Macy's 2012 Annual Report Download - page 67

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
F-20
The following table shows the detail of debt repayments:
2012 2011 2010
(millions)
5.35% Senior notes due 2012.......................................................................... $ 616 $ — $ 484
5.90% Senior notes due 2016.......................................................................... 400 — 123
5.875% Senior notes due 2013........................................................................ 298 — 52
7.875% Senior notes due 2015........................................................................ 205 — 38
8.0% Senior debentures due 2012................................................................... 173 — 27
7.45% Senior debentures due 2016................................................................. 64 — 2
7.5% Senior debentures due 2015................................................................... 31 — —
6.625% Senior notes due 2011........................................................................ — 330 170
7.45% Senior debentures due 2011................................................................. — 109 41
10.625% Senior debentures due 2010............................................................. — — 150
8.5% Senior notes due 2010............................................................................ — — 76
5.75% Senior notes due 2014.......................................................................... — — 47
7.625% Senior debentures due 2013............................................................... — — 16
9.5% amortizing debentures due 2021............................................................ 4 4 4
9.75% amortizing debentures due 2021.......................................................... 2 2 2
Capital leases and other obligations................................................................ 10 9 13
$ 1,803 $ 454 $ 1,245
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 $1,500 million (which amount may be increased to $1,750 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. The credit agreement is set to expire June 20, 2015.
As of February 2, 2013, and January 28, 2012, there were no revolving credit loans outstanding under these credit
agreements, and there were no borrowings under these agreements throughout all of 2012 and 2011. However, there were less
than $1 million of standby letters of credit outstanding at February 2, 2013 and January 28, 2012. Revolving loans under the
credit agreement bear interest based on various published rates.
This agreement, which is an obligation of a 100%-owned subsidiary of Macy’s, Inc. (“Parent”), is not secured. However,
Parent has fully and unconditionally guaranteed this obligation, subject to specified limitations.The Company’s interest
coverage ratio for 2012 was 8.41 and its leverage ratio at February 2, 2013 was 1.81, in each case as calculated in accordance
with the credit agreement. The credit agreement requires the Company to maintain a specified interest coverage ratio for the
latest four quarters of no less than 3.25 and a specified leverage ratio as of and for the latest four quarters of no more than 3.75.
The interest coverage ratio is defined as EBITDA (earnings before interest, taxes, depreciation and amortization) over net
interest expense and the leverage ratio is defined as debt over EBITDA. For purposes of these calculations EBITDA is
calculated as net income plus interest expense, taxes, depreciation, amortization, non-cash impairment of goodwill, intangibles
and real estate, non-recurring cash charges not to exceed in the aggregate $400 million and extraordinary losses less interest
income and non-recurring or extraordinary gains. Debt is adjusted to exclude the premium on acquired debt and net interest is
adjusted to exclude the amortization of premium on acquired debt and premium on early retirement of debt.