XML 26 R13.htm IDEA: XBRL DOCUMENT v3.23.1
Debt
 12 Months Ended
Jan. 28, 2023
Debt Disclosure [Abstract]  
Debt Debt
Long-term debt. Unsecured senior debt (the “Senior Notes”), net of unamortized discounts and debt issuance costs, as of January 28, 2023 and January 29, 2022 consisted of the following:

($000)20222021
3.375% Senior Notes due 2024
249,257 248,808 
4.600% Senior Notes due 2025
697,161 695,888 
0.875% Senior Notes due 2026
496,038 494,814 
4.700% Senior Notes due 2027
239,899 239,470 
4.800% Senior Notes due 2030
132,602 132,431 
1.875% Senior Notes due 2031
495,254 494,691 
5.450% Senior Notes due 2050
146,299 146,223 
Total long-term debt$2,456,510 $2,452,325 

Interest on all Senior Notes is payable semi-annually in April and October and all Senior Notes are subject to prepayment penalties for early payment of principal.

As of January 28, 2023 and January 29, 2022, total unamortized discount and debt issuance costs were $18.5 million and $22.7 million, respectively, and were classified as a reduction of long-term debt.

As of January 28, 2023 and January 29, 2022, the aggregate fair value of the seven outstanding series of Senior Notes was approximately $2.3 billion and $2.6 billion, respectively. The fair value is estimated by obtaining comparable market quotes which are considered to be Level 1 inputs under the fair value measurements and disclosures guidance.

The following table shows scheduled annual principal payments on long-term debt:

($000)
2024$250,000 
2025$700,000 
2026$500,000 
2027$241,786 
Thereafter$783,205 

The table below shows the components of interest expense and income for fiscal 2022, 2021, and 2020:

($000)202220212020
Interest expense on long-term debt$84,558 $88,286 $88,544 
Interest expense on short-term debt— — 7,863 
Other interest expense1,668 1,351 3,908 
Capitalized interest(5,678)(14,476)(12,251)
Interest income(77,706)(833)(4,651)
Interest expense, net$2,842 $74,328 $83,413 

Revolving credit facilities. In February 2022 (the “Effective Date”), the Company entered into a new, $1.3 billion senior unsecured revolving Credit Agreement (the “2022 Credit Facility”). The 2022 Credit Facility replaced the Company’s previous $800 million unsecured revolving credit facility, which was entered into in July 2019 (the “Prior Credit Facility”). The 2022 Credit Facility expires in February 2027 and may be extended at the Company’s option for up to two additional one year periods subject to customary conditions. The new facility contains a $300 million sublimit for issuance of standby letters of credit. It also contains an option allowing the Company to increase the size of its credit facility by up to an additional $700 million, with the agreement of the committing lenders. The
interest rate on borrowings under the 2022 Credit Facility is a term rate based on the Secured Overnight Financing Rate (“Term SOFR”) (or an alternate benchmark rate, if Term SOFR is no longer available) plus an applicable margin and is payable quarterly and upon maturity. The 2022 Credit Facility is subject to a quarterly Consolidated Adjusted Debt to Consolidated EBITDAR financial leverage ratio covenant. As of January 28, 2023, the Company was in compliance with this financial covenant.

As of January 28, 2023, the Company had no borrowings or standby letters of credit outstanding under the 2022 Credit Facility and the $1.3 billion credit facility remained in place and available.

In March 2020, the Company borrowed $800 million, available under its Prior Credit Facility. Interest on the loan was based on LIBOR plus 0.875% (or 1.76%). In October 2020, the Company repaid in full the amount it had borrowed under the Prior Credit Facility.

Standby letters of credit and collateral trust. The Company uses standby letters of credit outside of its revolving credit facility in addition to a funded trust to collateralize some of its insurance obligations. The Company has also used standby letters of credit outside of its revolving credit facility to collateralize some of its trade payable obligations. As of January 28, 2023 and January 29, 2022, the Company had $2.6 million and $3.3 million, respectively, in standby letters of credit and $57.8 million and $56.7 million, respectively, in a collateral trust. The standby letters of credit are collateralized by restricted cash and the collateral trust consists of restricted cash, cash equivalents, and investments.

Trade letters of credit. The Company had $7.6 million and $19.3 million in trade letters of credit outstanding at January 28, 2023 and January 29, 2022, respectively.