Sears 2015 Annual Report Download - page 72

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At January€30, 2016, long-term debt maturities for the next five years and thereafter were as follows:
millions
2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $71
2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97
2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,290
2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 640
2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Thereafter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 327
Total maturities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,436
Unamortized debt discount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (245)
Unamortized debt issuance costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(12)
Long-term debt, net of discount & debt issuance costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,179
Interest
Interest expense for years 2015, 2014 and 2013 was as follows:
millions 2015 2014 2013
COMPONENTS OF INTEREST EXPENSE
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $223 $238 $193
Amortization of debt issuance costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 33 21
Amortization of debt discount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 5 —
Accretion of self-insurance obligations at net present value . . . . . . . . . . . . . . . . . . . . . . 19 22 24
Accretion of lease obligations at net present value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 15 16
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $323 $313 $254
Debt Repurchase Authorization
During the second quarter of 2015, the Board of Directors authorized the repurchase, subject to market
conditions and other factors, of up to $1.0 billion of our outstanding indebtedness in open market or privately
negotiated transactions, superseding the previously disclosed debt repurchase authorization from 2005.
On August 3, 2015, the Company commenced a tender offer (the "Offer") to purchase for cash up to $1.0
billion€principal amount of its outstanding 6 5/8% Senior Secured Notes Due 2018 (the "Senior Secured Notes"),
which expired on August 28, 2015. Approximately $936 million principal amount of the Senior Secured Notes were
validly tendered and not validly withdrawn in the Offer, including $165 million by ESL, $110 million by the
Company's domestic pension plan, and $207 million by Fairholme and its affiliates. Holders who validly tendered
and did not validly withdraw Senior Secured Notes at or prior to the early tender date of August 14, 2015 received
total consideration of $990 per $1,000 principal amount of Senior Secured Notes that were accepted for purchase,
which included an early tender payment of $30 per $1,000 principal amount of Senior Secured Notes accepted for
purchase, plus accrued and unpaid interest up to, but excluding, the settlement date. Holders who validly tendered
and did not validly withdraw Senior Secured Notes after the early tender date but at or prior to the expiration date of
August 28, 2015 received total consideration of $960 per $1,000 principal amount of Senior Secured Notes accepted
for purchase, plus accrued and unpaid interest up to, but excluding, the settlement date.
We accounted for the Offer in accordance with accounting standards applicable to extinguishment of liabilities
and debt modifications and extinguishments. Accordingly, we de-recognized the net carrying amount of Senior
Secured Notes of $929 million (comprised of the principal amount of $936 million, offset by unamortized debt
issuance costs and discount of $7 million), and the reacquisition cost was $929 million.
SEARS HOLDINGS CORPORATION
Notes to Consolidated Financial Statements—(Continued)
72