Staples 2014 Annual Report Download - page 151

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APPENDIX C
STAPLES C-19
STAPLES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements (continued)
NOTE E — ACCRUED EXPENSES AND OTHER CURRENT
LIABILITIES
The major components of Accrued expenses and other current liabilities are as follows (in thousands):
January 31, 2015 February 1, 2014
Taxes $237,454 $232,676
Employee related 416,215 321,736
Acquisition and restructuring reserves 122,759 100,425
Advertising and marketing 96,075 109,213
Other 459,805 502,924
Total $1,332,308 $1,266,974
NOTE F — DEBT AND CREDIT AGREEMENTS
The major components of the Company’s outstanding debt are as follows (in thousands):
January 31, 2015 February 1, 2014
January 2018 Notes 499,192 498,919
January 2023 Notes 499,236 499,140
Other lines of credit 77,214 100,100
Capital lease obligations and other notes payable 40,073 6,028
1,115,715 1,104,187
Less: current portion (91,718) (103,982)
Net long-term debt $1,023,997 $1,000,205
Aggregate annual maturities of long-term debt and capital lease obligations are as follows (in thousands):
Fiscal Year: Total
2015 $91,718
2016 10,629
2017 509,192
2018 5,124
2019 263
Thereafter 500,361
$1,117,287
Unamortized discounts on January 2018 Notes and January 2023 Notes (1,572)
$1,115,715
Future minimum lease payments under capital leases of $34.6
million are included in aggregate annual maturities shown
above. Staples entered into $39.8 million of new capital lease
obligations in 2014. Staples did not incur any new capital lease
obligations in 2013.
Interest paid by Staples totaled $50.5 million, $128.0 million
and $171.6 million for 2014, 2013 and 2012, respectively.
There was no interest capitalized in 2014, 2013 and 2012.
January 2018 Notes and January 2023 Notes: In January
2013, the Company issued $500 million aggregate principal
amount of 2.75% senior notes due January 2018 (the “January
2018 Notes”) and $500 million aggregate principal amount of
4.375% senior notes due January 2023 (the “January 2023
Notes”, or collectively “the Notes”), for total net proceeds
after the original issue discount and the underwriters’ fees of
$991.4 million. The Notes were issued with original discounts
at 99.727% and 99.808%, respectively. The Notes rank equally
with all of the Company’s other unsecured and unsubordinated
indebtedness. The indenture governing the notes contains
covenants that will limit the Company’s ability to create certain
liens and engage in certain sale and leaseback transactions.
The indenture does not limit the amount of debt that the
Company or any of the Company’s subsidiaries may incur.
Interest on these Notes is payable in cash on a semi-annual
basis on January 12 and July 12 of each year. The interest
rate payable on the Notes will be subject to adjustments from
time to time if Moody’s Investors Service, Inc. or Standard &
Poor’s Ratings Services downgrades (or downgrades and