Debt and Credit Agreements

3 Months Ended

May 03, 2014

Debt and Credit Agreements

On May 31, 2013, the Company entered into a new credit agreement (the "May 2018 Revolving Credit Facility") with Bank of America, N.A., as Administrative Agent and other lending institutions named therein. The May 2018 Revolving Credit Facility provides for a maximum borrowing of $1.0 billion, which pursuant to an accordion feature may be increased to $1.5 billion upon our request and the agreement of the lenders participating in the increase. Borrowings may be syndicated loans, swing line loans, multicurrency loans, or letters of credit, the combined sum of which may not exceed the maximum borrowing amount. Amounts borrowed may be repaid and reborrowed from time to time until May 31, 2018. Borrowings will bear interest at various interest rates depending on the type of borrowing, and will reflect a percentage spread based on the Company's credit rating and fixed charge coverage ratio. The Company will pay a facility fee at rates that range from 0.08% to 0.225% per annum depending on our credit rating and fixed charge coverage ratio. The May 2018 Revolving Credit Facility is unsecured and ranks pari passu with the Company's public notes and other indebtedness and contains customary affirmative and negative covenants for credit facilities of this type. The May 2018 Revolving Credit Facility also contains financial covenants that require the Company to maintain a minimum fixed charge coverage ratio and a maximum adjusted funded debt to total capitalization ratio.

The Company has a commercial paper program ("Commercial Paper Program") that allows it to issue up to $1.0 billion of unsecured commercial paper notes ("Commercial Paper Notes") from time to time. The May 2018 Revolving Credit Facility serves as a back-up to the Commercial Paper Program. The Company typically uses proceeds from the Commercial Paper Notes for general purposes, including working capital, capital expenditures, acquisitions and share repurchases. Maturities of the Commercial Paper Notes vary, but may not exceed 397 days from the date of issue. During the first quarter of 2014, the Company borrowed under the Commercial Paper Program to support its seasonal working capital requirements. As of May 3, 2014, $75.0 million of Commercial Paper Notes were outstanding, with a weighted average remaining maturity of three days and a weighted average interest rate of 0.3%. The maximum amount outstanding under the Commercial Paper Program during the first quarter of 2014 was $150 million.

The Company has various other lines of credit under which it may borrow a maximum of $160.5 million. At May 3, 2014, the Company had outstanding borrowings of $100.2 million and outstanding letters of credit of $0.2 million related to these lines of credit, leaving $60.1 million of available credit at that date.

The major components of the Company’s outstanding debt as of May 3, 2014 and February 1, 2014 are as follows (in thousands):



	May 3, 2014			February 1, 2014
January 2018 Notes	498,988			498,919
January 2023 Notes	499,164			499,140
Commercial Paper	75,000			—
Other lines of credit	100,239			100,100
Capital lease obligations and other notes payable	25,778			6,028
	1,199,169			1,104,187
Less: current portion	(182,272		)	(103,982		)
Net long-term debt	$	1,016,897		$	1,000,205

The Company entered into $21.8 million of new capital lease obligations in the first quarter of 2014.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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