Current and long-term obligations

6 Months Ended

Jul. 29, 2022

Current and long-term obligations

Current and long-term obligations

5. Current and long-term obligations

Current and long-term obligations consist of the following:

	July 29,		January 28,
(In thousands)	2022		2022
Revolving Facility	$	—	$	—
3.250% Senior Notes due April 15, 2023 (net of discount of $184 and $319)		899,816		899,681
4.150% Senior Notes due November 1, 2025 (net of discount of $291 and $332)		499,709		499,668
3.875% Senior Notes due April 15, 2027 (net of discount of $229 and $251)		599,771		599,749
4.125% Senior Notes due May 1, 2028 (net of discount of $312 and $336)		499,688		499,664
3.500% Senior Notes due April 3, 2030 (net of discount of $535 and $564)		969,097		988,990
4.125% Senior Notes due April 3, 2050 (net of discount of $4,812 and $4,857)		495,188		495,143
Unsecured commercial paper notes		1,095,533		54,300
Other		155,257		159,525
Debt issuance costs, net		(22,724)		(24,652)
	$	5,191,335	$	4,172,068
Less: current portion		(900,635)		—
Long-term portion	$	4,290,700	$	4,172,068

The Company’s credit agreement provides for a $2.0 billion senior unsecured revolving credit facility (the “Revolving Facility”) of which up to $100.0 million is available for letters of credit and is scheduled to mature on December 2, 2026.

Borrowings under the Revolving Facility bear interest at a rate equal to an applicable interest rate margin plus, at the Company’s option, either (a) LIBOR or (b) a base rate (which is usually equal to the prime rate). The credit agreement governing the Revolving Facility includes customary LIBOR replacement provisions. The applicable interest rate margin for borrowings as of July 29, 2022 was 1.015% for LIBOR borrowings and 0.015% for base-rate borrowings. The Company is also required to pay a facility fee, payable on any used and unused commitment amounts of the Revolving Facility, and customary fees on letters of credit issued under the Revolving Facility. As of July 29, 2022, the facility fee rate was 0.11%. The applicable interest rate margins for borrowings, the facility fees and the letter of credit fees under the Revolving Facility are subject to adjustment from time to time based on the Company’s long-term senior unsecured debt ratings.

The Revolving Facility contains a number of customary affirmative and negative covenants that, among other things, restrict, subject to certain exceptions, the Company’s ability to: incur additional liens; sell all or substantially all of the Company’s assets; consummate certain fundamental changes or change in the Company’s lines of business; and incur additional subsidiary indebtedness. The Revolving Facility also contains financial covenants which require the

maintenance of a minimum fixed charge coverage ratio and a maximum leverage ratio. As of July 29, 2022, the Company was in compliance with all such covenants. The Revolving Facility also contains customary events of default.

As of July 29, 2022, the Company had no outstanding borrowings, $1.3 million of outstanding letters of credit, and approximately $2.0 billion of borrowing availability under the Revolving Facility that, due to the Company’s intention to maintain borrowing availability related to the commercial paper program described below, could contribute incremental liquidity of $0.7 billion. In addition, as of July 29, 2022, the Company had outstanding letters of credit of $45.9 million which were issued pursuant to separate agreements.

As of July 29, 2022, the Company had a commercial paper program under which the Company may issue unsecured commercial paper notes (the “CP Notes”) from time to time in an aggregate amount not to exceed $2.0 billion outstanding at any time. The CP Notes may have maturities of up to 364 days from the date of issue and rank equal in right of payment with all of the Company’s other unsecured and unsubordinated indebtedness. The Company intends to maintain available commitments under the Revolving Facility in an amount at least equal to the amount of CP Notes outstanding at any time. As of July 29, 2022, the Company’s condensed consolidated balance sheet reflected outstanding unsecured CP Notes of $1.1 billion, which had a weighted average borrowing rate of 2.23%. CP Notes totaling $192.0 million and $181.0 million at July 29, 2022 and January 28, 2022, respectively, were held by a wholly-owned subsidiary of the Company and are therefore not reflected in the condensed consolidated balance sheets.