Macy's 2010 Annual Report Download - page 70

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Interest expense is as follows:
2010 2009 2008
(millions)
Interest on debt ............................................................ $535 $587 $621
Premium on early retirement of long-term debt ................................... 66 – –
Amortization of debt premium ................................................ (31) (33) (34)
Amortization of financing costs ............................................... 11 10 7
Interest on capitalized leases ..................................................335
584 567 599
Less interest capitalized on construction ......................................... 5 5 11
$579 $562 $588
Future maturities of long-term debt, other than capitalized leases and premium on acquired debt, are shown
below:
(millions)
Fiscal year:
2012 ......................................................... $1,098
2013 ......................................................... 121
2014 ......................................................... 461
2015 ......................................................... 718
2016 ......................................................... 1,105
After 2016 ..................................................... 3,199
During 2010, consistent with its strategy to reduce indebtedness, the Company used approximately $1,067
million of cash to repurchase approximately $1,000 million of indebtedness prior to maturity. In connection with
these repurchases, the Company recognized additional interest expense of approximately $66 million in 2010 due
to the expenses associated with the early retirement of this debt.
In 2009, the Company completed a cash tender offer pursuant to which it purchased approximately $680
million of its outstanding debt for aggregate consideration, including accrued and unpaid interest, of
approximately $686 million.
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.
F-22