Long-Term Debt

12 Months Ended

Jan. 31, 2020



Debt Category (In millions)	Weighted-Average Interest Rate at January 31, 2020		January 31, 2020			February 1, 2019
Secured debt:
Mortgage notes due through fiscal 2027 ¹	5.23	%	$	5		$	6
Unsecured debt:
Notes due through fiscal 2024	3.70	%	3,232			4,278
Notes due fiscal 2025-2029	3.57	%	5,749			4,256
Notes due fiscal 2035-2039	5.96	%	897			897
Notes due fiscal 2040-2044	4.82	%	1,757			1,757
Notes due fiscal 2045-2049	3.89	%	5,013			3,533
Finance or capitalized lease obligations due through fiscal 2037			712			774
Total long-term debt			17,365			15,501
Less current maturities			(597		)	(1,110		)
Long-term debt, excluding current maturities			$	16,768		$	14,391


¹	Real properties with an aggregate book value of $16 million were pledged as collateral at January 31, 2020, for secured debt.

Debt maturities, exclusive of unamortized original issue discounts, unamortized debt issuance costs, and capitalized lease obligations, for the next five years and thereafter are as follows: 2020, $500 million; 2021, $1.0 billion; 2022, $765 million; 2023, $500 million; 2024, $450 million; thereafter, $13.6 billion.

The Company’s unsecured notes are issued under indentures that generally have similar terms and, therefore, have been grouped by maturity date for presentation purposes in the table above. The notes contain certain restrictive covenants, none of which are expected to impact the Company’s capital resources or liquidity. The Company was in compliance with all covenants of these agreements at January 31, 2020.

During 2019, the Company issued $3.0 billion of unsecured notes as follows:



Issue Date	Principal Amount (in millions)		Maturity Date	Fixed vs. Floating	Interest Rate	Discount (in millions)
April 2019	$	1,500	April 2029	Fixed	3.650%	$	9
April 2019	$	1,500	April 2049	Fixed	4.550%	$	19

Interest on the notes issued in 2019 is payable semiannually in arrears in April and October of each year until maturity.

The indentures governing the notes issued in 2019 and 2017 contain a provision that allows the Company to redeem these notes at any time, in whole or in part, at specified redemption prices, plus accrued interest, if any, up to the date of redemption. The indentures also contain a provision that allows the holders of the notes to require the Company to repurchase all or any part of their notes if a change of control triggering event occurs. If elected under the change of control provisions, the repurchase of the notes will occur at a purchase price of 101% of the principal amount, plus accrued interest, if any, on such notes up to the date of purchase. The indentures governing the notes do not limit the aggregate principal amount of debt securities that the Company may issue and do not require the Company to maintain specified financial ratios or levels of net worth or liquidity. However, the indentures include various restrictive covenants, none of which is expected to impact the Company’s liquidity or capital resources.

Unsecured notes issued during 2017 were as follows:



Issue Date	Principal Amount (in millions)		Maturity Date	Fixed vs. Floating	Interest Rate	Discount (in millions)
May 2017	$	1,500	May 2027	Fixed	3.100%	$	9
May 2017	$	1,500	May 2047	Fixed	4.050%	$	23

Interest on the notes issued in 2017 is payable semiannually in arrears in May and November of each year until maturity.

The discounts associated with these issuances, which include the underwriting and issuance discounts, are recorded in long-term debt and are being amortized over the respective terms of the notes using the effective interest method.

During 2017, the Company completed a cash tender offer to purchase and retire $1.6 billion combined aggregate principal amount of its outstanding notes and recognized a loss on extinguishment of debt of $464 million.

Occasionally, the Company will utilize derivative financial instruments to hedge its exposure to changes in benchmark interest rates. As of January 31, 2020, the Company held forward interest rate swaps with notional amounts totaling $770 million. The fair value of these instruments was not material as of January 31, 2020.