Macy's 2011 Annual Report Download - page 58

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
F-18
Interest expense is as follows:
2011 2010 2009
(millions)
Interest on debt................................................................................................ $ 467 $ 535 $ 587
Premium on early retirement of long-term debt.............................................. — 66 —
Amortization of debt premium........................................................................ (23)(31)(33)
Amortization of financing costs...................................................................... 8 11 10
Interest on capitalized leases........................................................................... 3 3 3
455 584 567
Less interest capitalized on construction ........................................................ 8 5 5
$ 447 $ 579 $ 562
Future maturities of long-term debt, other than capitalized leases and premium on acquired debt, are shown below:
(millions)
Fiscal year:
2013.................................................................................................................................... $ 121
2014.................................................................................................................................... 461
2015.................................................................................................................................... 718
2016.................................................................................................................................... 1,105
2017.................................................................................................................................... 306
After 2017 .......................................................................................................................... 3,693
During 2011, 2010 and 2009, the Company repaid $439 million, $226 million and $270 million, respectively, of
indebtedness at maturity.
On January 10, 2012, the Company issued $550 million aggregate principal amount of 3.875% senior notes due 2022 and
$250 million aggregate principal amount of 5.125% senior notes due 2042, the proceeds of which will be used to retire
indebtedness maturing during the first half of 2012.
On February 27, 2012, the Company notified holders of the $173 million of 8.0% senior debentures due July 15, 2012 of
the Company's intent to redeem the debentures on March 29, 2012, as allowed under the terms of the indenture. The price for
the redemption is calculated pursuant to the indenture and will result in the recognition of additional interest expense of
approximately $4 million. By redeeming this debt early, the Company will save approximately $4 million of interest expense
during 2012. In addition, the Company repaid $616 million of 5.35% senior notes due March 15, 2012 at maturity.
During 2010, 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 scheduled to mature in 2009 for aggregate consideration, including accrued and unpaid interest, of
approximately $686 million.