NOTE 7: DEBT AND CREDIT FACILITIES

Debt

A summary of our long-term debt, including capital leases, is as follows:



	January 28, 2017			January 30, 2016
Secured
Mortgage payable, 7.68%, due April 2020	24			30
Other	3			5
Total secured debt	27			35
Unsecured
Net of unamortized discount:
Senior notes, 6.25%, due January 2018	650			649
Senior notes, 4.75%, due May 2020	499			499
Senior notes, 4.00%, due October 2021	500			500
Senior debentures, 6.95%, due March 2028	300			300
Senior notes, 7.00%, due January 2038	146			146
Senior notes, 5.00%, due January 2044	602			600
Other	50			76
Total unsecured debt	2,747			2,770

Total long-term debt	2,774			2,805
Less: current portion	(11		)	(10		)
Total due beyond one year		$2,763			$2,795

Our mortgage payable is secured by an office building that had a net book value of $59 at the end of 2016. Other secured debt as of January 28, 2017 and January 30, 2016 consisted primarily of capital lease obligations.

Required principal payments on long-term debt, excluding capital lease obligations, are as follows:



Fiscal year
2017		$10
2018	56
2019	8
2020	502
2021	500
Thereafter	1,764

On March 9, 2017, we issued $350 aggregate principal amount of 4.00% senior unsecured notes due March 2027 and $300 aggregate principal amount of 5.00% senior unsecured notes due January 2044 (the “2044 Notes”). The 2044 Notes will be a further issuance of, and will be fully fungible, rank equally in right of payment and form a single series with, our outstanding 5.00% senior unsecured notes due 2044. We intend to use the proceeds to prepay the outstanding principal and interest of our $650 senior unsecured notes due January 2018 (“2018 Notes”). On March 7, 2017 we provided a Notice of Redemption to the holders of the 2018 Notes to pay the outstanding principal and interest on April 6, 2017. The 2018 Notes are classified as long-term on our Consolidated Balance Sheet as of January 28, 2017.

Interest Expense

The components of interest expense, net are as follows:



Fiscal year	2016			2015			2014
Interest on long-term debt and short-term borrowings		$147			$153			$156
Less:
Interest income	(1		)	—			(1		)
Capitalized interest	(25		)	(28		)	(17		)
Interest expense, net		$121			$125			$138

Credit Facilities

As of January 28, 2017, we had total short-term borrowing capacity of $800 under our senior unsecured revolving credit facility (“revolver”) that expires in April 2020. Under the terms of our revolver, we pay a variable rate of interest and a commitment fee based on our debt rating. The revolver is available for working capital, capital expenditures and general corporate purposes. We have the option to increase the revolving commitment by up to $200, to a total of $1,000, provided that we obtain written consent from the lenders.

The revolver requires that we maintain an adjusted debt to earnings before interest, income taxes, depreciation, amortization and rent (“EBITDAR”) leverage ratio of no more than four times. As of January 28, 2017 and January 30, 2016, we were in compliance with this covenant.

Our $800 commercial paper program allows us to use the proceeds to fund operating cash requirements. Under the terms of the commercial paper agreement, we pay a rate of interest based on, among other factors, the maturity of the issuance and market conditions. The issuance of commercial paper has the effect, while it is outstanding, of reducing available liquidity under the revolver by an amount equal to the principal amount of commercial paper.

As of January 28, 2017 and January 30, 2016, we had no issuances outstanding under our commercial paper program and no borrowings outstanding under our revolver.

Our wholly owned subsidiary in Puerto Rico maintains a $52 unsecured borrowing facility to support our expansion into that market. The facility expires in November 2018 and borrowings on this facility incur interest based upon the LIBOR plus 1.275% per annum and also incurs a fee based on our unused commitment. As of January 28, 2017 and January 30, 2016, we had $50 and $52 outstanding on this facility which is included as a component in other unsecured debt.