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

Financing

v3.25.1
Financing
 12 Months Ended
Feb. 01, 2025
Debt Disclosure [Abstract]  
Financing Financing
The Company's debt is as follows:
February 1,
2025		 February 3,
2024
(millions)
Short-term debt:
7.60% Senior debentures due 2025
 $ 6  $ — 
$ 6  $ — 
Long-term debt:    
7.60% Senior debentures due 2025
 $ —  $ 6 
6.79% Senior debentures due 2027
 61  71 
6.70% Senior debentures due 2028
 28  29 
7.00% Senior debentures due 2028
 94  105 
6.70% Senior exchanged debentures due 2028
 54  73 
8.75% Senior exchanged debentures due 2029
 13  13 
6.90% Senior debentures due 2029
 72  79 
5.875% Senior notes due 2029
 326  500 
5.875% Senior notes due 2030
 425  425 
7.875% Senior exchanged debentures due 2030
 5  5 
7.875% Senior debentures due 2030
 5  5 
6.90% Senior debentures due 2032
 12  12 
6.125% Senior notes due 2032
 425  425 
6.90% Senior exchanged debentures due 2032
 1  1 
4.50% Senior notes due 2034
 367  367 
6.70% Senior exchanged debentures due 2034
 181  181 
6.70% Senior debentures due 2034
 18  18 
6.375% Senior notes due 2037
 192  192 
5.125% Senior notes due 2042
 250  250 
4.30% Senior notes due 2043
 250  250 
Unamortized debt issue costs and discount (20) (25)
Premium on acquired debt, using an effective interest yield of 6.021% to 7.654%
 14 16
$ 2,773  $ 2,998 
Interest expense and losses on early retirement of debt are as follows:
2024 2023 2022
(millions)
Interest on debt $ 178  $ 187  $ 185 
Amortization of debt premium (2) (2) (2)
Amortization of financing costs and debt discount 12  12  13 
Interest on finance leases 1  1  1 
188  198  197 
Less interest capitalized on construction 30  28  22 
Interest expense $ 158  $ 170  $ 175 
Losses on early retirement of debt $ 1  $ —  $ 31 
Debt Obligations
ABL Credit Facility
On March 3, 2022, the Company entered into a third amendment to the ABL Credit Facility which provides for a new Revolving Credit Facility of $3.0 billion (the New ABL Credit Facility). Amounts borrowed under the New ABL Credit Facility are subject to interest at a rate per annum equal to, at the ABL Borrower's option, either (i) adjusted SOFR (calculated to include a 0.10% credit adjustment spread) plus a margin of 1.25% to 1.50% or (ii) a base rate plus a margin of 0.25% to 0.50%, in each case depending on revolving line utilization. The New ABL Credit Facility matures in March 2027. The Company borrowed and repaid $301 million and $961 million of debt under its revolving credit facility during 2024 and 2023, respectively. As of February 1, 2025 and February 3, 2024, there were no outstanding borrowings under the agreement.
Bank Credit Agreement
On March 22, 2023, the Company amended its existing credit agreement, which extended the term of the credit agreement to expire in March 2027, subject to up to two one-year extensions that could be requested by the Company and agreed to by the lenders. The agreement provides for revolving credit borrowings and letters of credit in an aggregate amount not to exceed $1 million. The unsecured revolving credit facility contains covenants that provide for, among other things, limitations on fundamental changes, use of proceeds, and maintenance of property, as well as customary representations and warranties and events of default. As of February 1, 2025 and February 3, 2024, there were no revolving credit loans outstanding under the credit agreement.
Senior Notes and Debentures
The senior notes and the senior debentures are unsecured obligations of a 100%-owned subsidiary of Macy's, Inc. and Macy's Inc. has fully and unconditionally guaranteed these obligations.
Other Financing Arrangements
There were $144 million and $148 million of other standby letters of credit outstanding as of February 1, 2025 and February 3, 2024, respectively.
2024 Debt Financing Activities
On September 18, 2024, Macy’s Retail Holdings, LLC (“MRH”), a direct, wholly owned subsidiary of Macy’s, Inc., completed a tender offer in which $221 million aggregate principal amount of certain senior notes and debentures were tendered for early settlement and purchased by MRH. The total cash cost for the tender offer was $225 million and was funded using cash on hand. The Company recognized $1 million of losses on early retirement of debt on the Consolidated Statements of Income during the third quarter of 2024.
2023 Debt Financing Activities
Other than borrowings under the ABL Credit Facility, the Company did not engage in other material debt financing activities during fiscal 2023.
Long-Term Debt Maturities
Future maturities of long-term debt are shown below:
(millions)
Fiscal year
2025 $ 6 
2026 — 
2027 61 
2028 176 
2029 411 
After 2029 2,131 
Debt Repayments
The following table shows the detail of debt repayments:
2024 2023 2022
(millions)
Revolving credit facility $ 301  $ 961  $ 1,959 
2.875% Senior notes due 2023
 —  —  504 
3.625% Senior notes due 2024
 —  —  350 
4.375% Senior notes due 2023
 —  —  161 
6.65% Senior debentures due 2024
 —  —  81 
6.65% Debentures due 2024
 —  —  36 
6.90% Senior debentures due 2032
 —  —  4 
6.70% Senior debentures due 2034
 —  —  2 
6.70% Senior debentures due 2028
 —  —  1 
5.875% Senior notes due 2029
 174  —  — 
6.70% Senior exchanged debentures due 2028
 19  —  — 
6.79% Senior debentures due 2027
 10  —  — 
7.0% Senior debentures due 2028
 10  —  — 
6.9% Senior debentures due 2029
 7  —  — 
6.7% Senior debentures due 2028
 1  —  — 
$ 522  $ 961  $ 3,098