Long-term Debt and Borrowing Facilities

9 Months Ended

Nov. 02, 2024

Long-Term Debt, by Current and Noncurrent [Abstract]

Long-term Debt and Borrowing Facility

The following table provides the Company’s outstanding debt balances, net of unamortized debt issuance costs and discounts, as of November 2, 2024, February 3, 2024 and October 28, 2023:


	November 2, 2024		February 3, 2024		October 28, 2023
	(in millions)
Senior Debt with Subsidiary Guarantee
$314 million, 9.375% Fixed Interest Rate Notes due July 2025 (“2025 Notes”)	$	314	$	313	$	312
$284 million, 6.694% Fixed Interest Rate Notes due January 2027 (“2027 Notes”)	276		287		286
$444 million, 5.250% Fixed Interest Rate Notes due February 2028 (“2028 Notes”)	443		460		483
$482 million, 7.500% Fixed Interest Rate Notes due June 2029 (“2029 Notes”)	476		492		492
$844 million, 6.625% Fixed Interest Rate Notes due October 2030 (“2030 Notes”)	838		930		950
$802 million, 6.875% Fixed Interest Rate Notes due November 2035 (“2035 Notes”)	796		806		855
$575 million, 6.750% Fixed Interest Rate Notes due July 2036 (“2036 Notes”)	571		608		609
Total Senior Debt with Subsidiary Guarantee	3,714		3,896		3,987
Senior Debt
$284 million, 6.950% Fixed Interest Rate Debentures due March 2033 (“2033 Notes”)	283		293		310
$201 million, 7.600% Fixed Interest Rate Notes due July 2037 (“2037 Notes”)	200		199		200
Total Senior Debt	483		492		510
Total Debt	4,197		4,388		4,497
Current Debt	(314)		—		—
Total Long-term Debt, Net of Current Portion	$	3,883	$	4,388	$	4,497

Repurchases of Notes

The Company did not repurchase any outstanding senior notes in the third quarter of 2024. For year-to-date 2024, the Company repurchased in the open market and extinguished $200 million principal amounts of its outstanding senior notes. The aggregate repurchase price for these notes was $202 million, resulting in a pre-tax loss of $3 million, including the write-off of unamortized issuance costs. This loss is included in Other Income in the year-to-date 2024 Consolidated Statement of Income.

During the third quarter of and year-to-date 2023, the Company repurchased in the open market and extinguished $174 million and $373 million principal amounts of its outstanding senior notes, respectively. The aggregate repurchase price for these notes were $161 million and $343 million for the third quarter of and year-to-date 2023, respectively, resulting in pre-tax gains of $12 million and $28 million, including the write-off of unamortized issuance costs, during the third quarter of and year-to-date 2023, respectively. These gains are included in Other Income in the 2023 Consolidated Statements of Income.

The following table provides details of the outstanding principal amounts of senior notes repurchased and extinguished during 2024 and 2023:


	Third Quarter				Year-to-Date
	2024		2023		2024		2023
	(in millions)
2025 Notes	$	—	$	—	$	—	$	6
2027 Notes	—		—		14		—
2028 Notes	—		14		17		14
2029 Notes	—		—		17		—
2030 Notes	—		35		94		42
2033 Notes	—		31		10		39
2035 Notes	—		78		10		139
2036 Notes	—		3		38		86
2037 Notes	—		13		—		47
Total	$	—	$	174	$	200	$	373

Asset-backed Revolving Credit Facility

The Company and certain of the Company’s 100% owned subsidiaries guarantee and pledge collateral to secure an asset-backed revolving credit facility (“ABL Facility”). The ABL Facility, which allows borrowings and letters of credit in U.S. dollars, has aggregate commitments of $750 million and an expiration date in August 2026.

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 borrowing base and (ii) the aggregate commitment, the Company is required to repay the outstanding amounts under the ABL Facility to the extent of such excess. As of November 2, 2024, the Company’s borrowing base was $1.123 billion, and it had no borrowings outstanding under the ABL Facility.

The ABL Facility supports the Company’s letter of credit program. The Company had $10 million of outstanding letters of credit as of November 2, 2024 that reduced its availability under the ABL Facility. As of November 2, 2024, the Company’s availability under the ABL Facility was $740 million.

As of November 2, 2024, 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 1.25% per annum. In addition, the interest rate on outstanding U.S. dollar borrowings was the Term Secured Overnight Financing Rate plus 1.25% and a credit spread adjustment of 0.10% 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 (i) $70 million or (ii) 10% of the maximum borrowing amount. As of November 2, 2024, the Company was not required to maintain this ratio.