Macy's 2015 Annual Report Download - page 71

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
F-22
Interest expense and premium on early retirement of debt is as follows:
2015 2014 2013
(millions)
Interest on debt ......................................................................................... $ 393 $ 411 $ 407
Amortization of debt premium................................................................. (21)(12)(15)
Amortization of financing costs and debt discount.................................. 6 7 7
Interest on capitalized leases .................................................................... 2 2 2
380 408 401
Less interest capitalized on construction.................................................. 17 13 11
Interest expense ........................................................................................ $ 363 $ 395 $ 390
Premium on early retirement of debt........................................................ $ — $ 17 $ —
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.
Future maturities of long-term debt, other than capitalized leases, are shown below:
(millions)
Fiscal year
2017.......................................................................................................................................................... $ 306
2018.......................................................................................................................................................... 6
2019.......................................................................................................................................................... 41
2020.......................................................................................................................................................... 539
2021.......................................................................................................................................................... 553
After 2021 ................................................................................................................................................ 5,426
During 2015, 2014 and 2013, the Company repaid $69 million, $453 million and $109 million, respectively, of
indebtedness at maturity. On August 17, 2015, the Company redeemed at par the principal amount of $76 million of
8.125% senior debentures due 2035, pursuant to the terms of the debentures. Interest expense in 2015 benefited from the
recognition of unamortized debt premium associated with this debt.
On December 7, 2015, the Company issued $500 million aggregate principal amount of 3.45% senior notes due 2021,
the proceeds of which were used for general corporate purposes.
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.