Express 2014 Annual Report Download - page 63

The Company recognizes accrued interest and penalties related to unrecognized tax benefits as a component of
income tax expense. The total amount of net interest in tax expense related to interest and penalties included in
the consolidated statements of comprehensive income for 2014, 2013, and 2012 was immaterial. As of
January 31, 2015 and February 1, 2014, the Company had accrued interest of $0.1 million and $0.2 million,
respectively.
The Company is subject to examination by the IRS for years subsequent to 2012. The Company is also generally
subject to various U.S. state and local income tax and non-U.S. tax jurisdictions for the years subsequent to 2010.
Over the next twelve months, it is reasonably possible that the resolution of state tax examinations could reduce
the Company’s unrecognized tax benefits by $0.1 million. Final settlement of these audits may result in payments
that are more or less than this amount, but the Company does not anticipate the resolution of these matters will
result in a material change to its consolidated financial position or results of operations.
The Company’s Canadian subsidiary has an accumulated deficit, thus we have not provided for income taxes in
the United States on undistributed earnings.
8. Debt
Borrowings outstanding consisted of the following:
January 31, 2015 February 1, 2014
(in thousands)
8
3
⁄ 4 % Senior Notes ...................... $200,850 $200,850
Debt discount on Senior Notes ............. (1,323) (1,680)
Total long-term debt ................. $199,527 $199,170
Revolving Credit Facility
On July 29, 2011, Express Holding, a wholly-owned subsidiary, and its subsidiaries entered into an Amended
and Restated $200.0 million secured Asset-Based Credit Facility (“Revolving Credit Facility”). As of January 31,
2015, there were no borrowings outstanding and approximately $197.5 million available under the Revolving
Credit Facility.
The Revolving Credit Facility is scheduled to expire on July 29, 2016 and allows for up to $30.0 million of swing
line advances and up to $45.0 million to be available in the form of letters of credit. Borrowings under the
Revolving Credit Facility bear interest at a rate equal to either the rate appearing on Bloomberg L.P.’s Page
BBAM1/(Official BBA USD Dollar Libor Fixings) (the “Eurodollar Rate”) plus an applicable margin rate or the
highest of (1) the prime lending rate, (2) 0.50% per annum above the federal funds rate, and (3) 1% above the
Eurodollar Rate, in each case plus an applicable margin rate. The applicable margin rate is determined based on
excess availability as determined by reference to the borrowing base. The applicable margin for Eurodollar Rate-
based advances is between 1.50% and 2.00% based on the borrowing base. The unused line fee payable under the
Revolving Credit Facility is incurred at 0.375% per annum of the average daily unused revolving commitment
during each quarter, payable quarterly in arrears on the first day of each May, August, November, and February.
In the event that (1) an event of default has occurred or (2) excess availability plus eligible cash collateral is less
than 12.5% of the borrowing base for 5 consecutive days, such unused line fees are payable on the first day of
each month.
Interest payments under the Revolving Credit Facility are due quarterly on the first day of each May, August,
November, and February for base rate-based advances, provided, however, in the event that (1) an event of
default has occurred or (2) excess availability plus eligible cash collateral is less than 12.5% of the borrowing
base for 5 consecutive days, interest payments are due on the first day of each month. Interest payments under
59