Current Liabilities

3 Months Ended

Oct. 31, 2021

Other Liabilities Disclosure [Abstract]

Current Liabilities

5. Current Liabilities

Short-Term Debt

On May 2, 2019 we entered into an amended and restated credit agreement with certain institutional lenders with an aggregate principal amount of $1.4 billion, including a $1 billion unsecured revolving credit facility that matures on May 2, 2024 and a $400 million unsecured term loan that was due on February 1, 2021. On November 1, 2021 this agreement was terminated. See Note 12, "Subsequent Events" for more information.

Unsecured Revolving Credit Facility

The amended and restated credit agreement we entered into on May 2, 2019 includes a $1 billion unsecured revolving credit facility that will expire on May 2, 2024. Under this agreement we may, subject to certain customary conditions including lender approval, on one or more occasions increase commitments under the unsecured revolving credit facility in an amount not to exceed $250 million in the aggregate and may extend the maturity date up to two times. Advances under the unsecured revolving credit facility accrue interest at rates that are equal to, at our election, either Bank of America's alternate base rate plus a margin that ranges from 0.0% to 0.1% or the London Interbank Offered Rate (LIBOR) plus a margin that ranges from 0.69% to 1.1%. Actual margins under either election will be based on our senior debt credit ratings. The amended and restated credit agreement includes customary affirmative and negative covenants, including financial covenants that require us to maintain a ratio of total gross debt to annual earnings before interest, taxes, depreciation and amortization (EBITDA) of not greater than 3.25 to 1.00 as of any date and a ratio of annual EBITDA to annual interest expense of not less than 3.00 to 1.00 as of the last day of each fiscal quarter. As of October 31, 2021 we were compliant with all required covenants. We repaid the $1 billion that was outstanding as of July 31, 2020 under this unsecured revolving credit facility during the first quarter of fiscal 2021, and at October 31, 2021 no amounts were outstanding. We paid no interest on the unsecured revolving credit facility during the three months ended October 31, 2021 and $1 million during the three months ended October 31, 2020.

Term Loan

On February 1, 2021, we paid the $325 million remaining balance of the term loan upon maturity and at October 31, 2021, no amount was outstanding. The term loan accrued interest at rates that were equal to, at our election, either Bank of America's alternate base rate plus a margin that ranges from 0.0% to 0.125% or LIBOR plus a margin that ranges from 0.625% to 1.125%. Interest on the term loan was payable monthly. We paid no interest on the term loan during the three months ended October 31, 2021 and $1 million during the three months ended October 31, 2020. Under the amended and restated agreement we may, subject to certain customary conditions including lender approval, on one or more occasions increase commitments under the term loan in an amount not to exceed $400 million in the aggregate.

Other Current Liabilities

Other current liabilities were as follows at the dates indicated:

(In millions)	October 31, 2021		July 31, 2021
Executive deferred compensation plan liabilities	$	171	$	153
Current portion of operating lease liabilities	67		66
Reserve for returns and credits	21		21
Amounts due for share repurchases	20		17
Accrued sales and property taxes	17		5
Merchant and consumer payments processing reserves	12		10
Reserve for promotional discounts and rebates	9		10
Current portion of dividend payable	9		9
Interest payable	7		1
Income taxes payable	3		3
Other	49		66
Total other current liabilities	$	385	$	361

The balances of several of our other current liabilities, particularly our reserves for product returns and promotional discounts and rebates, are affected by the seasonality of our business. See Note 1, “Description of Business and Summary of Significant Accounting Policies – Seasonality,” for more information.