Saks Fifth Avenue 2009 Annual Report Download - page 78

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Table of Contents
SAKS INCORPORATED & SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except per share amounts)
NOTE 6 — DEBT
A summary of long-term debt and capital lease obligations is as follows:
January 30, 2010 January 31, 2009
Carrying
Amount
Fair
Value
Carrying
Amount
(Revised)
Fair
Value
Notes 7.50%, maturing fiscal year 2010 $ 22,859 $ 22,973 $ 45,872 $ 36,698
Notes 9.875%, maturing fiscal year 2011 141,557 148,547 141,557 99,090
Notes 7.00%, maturing fiscal year 2013 2,922 2,674 2,922 1,753
Notes 7.375%, maturing fiscal year 2019 1,911 1,567 1,911 993
Convertible Notes 7.50%, maturing fiscal year 2013, net (1) 100,570 175,896 — —
Convertible Notes 2.00%, maturing fiscal year 2024, net (2) 194,946 192,913 187,703 89,125
Revolving credit facility — — 156,675 156,675
Terminated interest rate swap agreements, net (3) 12 N/A 53 N/A
Capital lease obligations (4) 56,410 N/A 61,083 N/A
Total debt 521,187 544,570 597,776 384,334
Less current portion:
Notes 7.50%, maturing fiscal year 2010 (22,859) (22,973) — —
Capital lease obligations (4) (4,998) N/A (4,673) N/A
Current portion of long-term debt (27,857) (22,973) (4,673) —
Long-term debt $ 493,330 $ 521,597 $ 593,103 $ 384,334
(1) Amount represents the $120,000 convertible notes, net of the unamortized discount of $19,430 as of January 30, 2010.
(2) Amount represents the $230,000 convertible notes, net of the unamortized discount of $35,054 and $42,297, as of January 30, 2010 and January 31, 2009,
respectively.
(3) The fair value of the terminated interest rate swaps is considered immaterial.
(4) Disclosure regarding fair value of capital leases is not required.
The fair values of the long-term debt were estimated based on quotes obtained from financial institutions for those or similar instruments or on the basis of
quoted market prices. For variable rate notes that reprice frequently, such as the Company’s revolving credit agreement, fair value approximates carrying value.
REVOLVING CREDIT AGREEMENT
The Company has a $500,000 revolving credit facility, subject to a borrowing base equal to a specified percentage of eligible inventory and certain credit
card receivables. The facility matures in November 2013. The obligations under the facility are guaranteed by certain of the Company’s existing and future
domestic subsidiaries, and the obligations are secured by the Company’s and the guarantors’ merchandise inventories and certain third party accounts receivable.
Borrowings under the facility bear interest at a per annum rate of either LIBOR plus a percentage ranging from 3.5% to 4.0%, or at the higher of the prime rate
and federal funds rate plus a percentage ranging from 2.5% to 3.0%. Letters of credit are charged a per annum fee equal to the then applicable LIBOR borrowing
spread (for standby letters of credit) or the applicable LIBOR spread minus 0.50%
F-22
Source: SAKS INC, 10-K, March 18, 2010 Powered by Morningstar® Document Research℠