DEBT OBLIGATIONS

4 Months Ended

May 24, 2025

DEBT OBLIGATIONS

DEBT OBLIGATIONS

2. DEBT OBLIGATIONS

Long-term debt consists of:

	May 24,		February 1,
	2025		2025
1.70% to 8.00% Senior Notes due through 2064	$	14,857	$	14,854
Other		1,081		1,055
Total debt, excluding obligations under finance leases		15,938		15,909
Less current portion		(606)		(104)
Total long-term debt, excluding obligations under finance leases	$	15,332	$	15,805

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 24, 2025 and February 1, 2025. At May 24, 2025, the fair value of total debt was $14,375 compared to a carrying value of $15,938. At February 1, 2025, the fair value of total debt was $14,648 compared to a carrying value of $15,909.

As of May 25, 2024, the Company had five forward-starting interest rate swaps with a maturity date of August 1, 2027 and an aggregate notional amount totaling $5,350. These forward-starting interest rate swaps were hedging the variability in future benchmark interest payments attributable to changing interest rates on the forecasted issuance of fixed-rate debt that was issued in the third quarter of 2024.  A notional amount of $2,350 of these forward-starting interest rate swaps was designated as a cash-flow hedge as defined by GAAP.  The remainder of the notional amount of $3,000 of the forward-starting interest rate swaps was not designated as a cash-flow hedge. Accordingly, the changes in the fair value of these forward-starting interest rate swaps not designated as cash-flow hedges were recognized through net earnings. In the first quarter of 2024, the Company recognized an unrealized gain of $79 related to these forward-starting interest rate swaps that is included in “(Loss) gain on investments” in the Company’s Consolidated Statements of Operations.

Cash paid for interest expense related to long-term debt including obligations under finance leases was $329 and $106 for the first quarters ended May 24, 2025 and May 25, 2024, respectively. Interest income of approximately $63 and $36 for the first quarters of 2025 and 2024, respectively, is included in “Net interest expense” in the Company’s Consolidated Statements of Operations.

As of May 24, 2025, and February 1, 2025, Other debt consisted primarily of a financial obligation related to a sale transaction for properties that did not qualify for sale-leaseback accounting treatment in 2021.