v3.26.1
Debt
 3 Months Ended
May 31, 2026
Debt Disclosure [Abstract]  
Debt Debt
(In thousands)As of May 31As of February 28
Debt Description (1)
Maturity Date20262026
Revolving credit facility (2)
June 2028$893,000 $840,800 
Term loan (2)
November 2030499,309 499,271 
4.17% Senior notesApril 2026— 200,000 
4.27% Senior notesApril 2028200,000 200,000 
Financing obligationsVarious dates through February 2059486,325 483,633 
Non-recourse notes payableVarious dates through April 203316,082,391 15,827,609 
Total debt18,161,025 18,051,313 
Less: current portion(571,315)(761,974)
Less: unamortized debt issuance costs(28,734)(28,792)
Long-term debt, net$17,560,976 $17,260,547 

(1)    Interest is payable monthly, with the exception of our senior notes, which are payable semi-annually.
(2)    Borrowings accrue interest at variable rates based on SOFR, the federal funds rate, or the prime rate, depending on the type of borrowing.

Revolving Credit Facility. Borrowings under our $2.00 billion unsecured revolving credit facility (the “credit facility”) are available for working capital and general corporate purposes.  We pay a commitment fee on the unused portions of the available funds. Borrowings under the credit facility are either due “on demand” or at maturity depending on the type of borrowing.  Borrowings with “on demand” repayment terms are presented as short-term debt while amounts due at maturity are presented as long-term debt.  As of May 31, 2026, the unused capacity of $1.11 billion was fully available to us.
Term Loan. Borrowings under the $500 million term loan are available for working capital and general corporate purposes. The interest rate on our term loan was 4.53% as of May 31, 2026. The term loan was classified as long-term debt as no repayments are scheduled to be made within the next 12 months.
On June 15, 2026, we entered into a new term loan agreement for an aggregate principal amount of $500 million, which will mature on June 15, 2029. The proceeds from the term loan were used to pay down normal course borrowings under our $2.00 billion credit facility and for other working capital and general corporate purposes.
Senior Notes. The 4.17% senior notes matured during the first quarter of fiscal 2027. Borrowings under our unsecured senior notes totaling $200 million are available for working capital and general corporate purposes. As of May 31, 2026, all notes were classified as long-term debt as no repayments are scheduled to be made within the next 12 months.
Financing Obligations.  Financing obligations relate to stores subject to sale-leaseback transactions that do not qualify for sale accounting.  The financing obligations were structured at varying interest rates and generally have initial lease terms ranging from 15 to 20 years with payments made monthly.  We have not entered into any new sale-leaseback transactions since fiscal 2009. In the event the agreements are modified or extended beyond their original term, the related obligation is adjusted based on the present value of the revised future payments, with a corresponding change to the assets subject to these transactions. Upon modification, the amortization of the obligation is reset, resulting in more of the payments being applied to interest expense in the initial years following the modification.  
Non-Recourse Notes Payable.  The non-recourse notes payable relate to auto loans held for investment and auto loans held for sale funded through non-recourse funding vehicles.  The timing of principal payments on the non-recourse notes payable is based on the timing of principal collections and defaults on the related auto loans. The current portion of non-recourse notes payable represents principal payments that are due to be distributed in the following period. 
Notes payable related to our asset-backed term funding transactions accrue interest predominantly at fixed rates and have scheduled maturities through April 2033, but may mature earlier, depending upon the repayment rate of the underlying auto loans.
Information on our funding vehicles of non-recourse notes payable as of May 31, 2026 are as follows:
(In billions)Capacity
Warehouse facilities:
September 2026 expiration$2.55 
March 2027 expiration3.10 
May 2027 expiration0.70 
Combined warehouse facility limit$6.35 
Unused capacity$3.24 
Non-recourse notes payable outstanding:
Warehouse facilities$3.11 
Asset-backed term funding transactions12.97 
Non-recourse notes payable$16.08 

We generally enter into warehouse facility agreements for one-year terms and typically renew the agreements annually. The return requirements of warehouse facility investors could fluctuate significantly depending on market conditions.  At renewal, the cost, structure and capacity of the facilities could change.  These changes could have a significant impact on our funding costs.
See Note 4 for additional information on the related auto loans held for investment.
Capitalized Interest.  We capitalize interest in connection with the construction of certain facilities.  For the three months ended May 31, 2026 and 2025, we capitalized interest of $3.6 million and $4.0 million, respectively. 
Financial Covenants.  The credit facility, term loan and senior note agreements contain representations and warranties, conditions and covenants.  We must also meet financial covenants in conjunction with certain financing obligations.  The agreements governing our non-recourse funding vehicles contain representations and warranties, as well as financial covenants and performance triggers related to events of default.  As of May 31, 2026, we were in compliance with these financial covenants and our non-recourse funding vehicles were in compliance with these performance triggers.