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Long-Term Debt, Net | 12 Months Ended
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Jan. 29, 2022
Debt Disclosure [Abstract] |
Long-Term Debt, Net | 10. Long-Term Debt, Net The Company’s long-term debt consisted of the following as of January 29, 2022:
| January 29, |  |  | January 30, |
(In thousands) | 2022 |  |  | 2021 |
Convertible senior notes principal | $ | 412,025 |  |  | $ | 415,025 |
Less: unamortized discount |  | 71,023 |  |  |  | 89,735 |
Total long-term debt, net | $ | 341,002 |  |  | $ | 325,290 |
Convertible Senior Notes - Equity portion, net of tax |  | 58,454 |  |  |  | 68,330 |
Convertible notes In April 2020, the Company issued $415 million aggregate principal amount of convertible senior notes due in 2025 in a private placement to qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933. The Notes have a stated interest rate of 3.75%, payable semi-annually. The Company may redeem the Notes, in whole or in part, at any time beginning April 2023. The Company used the net proceeds from the offering for general corporate purposes. The Company does not have the right to redeem the Notes prior to April 17, 2023. On or after April 17, 2023 and prior to the fortieth scheduled trading day immediately preceding the maturity date, the Company may redeem all or any portion of the Notes, at its option, for cash, if the last reported sale price of AEO’s common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period. Beginning January 2025, noteholders may convert their Notes for approximately 117.9 shares of common stock per $1,000 principal amount of the Notes, equivalent to a conversion price of approximately $8.48 per share. The Company has the right to settle conversions in any combination of cash and shares of common stock. However, the Company intends to settle the original principal portion of the Notes in cash and any conversion value above the principal in stock. Because of this repayment policy, only the conversion spread portion of the amount owed is reflected as dilutive in earnings per share. The effective interest rate for the Notes is 10.0% and we calculated the effective yield using a market approach. The remaining amortization period of the discount was 3.25 years as of January 29, 2022. Interest expense for the Notes was:
| January 29, |  |  | January 30, |
(In thousands) | 2022 |  |  | 2021 |
Cash based interest | $ | 15,431 |  |  | $ | 11,857 |
Amortization of discount (non-cash) |  | 18,520 |  |  |  | 12,517 |
Total interest expense | $ | 33,951 |  |  | $ | 24,374 |
The following table discloses conversion amounts if the Notes were all converted as of the end of the period:
| January 29, |
(In thousands, except per share amounts) | 2022 |
Number of shares convertible |  | 48,574 |
Conversion price per share |  | 8.48 |
Value in excess of principal if converted |  | 807,470 |
Revolving credit facilities In January 2019, the Company entered into an amended and restated Credit Agreement (“Credit Agreement”) for five-year, syndicated, asset-based revolving credit facilities (the “Credit Facilities”). The Credit Agreement provides senior secured revolving credit for loans and letters of credit up to $400 million, subject to customary borrowing base limitations. All obligations under the Credit Facilities are unconditionally guaranteed by certain subsidiaries. The obligations under the Credit Agreement are secured by a first-priority security interest in certain working capital assets of the borrowers and guarantors, consisting primarily of cash, receivables, inventory and certain other assets, and will be further secured by first-priority mortgages on certain real property. As of January 29, 2022, the Company was in compliance with the terms of the Credit Agreement and had $7.9 million outstanding in stand-by letters of credit. No loans were outstanding under the Credit Agreement as of January 29, 2022.

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- Definition The entire disclosure for long-term debt. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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