Debt And Credit Facilities

9 Months Ended

Oct. 29, 2011

Debt And Credit Facilities [Abstract]

Debt And Credit Facilities

NOTE 4: DEBT AND CREDIT FACILITIES

Debt  

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

	October 29, 2011			January 29, 2011			October 30, 2010
Secured
Series 2007-2 Class A Notes, one-month LIBOR plus 0.06% per year, due April 2012	$	454		$	454		$	454
Series 2007-2 Class B Notes, one-month LIBOR plus 0.18% per year, due April 2012		46			46			46
Mortgage payable, 7.68%, due April 2020		52			55			57
Other		13			14			13
		565			569			570
Unsecured
Senior notes, 6.75%, due June 2014, net of unamortized discount		399			399			399
Senior notes, 6.25%, due January 2018, net of unamortized discount		648			647			647
Senior notes, 4.75%, due May 2020, net of unamortized discount		498			498			498
Senior notes, 4.00%, due October 2021, net of unamortized discount		499			—			—
Senior debentures, 6.95%, due March 2028		300			300			300
Senior notes, 7.00%, due January 2038, net of unamortized discount		343			343			343
Other		64			25			55
		2,751			2,212			2,242
Total long-term debt		3,316			2,781			2,812
Less: current portion		(506	)		(6	)		(6	)
Total due beyond one year	$	2,810		$	2,775		$	2,806

On October 5, 2011, we issued $500 of senior unsecured notes at 4.00%, due October 15, 2021. After deducting the original issue discount of $1, net proceeds from the offering were $499. We intend to use the net proceeds from the issuance of the notes for general corporate purposes.

Our interest rate swap agreements (collectively, the "swap"), which have a $650 notional amount maturing in 2018, are intended to hedge the exposure of changes in the fair value of our fixed-rate senior notes due in 2018 from interest rate risk. Under the swap, we receive a fixed rate of 6.25% and pay a variable rate based on one-month LIBOR plus a margin of 2.9% (3.1% at October 29, 2011). The swap is designated as a fully effective fair value hedge. As such, the interest rate swap fair value is included in other assets or other liabilities on our condensed consolidated balance sheet, with an offsetting adjustment to the carrying value of our long-term debt (included in other unsecured debt in the table above). See Note 5: Fair Value Measurements for additional information about our swap.

On November 22, 2011, we issued $325 Series 2011-1 Class A Notes at 2.28%, due October 17, 2016. The notes are secured by a portion of our credit card receivables. We intend to use the net proceeds from the issuance of the notes for general corporate purposes.

Credit Facilities

On June 23, 2011, we entered into a new unsecured revolving credit facility ("revolver") with a capacity of $600, which is scheduled to expire in June 2016. This revolver replaced our previous $650 unsecured line of credit which was scheduled to expire in August 2012. Under the terms of the 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, including liquidity support for our commercial paper program. We have the option to increase the revolving commitment by up to $100, to a total of $700, provided that we obtain written consent from the lenders.

The revolver requires that we maintain a leverage ratio, defined as Adjusted Debt to Earnings before Interest, Income Taxes, Depreciation, Amortization and Rent ("EBITDAR"), of less than four times. As of October 29, 2011, we were in compliance with this covenant.

As of October 29, 2011, we had total short-term borrowing capacity available for general corporate purposes of $900. Of the total capacity, we had $600 under our commercial paper program, which is backed by our revolver expiring June 2016, and $300 under our Variable Funding Note facility ("2007-A VFN") that expires in January 2012. As of October 29, 2011, we had no issuances under our commercial paper program and no borrowings under our revolver or our 2007-A VFN.