Sales of Receivables

9 Months Ended

Nov. 01, 2024

Note 10—Sales of Receivables:

The Company has a Master Accounts Receivable Purchase Agreement ("MARPA Facility") with MUFG Bank, Ltd. (the "Purchaser") for the sale of up to a maximum amount of $300 million of certain designated eligible receivables with the U.S. government.

During the three and nine months ended November 1, 2024, the Company incurred purchase discount fees of $4 million and $11 million, respectively. During the three and nine months ended November 3, 2023, the Company incurred purchase discount fees of $2 million and $7 million, respectively. The purchase discount fees are presented in "Other (income) expense, net" on the condensed consolidated statements of income and are reflected as cash flows from operating activities on the condensed consolidated statements of cash flows.

MARPA Facility activity consisted of the following:


	Nine Months Ended
	November 1, 2024		November 3, 2023
	(in millions)
Beginning balance	$	205	$	250
Sale of receivables	3,216		1,957
Cash collections	(3,121)		(1,957)
Outstanding balance sold to Purchaser(1)	300		250
Cash collected, not remitted to Purchaser(2)	(67)		(33)
Remaining sold receivables	$	233	$	217

(1) For the nine months ended November 1, 2024, the Company recorded a net increase of $95 million to cash flows from operating activities from sold receivables. For the nine months ended November 3, 2023, there was no net impact to cash flows from operating activities from sold receivables.

(2) Primarily represents the cash collected on behalf of but not yet remitted to the Purchaser as of November 1, 2024 and November 3, 2023. This balance is included in "Accounts payable" on the condensed consolidated balance sheets.