Debt |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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May 03, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt | 3. Debt Outstanding borrowings under the $1.5 billion revolving credit facility, recorded as short-term debt, were $545 million as of May 3, 2025, $290 million as of February 1, 2025, and $355 million as of May 4, 2024. Long-term debt, which excludes borrowings on the revolving credit facility, consists of the following unsecured debt:
Our estimated fair value of unsecured senior long-term debt is determined using Level 1 inputs, using financial instruments with unadjusted, quoted prices listed on active market exchanges. The estimated fair value of our unsecured senior debt was $1.0 billion at May 3, 2025, $1.2 billion at February 1, 2025, and $1.4 billion at May 4, 2024. In December 2024, S&P downgraded our senior unsecured credit rating from BB to BB- and Moody’s downgraded our rating from Ba3 to B1. As a result of the downgrades, the interest rate on our 3.375% notes due May 2031 increased an additional 50 basis points in May 2025 due to the coupon adjustment provision within the notes. In total, the interest rate on the notes due May 2031 have increased 175 basis points since their issuance. Our various debt agreements contain covenants including limitations on additional indebtedness and certain financial tests. As of May 3, 2025, we were in compliance with all covenants of the various debt agreements. |
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