The Company has a Master Accounts Receivable Purchase Agreement ("MARPA Facility"), for the sale of up to a maximum amount of $300 million of certain designated eligible receivables with the U.S. government. The receivables sold under the MARPA Facility are without recourse for any U.S. government credit risk. The MARPA Facility automatically renews each year unless one of the parties gives prior notice to terminate.

The receivable transfers under the MARPA Facility have been recognized as sales, as the receivables had been legally isolated from the Company, the financial institution had a right to pledge or exchange the assets received and we do not maintain effective control over the transferred receivables. The fair value of the sold receivables approximated their book value due to their short-term nature.

The Company does not retain an ongoing financial interest in the transferred receivables other than cash collection and administrative services. The Company estimated that its servicing fee was at fair value and therefore has not recognized a servicing asset or liability as of January 30, 2026 and January 31, 2025. Proceeds from the sale of receivables are reflected as cash flows from operating activities on the consolidated statements of cash flows.

During fiscal 2026, 2025 and 2024, the Company incurred purchase discount fees of $12 million, $14 million and $9 million, respectively, which are presented in "Other (income) expense, net" on the consolidated statements of income.


	Year Ended
	January 30, 2026		January 31, 2025
	(in millions)
Beginning balance	$	164	$	205
Sale of receivables	4,076		4,324
Cash collections	(4,076)		(4,365)
Outstanding balance sold(1)	164		164
Cash collected, not remitted(2)	(26)		(49)
Remaining sold receivables to be collected from customers(3)	$	138	$	115

(1) For fiscal 2026, there was no net impact to cash flows from operating activities from sold receivables. For fiscal 2025, the Company recorded a net decrease of $41 million to cash flows from operating activities from sold receivables.

(2) Primarily represents the cash collected on behalf of but not yet remitted as of January 30, 2026 and January 31, 2025. This balance is included in "Accounts payable" on the consolidated balance sheets.

(3) Remaining sold receivables balance is included in "Receivables, net" on the consolidated balance sheets.