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v3.23.1

Financing | 12 Months Ended
--- | ---
Jan. 28, 2023
Debt Disclosure [Abstract] |
Financing | Financing The Company’s debt is as follows:
| January 28, 2023 |  | January 29, 2022
(millions)
Long-term debt: |  |  |
5.875% Senior notes due 2029 | $ | 500 |  |  | $ | 500 |
5.875% Senior notes due 2030 | 425 |  |  | — |
6.125% Senior notes due 2032 | 425 |  |  | — |
4.5% Senior notes due 2034 | 367 |  |  | 367 |
5.125% Senior notes due 2042 | 250 |  |  | 250 |
4.3% Senior notes due 2043 | 250 |  |  | 250 |
6.375% Senior notes due 2037 | 192 |  |  | 192 |
6.7% Senior exchanged debentures due 2034 | 181 |  |  | 183 |
7.0% Senior debentures due 2028 | 105 |  |  | 105 |
6.9% Senior debentures due 2029 | 79 |  |  | 79 |
6.7% Senior exchanged debentures due 2028 | 73 |  |  | 74 |
6.79% Senior debentures due 2027 | 71 |  |  | 71 |
6.7% Senior debentures due 2028 | 29 |  |  | 29 |
6.7% Senior debentures due 2034 | 18 |  |  | 18 |
8.75% Senior exchanged debentures due 2029 | 13 |  |  | 13 |
6.9% Senior debentures due 2032 | 12 |  |  | 12 |
7.6% Senior debentures due 2025 | 6 |  |  | 6 |
7.875% Senior exchanged debentures due 2030 | 5 |  |  | 5 |
7.875% Senior debentures due 2030 | 5 |  |  | 5 |
6.9% Senior exchanged debentures due 2032 | 1 |  |  | 5 |
2.875% Senior notes due 2023 | — |  |  | 504
3.625% Senior notes due 2024 | — |  |  | 350
4.375% Senior notes due 2023 | — |  |  | 161
6.65% Senior exchanged debentures due 2024 | — |  |  | 81
6.65% Senior debentures due 2024 | — |  |  | 36
Unamortized debt issue costs and discount | (28) |  |  | (22) |
Premium on acquired debt, using an effective interest yield of 5.76% to 6.021% | 17 |  | 21
| $ | 2,996 |  |  | $ | 3,295 |
Interest expense and losses on early retirement of debt are as follows:
| 2022 |  | 2021 |  | 2020
|  | (millions) |  |
Interest on debt | $ | 185 |  |  | $ | 246 |  |  | $ | 273 |
Amortization of debt premium | (2) |  |  | (3) |  |  | (4) |
Amortization of financing costs and debt discount | 13 |  |  | 26 |  |  | 23 |
Interest on finance leases | 1 |  |  | 1 |  |  | 1 |
| 197 |  |  | 270 |  |  | 293 |
Less interest capitalized on construction | 22 |  |  | 14 |  |  | 9 |
Interest expense | $ | 175 |  |  | $ | 256 |  |  | $ | 284 |
Losses on early retirement of debt | $ | 31 |  |  | $ | 199 |  |  | $ | — |
2022 Financing Activities ABL Credit Facility On March 3, 2022, the Company entered into a third amendment to the ABL Credit Facility which provides for a new Revolving Credit Facility of $3.0 billion (the New ABL Credit Facility). Amounts borrowed under the New ABL Credit Facility are subject to interest at a rate per annum equal to, at the ABL Borrower’s option, either (i) adjusted SOFR (calculated to include a 0.10% credit adjustment spread) plus a margin of 1.25% to 1.50% or (ii) a base rate plus a margin of 0.25% to 0.50%, in each case depending on revolving line utilization. The New ABL Credit Facility matures in March 2027. As of January 28, 2023 and January 29, 2022, there were no borrowings under the agreement and there were $65 million and $116 million, respectively, of other standby letters of credit outstanding. Senior Secured and Unsecured Notes On March 8, 2022, the Company completed a tender offer in which $8 million of certain senior secured notes were tendered for early settlement and the collateral that secured the remaining $352 million of the Company’s senior secured notes was automatically released. On March 10, 2022, the Company issued $425 million of 5.875% senior notes due 2030 (the 2030 Notes) and $425 million of 6.125% senior notes due 2032 (the 2032 Notes) in a private offering. Proceeds from the issuance, together with cash on hand, were used to redeem $1.1 billion of certain of its outstanding senior notes and pay fees and expenses in connection with the offering. The Company recognized $31 million of losses related to the early retirement of debt on the Consolidated Statement of Income. Each of the 2030 Notes and 2032 Notes are senior unsecured obligations of MRH and are unconditionally guaranteed on an unsecured basis by Macy’s, Inc. 2021 Financing Activities Senior Secured and Unsecured Notes On March 17, 2021, the Company completed a tender offer in which $500 million of senior notes and debentures were tendered for early settlement and purchased by MRH. The total cash cost for the tender offer was $17 million with the remainder funded through the net proceeds from