Debt |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Aug. 01, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt | 3. Debt Long-term debt, which excludes borrowings on the revolving credit facility, consists of the following secured and unsecured debt:
Our estimated fair value of secured and 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 secured and unsecured senior debt was $1.2 billion at August 1, 2026 and January 31, 2026, and $1.1 billion at August 2, 2025. The interest rate on our 3.375% notes due May 2031 is subject to a coupon adjustment provision within the notes that can cause the interest rate to step up if our long-term debt is downgraded to below a BBB- credit rating by S&P Global Ratings or Baa3 by Moody’s Investor Service, Inc., which has occurred in recent years. In total, the interest rate on the notes due May 2031 has increased 175 basis points since their issuance due to the coupon adjustment provision within the notes. In the second quarter of 2026, we reduced our outstanding debt by $63 million through repurchases of our notes on the open market, resulting in a gain on extinguishment of debt of $6 million recognized in net interest expense. Year to date, we have reduced outstanding debt by $113 million and recognized a $15 million gain on extinguishment of debt in net interest expense. In the fourth quarter of 2025, we reduced our outstanding debt by $87 million through repurchases of our notes on the open market, resulting in a gain on extinguishment of debt of $11 million recognized in net interest expense. In the second quarter of 2025, we issued $360 million aggregate principal amount of 10.000% senior secured notes due 2030 and received proceeds of $357 million, net of the debt discount. The notes are guaranteed by certain of our subsidiaries. Certain of these guarantees are secured by eleven distribution centers and E-commerce Fulfillment Centers, which are held by our subsidiaries, as well as the equity interests in one of our subsidiaries. Also in the second quarter of 2025, $353 million in aggregate principal amount of our 4.25% notes matured and were repaid. Borrowings under the $1.5 billion revolving credit facility, recorded as short-term debt, were $0 as of August 1, 2026 and January 31, 2026 and $75 million as of August 2, 2025. During the second quarter of 2026, we executed an amendment of our revolving credit agreement that extends the maturity of the revolving credit facility by five years to June 30, 2031. Our various debt agreements contain covenants including limitations on additional indebtedness and certain financial tests. As of August 1, 2026, we were in compliance with all covenants of the various debt agreements. |
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