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Debt

6 Months Ended

Jul. 28, 2012

Note 2. Debt

Our outstanding debt is detailed in the table below. We were in compliance with the terms and conditions of all debt agreements for all periods presented.

	July 28, 2012		January 28, 2012		July 30, 2011		Interest Rate
	(in millions)

Senior secured term loan	$	1,996	$	1,996	$	1,996	Variable
Senior notes due 2018	795		795		795		7.750%
Senior subordinated notes	393		393		400		11.375%
Subordinated discount notes	180		306		334		13.000%
Asset-based revolving credit facility	—		—		2		Variable

Total debt	3,364		3,490		3,527

Less current portion	1		127		140

Long-term debt	$	3,363	$	3,363	$	3,387

13% Subordinated Discount Notes due 2016

On May 1, 2012, as required pursuant to the indenture governing our Subordinated Discount Notes (“Subordinated Discount Notes Indenture”), we redeemed that portion of each Subordinated Discount Note outstanding on such date equal to the amount sufficient, but not in excess of the amount necessary, to ensure that such Subordinated Discount Note will not be an applicable high yield discount obligation (“AHYDO”) within the meaning of Section 163(i)(1) of the Internal Revenue Code of 1986, as amended. These redemptions were at a price equal to 100% of the Accreted Value (as defined in the Subordinated Discount Notes Indenture) of such portion as of the date of redemption. The aggregate payment of $127 million made on May 1, 2012, was required to ensure the Subordinated Discount Notes would not be AHYDO instruments.

Senior Secured Asset-Based Revolving Credit Facility

Our senior secured asset-based revolving credit facility provides an aggregate amount of $850 million in commitments, subject to a borrowing base, which are scheduled to terminate on the earlier of April 15, 2014, or 45 days prior to the maturity date of any class of term loans in the Company’s senior secured term loan facility. As of July 28, 2012, the borrowing base was $690 million, of which we had no outstanding borrowings, $63 million of outstanding letters of credit, and $627 million of excess availability.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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