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v3.24.1

Financing | 12 Months Ended
--- | ---
Feb. 03, 2024
Debt Disclosure [Abstract] |
Financing | Financing The Company's debt is as follows:
| February 3, 2024 |  | January 28, 2023
(millions)
Long-term debt: |  |  |
5.875% Senior notes due 2029 | $ | 500 |  |  | $ | 500 |
5.875% Senior notes due 2030 | 425 |  |  | 425 |
6.125% Senior notes due 2032 | 425 |  |  | 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 |  |  | 181 |
7.0% Senior debentures due 2028 | 105 |  |  | 105 |
6.9% Senior debentures due 2029 | 79 |  |  | 79 |
6.7% Senior exchanged debentures due 2028 | 73 |  |  | 73 |
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 |  |  | 1 |
Unamortized debt issue costs and discount | (25) |  |  | (28) |
Premium on acquired debt, using an effective interest yield of 5.76% to 6.021% | 16 |  | 17
| $ | 2,998 |  |  | $ | 2,996 |
Interest expense and losses on early retirement of debt are as follows:
| 2023 |  | 2022 |  | 2021
|  | (millions) |  |
Interest on debt | $ | 187 |  |  | $ | 185 |  |  | $ | 246 |
Amortization of debt premium | (2) |  |  | (2) |  |  | (3) |
Amortization of financing costs and debt discount | 12 |  |  | 13 |  |  | 26 |
Interest on finance leases | 1 |  |  | 1 |  |  | 1 |
| 198 |  |  | 197 |  |  | 270 |
Less interest capitalized on construction | 28 |  |  | 22 |  |  | 14 |
Interest expense | $ | 170 |  |  | $ | 175 |  |  | $ | 256 |
Losses on early retirement of debt | $ | — |  |  | $ | 31 |  |  | $ | 199 |
Debt Obligations 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. The Company borrowed and repaid $961 million and $1,959 million of debt under its revolving credit facility during 2023 and 2022, respectively. As of February 3, 2024 and January 28, 2023, there were no outstanding borrowings under the agreement. Bank Credit Agreement On March 22, 2023, the Company amended its existing credit agreement, which extended the term of the credit agreement to expire in March 2027, subject to up to two one-year extensions that could be requested by the Company and agreed to by the lenders. The agreement provides for revolving credit borrowings and letters of credit in an aggregate amount not to exceed $1 million. 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 February 3, 2024 and January 28, 2023, 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 $148 million and $65 million of other standby letters of credit outstanding as of February 3, 2024 and January 28, 2023, respectively. 2023 Debt Financing Activities Other than borrowings under the ABL Credit Facility, the Company did not engage in other material debt financing activities during fiscal 2023. 2022 Debt Financing Activities 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. Long-Term Debt Maturities Future maturities of long-term debt are shown below:
| (millions)
Fiscal year |
2025 | $ | 6 |
2026 | — |
2027 | 71 |
2028 | 207 |
2029 | 592 |
After 2029 | 2,131 |
Debt Repayments The following table shows the detail of debt repayments:
| 2023 |  | 2022 |  | 2021
|  |  | (millions) |  |
Revolving credit facility | $ | 961 |  |  | $ | 1,959 |  |  | $ | 585 |
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 |
9.5% amortizing debentures due 2021 | — |  |  | — |  |  | 2 |
9.75% amortizing debentures due 2021 | — |  |  | — |  |  | 1 |
| $ | 961 |  |  | $ | 3,098 |  |  | $ | 2,696 |

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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://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(c)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 470 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//470/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (i) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1E -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I + Details
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