Debt

3 Months Ended

Apr. 29, 2023

Debt Disclosure [Abstract]

Debt

3. Debt

Outstanding borrowings under the revolving credit facility, recorded as short-term debt, were $765 million as of April 29, 2023, and approximately $735 million remained available under the revolver as of that date. No amounts were outstanding at April 30, 2022 under our previous credit agreement.

Long-term debt, which excludes borrowings on the revolving credit facility, consists of the following unsecured debt:

			Outstanding
Maturity (Dollars in Millions)	Effective Rate at Issuance	Coupon Rate	April 29, 2023	January 28, 2023	April 30, 2022
2023	3.25%	3.25%	$—	$164	$164
2023	4.78%	4.75%	111	111	111
2025	9.50%	9.75%	113	113	113
2025	4.25%	4.25%	353	353	353
2029	7.36%	7.25%	42	42	42
2031	3.40%	3.63%	500	500	500
2033	6.05%	6.00%	112	112	112
2037	6.89%	6.88%	101	101	101
2045	5.57%	5.55%	427	427	427
Outstanding unsecured senior debt			1,759	1,923	1,923
Unamortized debt discounts and deferred financing costs			(11)	(11)	(13)
Current portion of unsecured senior debt			(111)	(275)	(164)
Long-term unsecured senior debt			$1,637	$1,637	$1,746
Effective interest rate at issuance			5.04%	4.89%	4.89%

Our estimated fair value of unsecured senior long-term debt is determined using Level 1 inputs, using financial instruments with unadjusted, quoted prices listed on active market exchanges. The estimated fair value of our unsecured senior debt was $1.3 billion at April 29, 2023, $1.6 billion at January 28, 2023, and $1.9 billion at April 30, 2022.

In February 2023, $164 million in aggregate principal amount of our 3.25% notes matured and was repaid.

During the first quarter of 2023, S&P downgraded our senior unsecured credit rating from BB+ to BB and Moody's downgraded our rating from Ba2 to Ba3. As a result of the downgrades, the interest rate on our 3.375% notes due May 2031 and 9.50% notes due May 2025 will increase another 50 bps in May 2023 due to the coupon adjustment provisions within these notes. In 2022, our credit rating was also downgraded which resulted in the interest rates increasing 75 bps, of which 25 bps was effective in 2022 and the remaining 50 will become effective in May 2023. In total, the interest rate of the notes will increase 125 bps since their issuance, of which 25 bps was in effect during the three fiscal months ended April 29, 2023 and the remaining 100 bps will be effective in May 2023.

Our various debt agreements contain covenants including limitations on additional indebtedness and certain financial tests. As of April 29, 2023, we were in compliance with all covenants of the various debt agreements.