Debt And Credit Facilities

12 Months Ended

Feb. 01, 2020

NOTE 9: DEBT AND CREDIT FACILITIES

Debt

A summary of our long-term debt is as follows:



	February 1, 2020			February 2, 2019
Long-term debt, net of unamortized discount:
Senior notes, 4.75%, due May 2020		$—			$500
Senior notes, 4.00%, due October 2021	500			500
Senior notes, 4.00%, due March 2027	349			349
Senior debentures, 6.95%, due March 2028	300			300
Senior notes, 4.375%, due April 2030	500			—
Senior notes, 7.00%, due January 2038	147			146
Senior notes, 5.00%, due January 2044	897			895
Other¹	(17		)	(5		)
Total long-term debt	2,676			2,685

Less: current portion	—			(8		)
Total due beyond one year		$2,676			$2,677

¹ Other primarily includes deferred bond issue costs.

Required principal payments on long-term debt are as follows:



Fiscal year
2020		$—
2021	500
2022	—
2023	—
2024	—
Thereafter	2,264

During 2019, we issued $500 aggregate principal amount of 4.375% senior unsecured notes due April 2030. With the proceeds of this issuance, we retired our $500 senior unsecured notes that were due May 2020. We incurred $8 of net interest expense related to the refinancing, which primarily included a one-time payment to 2020 Senior Note holders under a make-whole provision.

Interest Expense

The components of interest expense, net are as follows:



Fiscal year	2019			2018			2017
Interest on long-term debt and short-term borrowings		$151			$146			$168
Less:
Interest income	(10		)	(15		)	(5		)
Capitalized interest	(39		)	(27		)	(27		)
Interest expense, net		$102			$104			$136

Credit Facilities

As of February 1, 2020, we had total short-term borrowing capacity of $800 under the Revolver that expires in September 2023. The Revolver contains customary representations, warranties, covenants and terms, including paying 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. Provided that we obtain written consent from the lenders, we have the option to increase the Revolver by up to $200, to a total of $1,000, and two options to extend the Revolver by one year. For more information, see subsequent events in Note 1: Nature of Operations and Summary of Significant Accounting Policies.

The Revolver requires that we maintain an adjusted debt to EBITDAR leverage ratio of no more than four times. The Revolver’s ratio calculation methodology has not been impacted by the adoption of the Lease Standard. As of February 1, 2020 and February 2, 2019, 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 February 1, 2020 and February 2, 2019, we had no issuances outstanding under our commercial paper program and no borrowings outstanding under our Revolver.

Our wholly owned subsidiary in Puerto Rico maintained a $52 unsecured borrowing facility to support our expansion into that market. Borrowings on this facility incurred interest at an annual rate based upon LIBOR plus 1.275% and also incurred a fee based on any unused commitment. In 2018, we fully repaid $47 outstanding on this facility, and did not renew the facility upon expiration in the fourth quarter of 2018.