DEBT OBLIGATIONS

4 Months Ended

May 26, 2018

DEBT OBLIGATIONS

DEBT OBLIGATIONS

2.DEBT OBLIGATIONS

Long-term debt consists of:

	May 26,		February 3,
	2018		2018
1.50% to 8.00% Senior Notes due through 2048	$	12,005	$	12,201
5.63% to 12.75% Mortgages due in varying amounts through 2027		22		22
1.68% Commercial paper borrowings		—		2,121
2.82% Term Loan due 2019		1,000		—
Other		450		443
Total debt, excluding capital leases and financing obligations		13,477		14,787
Less current portion		(2,189)		(3,509)
Total long-term debt, excluding capital leases and financing obligations	$	11,288	$	11,278

On March 16, 2018, the Company obtained a $1,000 term loan with a maturity date of March 16, 2019.  The funds were drawn on March 26, 2018 and were used to reduce outstanding commercial paper borrowings.  Under the terms of the agreement, interest rates are adjusted monthly based on the Company’s Public Debt Rating and prevailing LIBOR rates. 

Additionally, in the first quarter of 2018, the Company repaid, upon maturity, $200 of senior notes bearing an interest rate of 7%.

The fair value of the Company’s long-term debt, including current maturities, was estimated based on the quoted market prices for the same or similar issues adjusted for illiquidity based on available market evidence.  If quoted market prices were not available, the fair value was based upon the net present value of the future cash flow using the forward interest rate yield curve in effect at May 26, 2018 and February 3, 2018.  At May 26, 2018, the fair value of total debt was $13,509 compared to a carrying value of $13,477.  At February 3, 2018, the fair value of total debt was $15,167 compared to a carrying value of $14,787.