Long-term Debt and Borrowing Facilities

6 Months Ended

Aug. 02, 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 August 2, 2025, February 1, 2025 and August 3, 2024:


	August 2, 2025		February 1, 2025		August 3, 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”)	278		277		275
$444 million, 5.250% Fixed Interest Rate Notes due February 2028 (“2028 Notes”)	443		443		443
$482 million, 7.500% Fixed Interest Rate Notes due June 2029 (“2029 Notes”)	477		476		475
$844 million, 6.625% Fixed Interest Rate Notes due October 2030 (“2030 Notes”)	839		838		838
$802 million, 6.875% Fixed Interest Rate Notes due November 2035 (“2035 Notes”)	797		796		796
$575 million, 6.750% Fixed Interest Rate Notes due July 2036 (“2036 Notes”)	571		571		571
Total Senior Debt with Subsidiary Guarantee	3,405		3,401		3,711
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 Debt	3,888		3,884		4,194
Current Debt	—		—		(313)
Total Long-term Debt, Net of Current Portion	$	3,888	$	3,884	$	3,881

Cash paid for interest was $143 million and $152 million for year-to-date 2025 and 2024, respectively.

Repurchases of Notes

The Company did not repurchase any outstanding senior notes during the second quarter of and year-to-date 2025.

During the second quarter of and year-to-date 2024, the Company repurchased in the open market and extinguished $91 million and $200 million principal amounts of its outstanding senior notes, respectively. The aggregate repurchase price for these notes was $92 million and $202 million for the second quarter of and year-to-date 2024, respectively, resulting in pre-tax losses of $2 million and $3 million, including the write-off of unamortized issuance costs, during the second quarter of and year-to-date 2024, respectively. These losses are included in Other Income, Net, in the 2024 Consolidated Statements of Income.

The following table provides details of the outstanding principal amounts of senior notes repurchased and extinguished during the second quarter, year-to-date and full year of 2024:


	Second Quarter		Year-to-Date		Full Year

	(in millions)
2025 Notes	$	—	$	—	$	314
2027 Notes	14		14		14
2028 Notes	7		17		17
2029 Notes	10		17		17
2030 Notes	56		94		94
2033 Notes	—		10		10
2035 Notes	4		10		10
2036 Notes	—		38		38

Total	$	91	$	200	$	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. and Canadian dollars, has aggregate commitments of $750 million.

In May 2025, the Company entered into an amendment and restatement (“Amendment”) of the ABL Facility. The Amendment removed the interest rate credit spread adjustment of 0.10%, extended the expiration date from August 2026 to May 2030 and included certain other technical amendments.

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 August 2, 2025, the Company’s borrowing base was $683 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 $9 million of outstanding letters of credit as of August 2, 2025 that reduced its availability under the ABL Facility. As of August 2, 2025, the Company’s availability under the ABL Facility was $674 million.

As of August 2, 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% per annum. The interest rate on outstanding Canadian dollar-denominated borrowings was the Canadian Overnight Repo Rate Average plus 1.25% 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 August 2, 2025, the Company was not required to maintain this ratio.