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DEBT | 6 Months Ended
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Jul. 31, 2022
Debt Disclosure [Abstract] |
DEBT | DEBT Short-Term Borrowings The Company had $12.2 million of borrowings outstanding under short-term lines of credit, overdraft facilities and short-term revolving credit facilities denominated in various foreign currencies as of July 31, 2022. The weighted average interest rate on funds borrowed as of July 31, 2022 was 0.16%. These facilities provided for borrowings of up to $187.8 million based on exchange rates in effect on July 31, 2022 and are utilized primarily to fund working capital needs. The maximum amount of borrowings outstanding under these facilities during the twenty-six weeks ended July 31, 2022 was $17.3 million. 2021 Unsecured Revolving Credit Facility On April 28, 2021, the Company replaced its 364-day $275.0 million United States dollar-denominated unsecured revolving credit facility, which matured on April 7, 2021, with a 364-day $275.0 million United States dollar-denominated unsecured revolving credit facility (the “2021 facility”). The 2021 facility matured on April 27, 2022, and was not replaced. The Company paid $0.8 million of debt issuance costs in connection with the 2021 facility, which were amortized over the term of the debt agreement. The Company had no borrowings outstanding under the 2021 facility during the twenty-six weeks ended July 31, 2022. Long-Term Debt The carrying amounts of the Company’s long-term debt were as follows:
(In millions) | 7/31/22 |  | 1/30/22 |  | 8/1/21 |
Senior unsecured Term Loan A facilities due 2024 (1)(2) | $ | 457.8 |  |  | $ | 513.5 |  |  | $ | 891.2 |  |
7 3/4% debentures due 2023 | 99.9 |  |  | 99.8 |  |  | 99.8 |  |
3 5/8% senior unsecured euro notes due 2024 (2) | 532.5 |  |  | 580.8 |  |  | 619.2 |  |
4 5/8% senior unsecured notes due 2025 | 496.4 |  |  | 495.7 |  |  | 495.1 |  |
3 1/8% senior unsecured euro notes due 2027 (2) | 607.1 |  |  | 662.6 |  |  | 706.9 |  |
Total | 2,193.7 |  |  | 2,352.4 |  |  | 2,812.2 |  |
Less: Current portion of long-term debt | 38.2 |  |  | 34.8 |  |  | 29.7 |  |
Long-term debt | $ | 2,155.5 |  |  | $ | 2,317.6 |  |  | $ | 2,782.5 |  |
(1) The outstanding principal balance for the United States dollar-denominated Term Loan A facility and the euro-denominated Term Loan A facility was zero and €450.0 million, respectively, as of July 31, 2022. (2) The carrying amount of the euro-denominated Term Loan A facility and the senior unsecured euro notes includes the impact of changes in the exchange rate of the United States dollar against the euro. Please see Note 12, “Fair Value Measurements,” for the fair value of the Company’s long-term debt as of July 31, 2022, January 30, 2022 and August 1, 2021. The Company’s mandatory long-term debt repayments for the remainder of 2022 through 2027 were as follows as of July 31, 2022:
(In millions) |
Fiscal Year | Amount (1)
Remainder of 2022 | $ | 19.1 |
2023 | 138.2 |
2024 | 936.9 |
2025 | 500.0 |
2026 | — |
2027 | 611.9 |
(1) A portion of the Company’s mandatory long-term debt repayments is denominated in euros and subject to changes in the exchange rate of the United States dollar against the euro. Total debt repayments for the remainder of 2022 through 2027 exceed the total carrying amount of the Company’s debt as of July 31, 2022 because the carrying amount reflects the unamortized portions of debt issuance costs and the original issue discounts. As of July 31, 2022, approximately 80% of the Company’s long-term debt had fixed interest rates, with the remainder at variable interest rates. 2019 Senior Unsecured Credit Facilities The Company has senior unsecured credit facilities due April 29, 2024 (as amended, the “2019 facilities”) that consist of a €500.0 million euro-denominated Term Loan A facility (the “Euro TLA facility”) and senior unsecured revolving credit facilities consisting of (i) a $675.0 million United States dollar-denominated revolving credit facility, (ii) a CAD $70.0 million Canadian dollar-denominated revolving credit facility available in United States dollars or Canadian dollars, (iii) a €200.0 million euro-denominated revolving credit facility available in euro, Australian dollars and other agreed foreign currencies and (iv) a $50.0 million United States dollar-denominated revolving credit facility available in United States dollars or Hong Kong dollars. The 2019 facilities also consisted of a $1,093.2 million United States dollar-denominated Term Loan A facility (the “USD TLA facility”). The Company repaid the outstanding principal balance under its USD TLA facility in 2021. Borrowings under the 2019 facilities bear interest at variable rates calculated in the manner set forth in the terms of the 2019 facilities. The Company had loans outstanding of $457.8 million, net of debt issuance costs and based on applicable exchange rates, under the Euro TLA facility, no borrowings outstanding under the senior unsecured revolving credit facilities, and $12.0 million of outstanding letters of credit under the senior unsecured revolving credit facilities as of July 31, 2022. The Company made payments totaling $13.4 million and $707.4 million on its term loans under the 2019 facilities during the twenty-six weeks ended July 31, 2022 and August 1, 2021, respectively. The current applicable margin with respect to the Euro TLA facility and each revolving credit