have availability totaling $150 million. During the first quarter of 2020, the Company borrowed $10 million and made payments of $6 million under the Secured Foreign Facilities. As of May 2, 2020, there were borrowings of $107 million outstanding under the Secured Foreign Facilities, of which $18 million is included within Current Debt on the Consolidated Balance Sheet. Borrowings on the Secured Foreign Facility mature between June 2020 and August 2024. During the first quarter of 2020, the Company agreed to cash collateralize the Secured Foreign Facilities but had not yet put the collateral in place as of May 2, 2020. The Secured Foreign Facilities will be required to be collateralized for the total lender commitments, net of certain paydowns, and, as such, reduces over time. The Unsecured Foreign Facilities have availability totaling $75 million. During the first quarter of 2020, the Company borrowed $13 million and made payments of $63 million under the Unsecured Foreign Facilities

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

X
- Definition The entire disclosure for long-term debt. + 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_LongTermDebtTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration