Long-Term Debt and Obligations Under Finance Leases

12 Months Ended

Jan. 29, 2022

Long-Term Debt [Abstract]

Long-Term Debt

13. Long-Term Debt and Obligations Under Finance Leases

The components of long-term debt and obligations under finance leases are as follows:

	January 29,		January 30,
($ in millions)	2022		2021
4% Senior Notes due 2029	$	394	$	—
8.5% debentures paid January 2022		—		98
Unamortized gain related to interest rate swaps (1)		—		2
Obligations under finance leases		63		10
	$	457	$	110
Current portion of debt and obligations under finance leases		6		102
	$	451	$	8

(1) In 2009, we terminated an interest rate swap at a gain. This gain was amortized as part of interest expense over the term of the debt using the effective-yield method.

During 2021 we completed the sale of $400 million aggregate principal amount of 4% Senior Notes due 2029 (the “4% Notes”). We received net proceeds from the offering of $395 million, after deducting the initial purchasers’ discount. The proceeds will be used for general corporate purposes.

The 4% Notes were issued pursuant to an indenture by and among the Company, certain guarantors from time to time party thereto, and U.S. Bank National Association, as trustee. The 4% Notes are the senior unsecured, unsubordinated obligations of the Company and are guaranteed, jointly and severally, by the Company’s current and, subject to certain exceptions, future subsidiaries that guarantee the Company’s secured revolving credit facility or certain other debt of the Company or the guarantors.

Interest expense related to long-term debt and the amortization of the associated debt issuance costs was $12 million for 2021 and $8 million for both 2020 and 2019.