facility as of July 31, 2022 was 1.250% for adjusted Eurocurrency rate loans and 0.250% for base rate or Canadian prime rate loans. The applicable margin for borrowings under the Euro TLA facility and the revolving credit facilities is subject to adjustment (i) after the date of delivery of the compliance certificate and financial statements, with respect to each of the Company’s fiscal quarters, based upon the Company’s net leverage ratio or (ii) after the date of delivery of notice of a change in the Company’s public debt rating by Standard & Poor’s or Moody’s. The Company entered into interest rate swap agreements designed with the intended effect of converting notional amounts of its variable rate debt obligation to fixed rate debt. Under the terms of the agreements, for any outstanding notional amount, the Company’s exposure to fluctuations in the one-month London interbank offered rate (“LIBOR”) is eliminated and the Company pays a fixed rate plus the current applicable margin. The following interest rate swap agreements were entered into or in effect during the twenty-six weeks ended August 1, 2021 (no interest rate swap agreements were entered into or in effect during the twenty-six weeks ended July 31, 2022):
(In millions) |  |  |  |  |  |  |  |  |  |
Designation Date |  | Commencement Date |  | Initial Notional Amount |  | Notional Amount Outstanding as of July 31, 2022 |  | Fixed Rate |  | Expiration Date
March 2020 |  | February 2021 |  | $ | 50.0 |  |  | $ | — |  | (1) | 0.562% |  | February 2023
February 2020 |  | February 2021 |  | 50.0 |  |  | — |  | (1) | 1.1625% |  | February 2023
February 2020 |  | February 2020 |  | 50.0 |  |  | — |  | (1) | 1.2575% |  | February 2023
August 2019 |  | February 2020 |  | 50.0 |  |  | — |  | (1) | 1.1975% |  | February 2022
June 2019 |  | February 2020 |  | 50.0 |  |  | — |  | (1) | 1.409% |  | February 2022
June 2019 |  | June 2019 |  | 50.0 |  |  | — |  |  | 1.719% |  | July 2021
January 2019 |  | February 2020 |  | 50.0 |  |  | — |  |  | 2.4187% |  | February 2021
November 2018 |  | February 2019 |  | 139.2 |  |  | — |  |  | 2.8645% |  | February 2021
October 2018 |  | February 2019 |  | 115.7 |  |  | — |  |  | 2.9975% |  | February 2021
June 2018 |  | August 2018 |  | 50.0 |  |  | — |  |  | 2.6825% |  | February 2021
(1) The Company terminated in 2021 the interest rate swap agreements due to expire in February 2022 and February 2023 in connection with the early repayment of the outstanding principal balance under its USD TLA facility. The 2019 facilities require the Company to comply with customary affirmative, negative and financial covenants, including a minimum interest coverage ratio and a maximum net leverage ratio, calculated in the manner set forth in the terms of the 2019 facilities. Please see Note 8, “Debt,” in the Notes to Consolidated Financial Statements included in Item 8 of the Company’s Annual Report on Form 10-K for the year ended January 30, 2022 for further discussion of the 2019 facilities. 7 3/4% Debentures Due 2023 The Company has outstanding $100.0 million of debentures due November 15, 2023 that accrue interest at the rate of 7 3/4%. The debentures are not redeemable at the Company’s option prior to maturity. 3 5/8% Euro Senior Notes Due 2024 The Company has outstanding €525.0 million principal amount of 3 5/8% senior notes due July 15, 2024. The Company may redeem some or all of these notes at any time prior to April 15, 2024 by paying a “make whole” premium plus any accrued and unpaid interest. In addition, the Company may redeem some or all of these notes on or after April 15, 2024 at their principal amount plus any accrued and unpaid interest. 4 5/8% Senior Notes Due 2025 The Company has outstanding $500.0 million principal amount of 4 5/8% senior notes due July 10, 2025. The Company may redeem some or all of these notes at any time prior to June 10, 2025 by paying a “make whole” premium plus any accrued and unpaid interest. In addition, the Company may redeem some or all of these notes on or after June 10, 2025 at their principal amount plus any accrued and unpaid interest. 3 1/8% Euro Senior Notes Due 2027 The Company has outstanding €600.0 million principal amount of 3 1/8% senior notes due December 15, 2027. The Company may redeem some or all of these notes at any time prior to September 15, 2027 by paying a “make whole” premium plus any accrued and unpaid interest. In addition, the Company may redeem some or all of these notes on or after September 15, 2027 at their principal amount plus any accrued and unpaid interest. The Company’s financing arrangements contain financial and non-financial covenants and customary events of default. As of July 31, 2022, the Company was in compliance with all applicable financial and non-financial covenants under its financing arrangements. The Company also has standby letters of credit outside of its 2019 facilities primarily to collateralize the Company’s insurance and lease obligations. The Company had $58.8 million of these standby letters of credit outstanding as of July 31, 2022. Please see Note 8, “Debt,” in the Notes to Consolidated Financial Statements included in Item 8 of the Company’s Annual Report on Form 10-K for the year ended January 30, 2022 for further discussion of the Company’s debt.

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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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