Short-Term Borrowings and Lines of Credit

12 Months Ended

Jan. 29, 2016

Short-Term Borrowings and Lines of Credit

Short-Term Borrowings and Lines of Credit

NOTE 5: Short-Term Borrowings and Lines of Credit

The Company has a $1.75 billion unsecured revolving credit agreement (the 2014 Credit Facility) with a syndicate of banks that expires in August 2019.  Subject to obtaining commitments from the lenders and satisfying other conditions specified in the 2014 Credit Facility, we may increase the aggregate availability by an additional $500 million. The 2014 Credit Facility supports our commercial paper program and has a $500 million letter of credit sublimit.  Letters of credit issued pursuant to the facility reduce the amount available for borrowing under its terms.  Borrowings made are unsecured and are priced at fixed rates based upon market conditions at the time of funding in accordance with the terms of the facility.  The 2014 Credit Facility contains certain restrictive covenants, which include maintenance of an adjusted debt leverage ratio as defined by the credit agreement.  The Company was in compliance with those covenants at January 29, 2016.   As of January 29, 2016, there were $43 million of outstanding borrowings under the commercial paper program with a weighted average interest rate of 0.60% and no outstanding borrowings or letters of credit under the 2014 Credit Facility. As of January 30, 2015, there were no outstanding borrowings under the Company’s commercial paper program and no outstanding borrowings or letters of credit under the credit facility.