Macy's 2013 Annual Report Download - page 65

Table of Contents
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Interest expense and premium on early retirement of debt is as follows:
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


Interest on debt $407
$449
$ 467
Amortization of debt premium (15)
(19)
(23)
Amortization of financing costs 7
7
8
Interest on capitalized leases 2
3
3
401
440
455
Less interest capitalized on construction 11
15
8
Interest expense $390
$ 425
$447
Premium on early retirement of debt $ —
$137
$ —
On November 28, 2012, the Company repurchased $700 million aggregate principal amount of its outstanding senior unsecured notes, which had a net
book value of $706 million. The repurchased senior unsecured notes had stated interest rates ranging from 5.9% to 7.875% and maturities in 2015 and
2016. The Company recorded the redemption premium and other costs related to these repurchases as additional interest expense of $133 million in 2012. On
March 29, 2012, the Company redeemed the $173 million of 8.0% senior debentures due July 15, 2012, as allowed under the terms of the indenture. The
price for the redemption was calculated pursuant to the indenture and resulted in the recognition of additional interest expense of $4 million in 2012. The
additional interest expense resulting from these transactions is presented as premium on early retirement of debt on the Consolidated Statements of Income.
Future maturities of long-term debt, other than capitalized leases and premium on acquired debt, are shown below:
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Fiscal year
2015 $ 481
2016 642
2017 306
2018 6
2019 41
After 2019 5,046
During 2013, 2012 and 2011, the Company repaid $109 million, $914 million and $439 million, respectively, of indebtedness at maturity.
On September 6, 2013, the Company issued $400 million aggregate principal amount of 4.375% senior notes due 2023, the proceeds of which were used
for general corporate purposes.
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 were used to retire indebtedness that matured during the first half of 2012.
On November 20, 2012, the Company issued $750 million aggregate principal amount of 2.875% senior unsecured notes due 2023 and $250 million
aggregate principal amount of 4.3% senior unsecured notes due 2043. This debt was used to pay for the notes repurchased on November 28, 2012 described
above, and to retire $298 million of 5.875% senior unsecured notes that matured in January 2013.
F-19