DEBT OBLIGATIONS

4 Months Ended

May 22, 2021

DEBT OBLIGATIONS

DEBT OBLIGATIONS

2. DEBT OBLIGATIONS

Long-term debt consists of:

	May 22,		January 30,
	2021		2021
1.70% to 8.00% Senior Notes due through 2049	$	11,602	$	11,899
Other		1,121		511
Total debt, excluding obligations under finance leases		12,723		12,410
Less current portion		(1,049)		(844)
Total long-term debt, excluding obligations under finance leases	$	11,674	$	11,566

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 22, 2021 and January 30, 2021. At May 22, 2021, the fair value of total debt was $14,375 compared to a carrying value of $12,723. At January 30, 2021, the fair value of total debt was $14,680 compared to a carrying value of $12,410.

Additionally, in the first quarter of 2021, the Company repaid $300 of senior notes bearing an interest rate of 2.60% using cash on hand.

During the first quarter of 2021, the Company acquired 28, previously leased, properties for a purchase price of $455. Separately, the Company also entered into a transaction to sell those properties to a third party for total proceeds of $621. Total cash proceeds received as a result of the transactions was $166. The sale transaction did not qualify for sale-leaseback accounting treatment. As a result, the Company recorded property, plant and equipment for the $455 price paid and recorded a $621 financing obligation. The leases have a base term of 25 years and twelve option periods of five years each. The Company has the option to purchase the individual properties for fair market value at the end of the base term or at the end of any option period. The Company is obligated to repurchase the properties at the end of the base term for $300 if the lessor exercises its put option.