Macy's 2014 Annual Report Download - page 66

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
F-19
Interest expense and premium on early retirement of debt is as follows:
2014 2013 2012
(millions)
Interest on debt......................................................................................... $ 411 $ 407 $ 449
Amortization of debt premium................................................................. (12)(15)(19)
Amortization of financing costs and debt discount.................................. 7 7 7
Interest on capitalized leases.................................................................... 2 2 3
408 401 440
Less interest capitalized on construction.................................................. 13 11 15
Interest expense........................................................................................ $ 395 $ 390 $ 425
Premium on early retirement of debt........................................................ $ 17 $ — $ 137
On November 14, 2014, the Company provided a notice of redemption related to all of the $407 million of 7.875%
senior notes due 2015, 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 $17 million during 2014. This additional
interest expense is presented as premium on early retirement of debt on the Consolidated Statements of Income.
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, are shown below:
(millions)
Fiscal year
2016.......................................................................................................................................................... $ 642
2017.......................................................................................................................................................... 306
2018.......................................................................................................................................................... 6
2019.......................................................................................................................................................... 41
2020.......................................................................................................................................................... 39
After 2020 ................................................................................................................................................ 6,056
During 2014, 2013 and 2012, the Company repaid $453 million, $109 million and $914 million, respectively, of
indebtedness at maturity.
On November 18, 2014, the Company issued $550 million aggregate principal amount of 4.5% senior notes due
2034. This debt was used to pay for the redemption of the $407 million of 7.875% senior notes due 2015 described above.
On May 23, 2014, the Company issued $500 million aggregate principal amount of 3.625% senior unsecured notes
due 2024, the proceeds of which were used for general corporate purposes.
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.