Debt

12 Months Ended

Jan. 29, 2022

Debt Disclosure [Abstract]

Debt

2. Debt

Long-term debt consists of the following unsecured senior debt:

			Outstanding
Maturity (Dollars in Millions)	Effective Rate	Coupon Rate	January 29, 2022	January 30, 2021
2023	3.25%	3.25%	$164	$350
2023	4.78%	4.75%	111	184
2025	9.50%	9.50%	113	600
2025	4.25%	4.25%	353	650
2029	7.36%	7.25%	42	42
2031	3.40%	3.38%	500	—
2033	6.05%	6.00%	112	113
2037	6.89%	6.88%	101	101
2045	5.57%	5.55%	427	427
Outstanding unsecured senior debt			1,923	2,467
Unamortized debt discounts and deferred financing costs			(13)	(16)
Unsecured senior debt			$1,910	$2,451
Effective interest rate			4.89%	5.90%

Our unsecured senior long-term debt is classified as Level 1, financial instruments with unadjusted, quoted prices listed on active market exchanges. The estimated fair value of our unsecured senior debt was $2.0 billion at January 29, 2022 and $2.8 billion at January 30, 2021.

In March 2021, we issued $500 million in aggregate principal amount of 3.375% notes with semi-annual interest payments beginning in November 2021. The notes include coupon rate step ups if our long-term debt is downgraded to below a BBB- credit rating by S&P Global Ratings or Baa3 by Moody’s Investors Service, Inc. The notes mature in May 2031. Proceeds of the issuance and cash on hand were used to pay the principal, premium, and accrued interest of the notes which were purchased as part of the cash tender offer in April 2021.

In April 2021, we completed a cash tender offer for $1.0 billion of senior unsecured debt. We recognized a $201 million loss on extinguishment of debt in the first quarter of 2021, which includes the $192 million tender premium paid to tendering note holders in accordance with the terms of the tender offer, a $6 million non-cash write-off of deferred financing costs and original issue discounts associated with the extinguished debt, and $3 million in other fees.

In October 2021, we entered into a Credit Agreement with various lenders which provides for a $1.0 billion senior unsecured five-year revolving credit facility that will mature in October 2026 and replaced our existing senior secured revolving credit facility. Among other things, the agreement includes a maximum leverage ratio financial covenant and restrictions on liens and subsidiary indebtedness, all of which are generally consistent with the prior 2019 senior unsecured five-year revolving credit facility. We may request an increase in revolving credit commitments under the facility of up to $500 million in certain circumstances. Events of default under the Credit Agreement include, among other things, a change of control of the Company and the Company’s default on other debt exceeding $75 million. No borrowings were outstanding on the credit facility in place as of January 29, 2022 or January 30, 2021.

Our various debt agreements contain covenants including limitations on additional indebtedness and certain financial tests. As of January 29, 2022, we were in compliance with all covenants of the various debt agreements.

We also had outstanding trade letters of credit totaling approximately $45 million at January 29, 2022 issued under uncommitted lines with two banks.