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Debt
 3 Months Ended
Aug. 31, 2023
Debt Disclosure [Abstract]  
Debt Debt
(In thousands)As of August 31As of February 28
Debt Description (1)
Maturity Date20232023
Revolving credit facility (2)
June 2028$— $— 
Term loan (2)
June 2024300,000 300,000 
Term loan (2)
October 2026699,563 699,493 
3.86% Senior notesApril 2023— 100,000 
4.17% Senior notesApril 2026200,000 200,000 
4.27% Senior notesApril 2028200,000 200,000 
Financing obligationsVarious dates through February 2059522,075 522,526 
Non-recourse notes payableVarious dates through December 203017,007,618 16,360,092 
Total debt18,929,256 18,382,111 
Less: current portion(819,639)(579,468)
Less: unamortized debt issuance costs(25,195)(27,506)
Long-term debt, net$18,084,422 $17,775,137 

(1)    Interest is payable monthly, with the exception of our senior notes, which are payable semi-annually.
(2)    Borrowings accrue interest at variable rates based on SOFR, the federal funds rate, or the prime rate, depending on the type of borrowing.

Revolving Credit Facility. Borrowings under our $2.00 billion unsecured revolving credit facility (the “credit facility”) are available for working capital and general corporate purposes.  We pay a commitment fee on the unused portions of the available funds. Borrowings under the credit facility are either due “on demand” or at maturity depending on the type of borrowing.  Borrowings with “on demand” repayment terms are presented as short-term debt, while amounts due at maturity are presented as long-term debt.  As of August 31, 2023, the unused capacity of $2.00 billion was fully available to us. In June 2023, the credit facility was amended to extend the maturity date to June 2028 with no other material changes to the terms of the agreement.
Term Loans. Borrowings under our $300 million and $700 million term loans are available for working capital and general corporate purposes. The interest rate on our term loans was 6.30% as of August 31, 2023. The $300 million term loan matures in June 2024 and was therefore classified as current. The $700 million term loan was classified as long-term debt as no repayments are scheduled to be made within the next 12 months.

Senior Notes. The 3.86% senior notes matured during the first quarter of fiscal 2024. Borrowings under our unsecured senior notes totaling $400 million are available for working capital and general corporate purposes. As of August 31, 2023, all notes were classified as long-term debt as no repayments are scheduled to be made within the next 12 months.
 
Financing Obligations.  Financing obligations relate to stores subject to sale-leaseback transactions that do not qualify for sale accounting.  The financing obligations were structured at varying interest rates and generally have initial lease terms ranging from 15 to 20 years with payments made monthly.  We have not entered into any new sale-leaseback transactions since fiscal 2009. In the event the agreements are modified or extended beyond their original term, the related obligation is adjusted based on the present value of the revised future payments, with a corresponding change to the assets subject to these transactions. Upon modification, the amortization of the obligation is reset, resulting in more of the payments being applied to interest expense in the initial years following the modification.
 
Non-Recourse Notes Payable.  The non-recourse notes payable relate to auto loans receivable funded through non-recourse funding vehicles.  The timing of principal payments on the non-recourse notes payable is based on the timing of principal collections and defaults on the related auto loans receivable. The current portion of non-recourse notes payable represents principal payments that are due to be distributed in the following period.
 
Notes payable related to our asset-backed term funding transactions accrue interest predominantly at fixed rates and have scheduled maturities through December 2030, but may mature earlier, depending upon the repayment rate of the underlying auto loans receivable. 

Information on our funding vehicles of non-recourse notes payable as of August 31, 2023 are as follows:
(In billions)Capacity
Warehouse facilities:
September 2023 expiration$2.30 
December 2023 expiration0.50 
February 2024 expiration2.80 
Combined warehouse facility limit$5.60 
Unused capacity$1.18 
Non-recourse notes payable outstanding:
Warehouse facilities$4.42 
Asset-backed term funding transactions12.59 
Non-recourse notes payable$17.01 

We generally enter into warehouse facility agreements for one-year terms and typically renew the agreements annually. In September 2023, the $2.30 billion facility was renewed with an expiration date of August 2024. The return requirements of warehouse facility investors could fluctuate significantly depending on market conditions.  At renewal, the cost, structure and capacity of the facilities could change.  These changes could have a significant impact on our funding costs.
 
See Note 4 for additional information on the related auto loans receivable.
 
Capitalized Interest.  We capitalize interest in connection with the construction of certain facilities.  For the six months ended August 31, 2023 and 2022, we capitalized interest of $2.9 million and $2.1 million, respectively.
 
Financial Covenants.  The credit facility, term loans and senior note agreements contain representations and warranties, conditions and covenants.  We must also meet financial covenants in conjunction with certain financing obligations.  The agreements governing our non-recourse funding vehicles contain representations and warranties, as well as financial covenants and performance triggers related to events of default.  As of August 31, 2023, we were in compliance with these financial covenants and our non-recourse funding vehicles were in compliance with these performance triggers.