Staples 2004 Annual Report Download - page 107

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STAPLES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
NOTE E Debt and Credit Agreements
The major components of debt outstanding are as follows (in thousands):
January 29, January 31,
2005 2004
Notes due October 2012 (see below) ......................................... $325,000 $ 325,000
Senior Notes due August 2007 (see below) ..................................... 200,000 200,000
Euro Notes due November 2004 (see below) ................................... — 186,240
Lines of credit (see ‘‘Credit Agreements’’ below) ................................ — 3,191
Capital lease obligations and other notes payable in monthly installments with effective
interest rates from 2% to 5%; collateralized by the related equipment ............... 18,729 12,791
543,729 727,222
Deferred gain on settlement of interest rate swap and fair value adjustments on hedged debt . 15,442 30,361
Less current portion ..................................................... (1,244) (190,150)
Net long-term debt ...................................................... $557,927 $ 567,433
Debt maturing within one year consists of the following (in thousands):
Euro Notes due November 2004 (see below) ................................... $ — $186,240
Current portion of long-term debt ........................................... 1,244 3,910
Total debt maturing within one year .......................................... $ 1,244 $ 190,150
Aggregate annual maturities of long-term debt and capital lease obligations are as follows (in thousands):
Fiscal Year: Total
2005 ............................................................. $ 1,244
2006 ............................................................. 3,070
2007 ............................................................. 202,352
2008 ............................................................. 1,362
2009 ............................................................. 1,253
Thereafter ......................................................... 334,448
$543,729
Future minimum lease payments under capital leases of $9.3 million, excluding $1.0 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 $0.5 million, $1.0 million and $0.9 million during fiscal years 2004, 2003 and
2002, respectively.
Interest paid by Staples totaled $22.5 million, $32.5 million and $17.8 million for fiscal years 2004, 2003 and 2002,
respectively. There was no capitalized interest in fiscal 2004 or fiscal 2002; capitalized interest totaled $0.1 million in
fiscal 2003.
Notes: On September 30, 2002, Staples issued $325 million principal amount of senior notes due October 1, 2012
(the ‘‘Notes’’), with a fixed interest rate of 7.375% payable semi-annually on April 1 and October 1 of each year
commencing on April 1, 2003. Staples has entered into an interest rate swap agreement to turn the Notes into variable
rate obligations (see Note F).
Senior Notes: On August 12, 1997, Staples issued $200 million principal amount of senior notes due August 15,
2007 (the ‘‘Senior Notes’’), 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. Staples has entered into interest rate swap agreements to turn the Senior
Notes into variable rate obligations (see Note F).
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