Current and long-term obligations

3 Months Ended

May 03, 2024

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:

	May 3,		February 2,
(In thousands)	2024		2024
Revolving Facility	$	—	$	—
364-Day Revolving Facility		—		—
Unsecured commercial paper notes		—		—
4.250% Senior Notes due September 20, 2024 (net of discount of $145 and $230)		749,855		749,770
4.150% Senior Notes due November 1, 2025 (net of discount of $139 and $162)		499,861		499,838
3.875% Senior Notes due April 15, 2027 (net of discount of $148 and $160)		599,852		599,840
4.625% Senior Notes due November 1, 2027 (net of discount of $376 and $400)		549,624		549,600
4.125% Senior Notes due May 1, 2028 (net of discount of $224 and $237)		499,776		499,763
5.200% Senior Notes due July 5, 2028 (net of discount of $118 and $124)		499,882		499,876
3.500% Senior Notes due April 3, 2030 (net of discount of $425 and $441)		944,621		951,240
5.000% Senior Notes due November 1, 2032 (net of discount of $2,106 and $2,155)		697,894		697,845
5.450% Senior Notes due July 5, 2033 (net of discount of $1,490 and $1,521)		998,510		998,479
4.125% Senior Notes due April 3, 2050 (net of discount of $4,646 and $4,670)		495,354		495,330
5.500% Senior Notes due November 1, 2052 (net of discount of $287 and $288)		299,713		299,712
Other		196,254		200,418
Debt issuance costs, net		(39,670)		(41,527)
	$	6,991,526	$	7,000,184
Less: current portion		(769,139)		(768,645)
Long-term obligations	$	6,222,387	$	6,231,539

Revolving Facility

At May 3, 2024, the existing senior unsecured revolving credit facility (the “Revolving Facility”) had a commitment of $2.0 billion that provides for the issuance of letters of credit up to $100.0 million 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) Adjusted Term SOFR (which is Term SOFR (as published by CME Group Benchmark Administration Limited) plus a credit spread adjustment of 0.10%) or (b) a base rate (which is usually equal to the prime rate). The applicable interest rate margin for borrowings as of May 3, 2024 was 1.015% for Adjusted Term SOFR 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 May 3, 2024, 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 credit agreement governing 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 credit agreement governing the Revolving Facility also contains financial covenants which require the maintenance of a minimum fixed charge coverage ratio and a maximum leverage ratio. On February 13, 2024, the Company amended the credit agreement governing the Revolving Facility to increase the maximum leverage ratio for the four quarters of fiscal 2024. As of May 3, 2024, the Company was in compliance with all covenants pertaining to the Revolving Facility. The credit agreement governing the Revolving Facility also contains customary events of default.

As of May 3, 2024, the Company had no outstanding borrowings, no 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 $1.8 billion. In addition, as of May 3, 2024, the Company had outstanding letters of credit of $46.6 million which were issued pursuant to separate agreements.

364-Day Revolving Facility

The Company had a 364-day $750 million unsecured revolving credit facility (the “364-Day Revolving Facility”) which expired on January 30, 2024.

Commercial Paper

As of May 3, 2024, 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 May 3, 2024, the Company’s condensed consolidated balance sheet reflected no outstanding unsecured CP Notes. CP Notes totaling $195.0 million and $197.7 million at May 3, 2024 and February 2, 2024, respectively, were held by a wholly-owned subsidiary of the Company and are therefore not reflected in the condensed consolidated balance sheets.

Senior Notes

On June 7, 2023, the Company issued $500.0 million aggregate principal amount of 5.20% senior notes due 2028 (the “July 2028 Senior Notes”), net of discount of $0.1 million, and $1.0 billion aggregate principal amount of 5.45% senior notes due 2033 (the “2033 Senior Notes”), net of discount of $1.6 million. The July 2028 Senior Notes are scheduled to mature on July 5, 2028, and the 2033 Senior Notes are scheduled to mature on July 5, 2033. Interest on the July 2028 Senior Notes and the 2033 Senior Notes is payable in cash on January 5 and July 5 of each year. The Company incurred $12.4 million of debt issuance costs associated with the issuance of the July 2028 Senior Notes and the 2033 Senior Notes.