the Notes Offering discussed below. The Company recognized $11 million of losses on early retirement of debt on the Consolidated Statement of Income during 2021. On March 17, 2021, the Company issued $500 million of 5.875% senior notes due 2029 in a private offering, which are senior unsecured obligations of MRH and are unconditionally guaranteed on a senior unsecured basis by Macy’s, Inc. MRH used the net proceeds from the Notes Offering, together with cash on hand, to fund the tender offer discussed above. On August 17, 2021, the Company redeemed the entire outstanding $1.3 billion amount of its 8.375% senior secured notes due 2025. The redemption price was equal to 100% of the outstanding principal amount of the notes ($1.3 billion), plus accrued and unpaid interest of $19 million, plus the applicable premium due to holders in connection with the early redemption of $138 million, plus unamortized deferred debt costs of $47 million. The Company recognized the redemption premium and unamortized deferred debt costs of $185 million as losses on early retirement of debt on the Consolidated Statement of Income during 2021. On October 15, 2021, the Company redeemed the entire outstanding $294 million amount of its 3.875% senior notes due 2022. The redemption price was equal to 100% of the outstanding principal amount of $294 million, plus accrued and unpaid interest of $3 million. Other Debt Obligations Bank Credit Agreement On June 8, 2020, the Company amended its existing credit agreement, which reduced the credit commitments of its existing $1,500 million unsecured credit agreement. The new agreement provided for revolving credit borrowings and letters of credit in an aggregate amount not to exceed $1 million. The new credit agreement is scheduled to expire on May 9, 2024, subject to up to two one-year extensions that could be requested by the Company and agreed to by the lenders. The unsecured revolving credit facility contains covenants that provide for, among other things, limitations on fundamental changes, use of proceeds, and maintenance of property, as well as customary representations and warranties and events of default. As of January 28, 2023 and January 29, 2022, there were no revolving credit loans outstanding under the credit agreement. Senior Notes and Debentures The senior notes and the senior debentures are unsecured obligations of a 100%-owned subsidiary of Macy’s, Inc. and Macy's Inc. has fully and unconditionally guaranteed these obligations. Other Financing Arrangements There were $65 million and $116 million, respectively, of other standby letters of credit outstanding at January 28, 2023 and January 29, 2022. Long-Term Debt Maturities Future maturities of long-term debt are shown below:
| (millions)
Fiscal year |
2024 | $ | — |
2025 | 6 |
2026 | — |
2027 | 71 |
2028 | 207 |
After 2028 | 2,723 |
Debt Repayments The following table shows the detail of debt repayments:
| 2022 |  | 2021 |  | 2020
|  |  | (millions) |  |
Revolving credit facility | $ | 1,959 |  |  | $ | 585 |  |  | $ | 1,500 |
2.875% Senior notes due 2023 | 504 |  |  | 136 |  |  | — |
3.625% Senior notes due 2024 | 350 |  |  | 150 |  |  | — |
4.375% Senior notes due 2023 | 161 |  |  | 49 |  |  | — |
6.65% Senior debentures due 2024 | 81 |  |  | 5 |  |  | — |
6.65% Debentures due 2024 | 36 |  |  | — |  |  | — |
6.9% Senior debentures due 2032 | 4 |  |  | — |  |  | — |
6.7% Senior debentures due 2034 | 2 |  |  | — |  |  | — |
6.7% Senior debentures due 2028 | 1 |  |  | — |  |  | — |
8.375% Senior secured notes due 2025 | — |  |  | 1,300 |  |  | — |
3.875% Senior notes due 2022 | — |  |  | 450 |  |  | — |
7.6% Senior debentures due 2025 | — |  |  | 18 |  |  | — |
3.45% Senior notes due 2021 | — |  |  | — |  |  | 500 |
10.25% Senior debentures due 2021 | — |  |  | — |  |  | 33 |
9.5% amortizing debentures due 2021 | — |  |  | 2 |  |  | 4 |
9.75% amortizing debentures due 2021 | — |  |  | 1 |  |  | 2 |
| $ | 3,098 |  |  | $ | 2,696 |  |  | $ | 2,039 |

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI https://asc.fasb.org/topic&trid=2208564 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (h) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(c)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (g) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1E -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (i) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 + Details
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