Macy's 2008 Annual Report Download - page 75

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Interest expense is as follows:
2008 2007 2006
(millions)
Interest on debt ............................................................ $621 $617 $563
Amortization of debt premium ................................................ (34) (37) (53)
Amortization of financing costs ...............................................764
Interest on capitalized leases ..................................................546
Gain on early retirement of long-term debt ....................................... – – (54)
599 590 466
Less interest capitalized on construction ......................................... 11 11 15
$588 $579 $451
Future maturities of long-term debt, other than capitalized leases and premium on acquired debt, are shown
below:
(millions)
Fiscal year:
2010 ......................................................... $ 238
2011 ......................................................... 662
2012 ......................................................... 1,663
2013 ......................................................... 138
2014 ......................................................... 508
After 2014 ..................................................... 5,185
On June 23, 2008, the Company issued $650 million aggregate principal amount of 7.875% senior notes due
2015. The net proceeds of the debt issuance were used for the repayment of amounts due on debt maturing in
2008.
On February 10, 2009, the Company, through its wholly owned subsidiary, Macy’s Retail Holdings, Inc.,
completed a cash tender offer pursuant to which it purchased approximately $199 million of its outstanding
6.30% Senior Notes due April 1, 2009 (resulting in approximately $151 million of such notes remaining
outstanding) and approximately $481 million of its outstanding 4.80% Senior Notes due July 15, 2009 (resulting
in approximately $119 million of such notes remaining outstanding) for aggregate consideration, including
accrued and unpaid interest, of approximately $686 million.
The following summarizes certain components of the Company’s debt:
Bank Credit Agreement
The Company is a party to a credit agreement with certain financial institutions providing for revolving
credit borrowings and letters of credit in an aggregate amount not to exceed $2,000 million (which amount may
be increased to $2,500 million at the option of the Company, subject to the willingness of existing or new lenders
to provide commitments for such additional financing) outstanding at any particular time. This credit agreement
is set to expire August 30, 2012.
As of January 31, 2009, and February 2, 2008, there were no revolving credit loans outstanding under the
credit agreement. However, there were $48 million and $32 million of standby letters of credit outstanding at
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