Annual report [Section 13 and 15(d), not S-K Item 405]

Short-Term Borrowings and Long-Term Debt

v3.25.1
Short-Term Borrowings and Long-Term Debt
 12 Months Ended
Feb. 01, 2025
Debt Disclosure [Abstract]  
Short-Term Borrowings and Long-Term Debt Short-Term Borrowings and Long-Term Debt
Short-term borrowings and long-term debt consist of the following:
(in millions) February 1, 2025 February 3, 2024
Short-Term Borrowings:
Unsecured commercial paper notes $ —  $ — 
$1.5 billion revolving credit facility
 —  — 
Total Short-Term Borrowings $ —  $ — 
Long-Term Debt:
4.00% Senior Notes, due May 2025
 $ 1,000.0  $ 1,000.0 
4.20% Senior Notes, due May 2028
 1,250.0  1,250.0 
2.65% Senior Notes, due December 2031
 800.0  800.0 
3.375% Senior Notes, due December 2051
 400.0  400.0 
Debt discount and issuance costs (18.8) (23.7)
Total Long-Term Debt $ 3,431.2  $ 3,426.3 
Less: Current portion $ 1,000.0  $ — 
Non-current portion of long-term debt $ 2,431.2  $ 3,426.3 
Short-Term Borrowings
Commercial Paper Program
In fiscal 2023, the Company established a commercial paper program to issue unsecured commercial paper notes with maturities up to 397 days from the date of issue, up to a maximum aggregate face or principal amount outstanding at any time of $1.5 billion. The net proceeds of note issuances are used for general corporate purposes. The Company’s revolving credit facility, which is discussed below, serves as a liquidity backstop for the repayment of notes outstanding under the program. The notes rank equally with all of our other unsecured and unsubordinated debt. We issued and repaid $3.2 billion and $1.1 billion principal amount of notes in fiscal 2024 and fiscal 2023, respectively, and incurred interest expense of $3.9 million and $2.6 million, respectively, related to these notes. At February 1, 2025 and February 3, 2024, no notes were outstanding under the program.
Revolving Credit Facility
The Company’s $1.5 billion five-year revolving credit facility (the “Revolving Credit Facility”), of which up to $350.0 million is available for letters of credit, is currently set to mature on December 8, 2026. At February 1, 2025 and February 3, 2024, we had letters of credit outstanding under the Revolving Credit Facility of $3.8 million and $4.1 million, respectively. We did not borrow under the Revolving Credit Facility in fiscal 2024 or fiscal 2023. In fiscal 2022, we borrowed and repaid $555.0 million of loans under the Revolving Credit Facility and incurred interest expense of $3.6 million related to these borrowings. We had no borrowings outstanding under the Revolving Credit Facility at February 1, 2025 and February 3, 2024. Borrowings under the Revolving Credit Facility bear interest at the Adjusted Term SOFR Rate (as defined in the underlying credit agreement) plus 1.125%, subject to adjustment based on (i) our public debt rating and (ii) our leverage ratio. At February 1, 2025, the Revolving Credit Facility bore interest at 5.54%. We pay certain commitment fees in connection with the Revolving Credit Facility. The Revolving Credit Facility allows voluntary repayment of outstanding loans at any time without premium or penalty, other than customary “breakage” costs with respect to Secured Overnight Financing Rate (“SOFR”) loans.
The Revolving Credit Facility contains a number of customary affirmative and negative covenants that, among other things, restrict, subject to certain exceptions, the Company’s ability to incur subsidiary indebtedness, incur liens, sell all or substantially all of our (including our subsidiaries’) assets and consummate certain fundamental changes. The Revolving Credit Facility also contains financial covenants, including a maximum leverage ratio covenant and a minimum fixed charge coverage ratio covenant. As of February 1, 2025, we were in compliance with all applicable covenants.
Long-Term Debt
Senior Notes
The Company’s outstanding senior notes summarized in the table above are unsecured, unsubordinated obligations of the Company, ranking equally in right of payment among themselves and with the Company’s existing and future unsecured and unsubordinated debt. The Company, at its option, may redeem each series of the senior notes at any time, in whole or in part, at
redemption prices set forth in the respective indentures. Additionally, upon certain events, the holders of the notes have the right to require the Company to repurchase all or a portion of their notes at a price of 101% of the principal amount of the notes, plus accrued and unpaid interest. Interest on all outstanding senior notes is payable semiannually.
The senior notes contain covenants that, among other things, limit our ability to incur certain secured debt. As of February 1, 2025, we were in compliance with all applicable covenants.
Maturities of long-term debt are as follows (in millions):

Fiscal Year
 (in millions)
2025 $ 1,000.0 
2026 — 
2027 — 
2028 1,250.0 
2029 — 
Thereafter 1,200.0 
Total $ 3,450.0