Long-term Debt and Borrowing Facilities

3 Months Ended

May 03, 2025

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

Long-term Debt and Borrowing Facility

The following table provides the Company’s outstanding Long-term Debt balances, net of unamortized debt issuance costs and discounts, as of May 3, 2025, February 1, 2025 and May 4, 2024:


	May 3, 2025		February 1, 2025		May 4, 2024
	(in millions)
Senior Debt with Subsidiary Guarantee
$500 million, 9.375% Fixed Interest Rate Notes due July 2025 (“2025 Notes”)	$	—	$	—	$	313
$284 million, 6.694% Fixed Interest Rate Notes due January 2027 (“2027 Notes”)	277		277		287
$444 million, 5.250% Fixed Interest Rate Notes due February 2028 (“2028 Notes”)	443		443		450
$482 million, 7.500% Fixed Interest Rate Notes due June 2029 (“2029 Notes”)	476		476		485
$844 million, 6.625% Fixed Interest Rate Notes due October 2030 (“2030 Notes”)	839		838		893
$802 million, 6.875% Fixed Interest Rate Notes due November 2035 (“2035 Notes”)	797		796		800
$575 million, 6.750% Fixed Interest Rate Notes due July 2036 (“2036 Notes”)	571		571		571
Total Senior Debt with Subsidiary Guarantee	3,403		3,401		3,799
Senior Debt
$284 million, 6.950% Fixed Interest Rate Debentures due March 2033 (“2033 Notes”)	283		283		283
$201 million, 7.600% Fixed Interest Rate Notes due July 2037 (“2037 Notes”)	200		200		200
Total Senior Debt	483		483		483
Total Long-term Debt	$	3,886	$	3,884	$	4,282

Repurchases of Notes

The Company did not repurchase any outstanding senior notes during the first quarter of 2025.

During the first quarter of 2024, the Company repurchased in the open market and extinguished $109 million principal amount of its outstanding senior notes. The aggregate repurchase price for these notes was $110 million, resulting in a pre-tax loss of $1 million, including the write-off of unamortized issuance costs. This loss is included in Other Income, Net in the first quarter of 2024 Consolidated Statement of Income.

The following table provides details of the outstanding principal amounts of senior notes repurchased and extinguished during the first quarter of and the full year 2024:


	First Quarter		Full Year

	(in millions)
2025 Notes	$	—	$	314
2027 Notes	—		14
2028 Notes	10		17
2029 Notes	7		17
2030 Notes	38		94
2033 Notes	10		10
2035 Notes	6		10
2036 Notes	38		38

Total	$	109	$	514

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, as of May 3, 2025, had 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 May 3, 2025, the Company’s borrowing base was $639 million, and it had no borrowings outstanding under the ABL Facility.

The ABL Facility supports the Company’s letter of credit program. The Company had $11 million of outstanding letters of credit as of May 3, 2025 that reduced its availability under the ABL Facility. As of May 3, 2025, the Company’s availability under the ABL Facility was $628 million.

As of May 3, 2025, 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 May 3, 2025, the Company was not required to maintain this ratio.

Subsequent to May 3, 2025, the Company entered into an amendment and restatement of the ABL Facility, which removed the interest rate credit spread adjustment of 0.10%, extended the expiration date from August 2026 to May 2030 and included other technical amendments.