Staples 2003 Annual Report Download - page 79

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STAPLES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
NOTE F Debt and Credit Agreements
The major components of debt outstanding as of February 1, 2003 and February 2, 2002 are as follows (in
thousands):
February 1, February 2,
2003 2002
Senior Notes due August 2007 (see below) ..................................... $200,000 $200,000
Notes due October 2012 (see below) ......................................... 325,000
Lines of credit (see ‘‘Credit Agreements’’ below) ................................. — 2,832
364-Day Term Loan (see ‘‘Credit Agreements’’ below) ............................. 325,000
Euro Notes (see below) ................................................... 162,225 128,790
Capital lease obligations and other notes payable in monthly installments with effective
interest rates from 4% to 12%; collateralized by the related equipment ............... 14,892 6,738
1,027,117 338,360
Deferred gain on settlement of interest rate swap and fair value adjustments on hedged debt . . . 32,595 16,848
Less current portion ..................................................... (327,671) (4,983)
Net long-term debt ...................................................... $732,041 $350,225
Debt maturing within one year consists of the following (in thousands):
364-Day Term Loan (see ‘‘Credit Agreements’’ below) ............................. $325,000 $ —
Current portion of long-term debt ........................................... 2,671 4,983
Total debt maturing within one year .......................................... $327,671 $ 4,983
Aggregate annual maturities of long-term debt and capital lease obligations are as follows (in thousands):
Fiscal Year: Total
2003 ............................................................ $ 327,671
2004 ............................................................ 165,247
2005 ............................................................ 1,678
2006 ............................................................ 1,577
2007 ............................................................ 201,323
Thereafter ....................................................... 329,621
$1,027,117
Future minimum lease payments under capital leases of $11.8 million, excluding $1.9 million of interest, are
included in aggregate annual maturities shown above. In addition to capital leases assumed through acquisitions, Staples
entered into new capital lease agreements totaling $0.9 million, $3.7 million and $1.4 million during fiscal years 2002,
2001 and 2000, respectively.
Interest paid by Staples totaled $17.8 million, $32.8 million and $40.5 million for fiscal years 2002, 2001 and 2000,
respectively. There was no capitalized interest in fiscal 2002 and capitalized interest totaled $1.0 million and $0.4 million
in fiscal years 2001 and 2000, respectively.
Senior Notes: Staples issued $200 million of senior notes (the ‘‘Senior Notes’’) on August 12, 1997, with a fixed
interest rate of 7.125% payable semi-annually on February 15 and August 15 of each year commencing on February 15,
1998. The Senior Notes are due August 15, 2007. Staples has entered into interest rate swaps to turn the Senior Notes
into variable rate obligations (see Note G).
Notes: On September 30, 2002, Staples completed an offering of $325 million principal amount of 7.375% senior
notes due October 2012 (the ‘‘Notes’’). The Notes were sold in a private placement to qualified institutional investors
C-16