Express 2010 Annual Report Download - page 58

Download and view the complete annual report

Please find page 58 of the 2010 Express annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 128

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128

The $8.1 million increase in other operating expense, net in 2010 compared to 2009 was driven by the $10.0
million fee paid to Golden Gate and $3.3 million fee paid to Limited Brands to terminate the Advisory
Agreement and the LLC Agreement, respectively, upon completion of our IPO on May 18, 2010. This increase
was partially offset by the elimination of the advisory fees in the third and fourth quarter of 2010, which were
previously incurred under the Advisory Agreement and the LLC Agreement. Fees under both the Advisory
Agreement and the LLC Agreement were incurred during all of 2009.
The $3.9 million increase in other operating expense, net in 2009 compared to 2008 relates primarily to changes
in advisory fees to both Golden Gate and Limited Brands, which were calculated as a percentage of Adjusted
EBITDA.
Interest Expense
The following table shows interest expense in dollars for the stated periods:
Year Ended
2010 2009 2008
(in thousands)
Interest expense ................................. $59,493 $53,222 $36,531
The $6.3 million increase in interest expense in 2010 compared to 2009 resulted primarily from the $20.8 million
loss on extinguishment of debt associated with the early repayments of the Term C Loan and Term B Loan in the
first quarter of 2010 and second quarter of 2010, respectively, partially offset by $14.3 million lower interest
expense on the Senior Notes at an interest rate of 8
3
⁄
4
% versus the Term C and Term B Loans at an interest rate
of 14.5% and 13.5%, respectively.
The $16.7 million increase in interest expense in 2009 compared to 2008 resulted primarily from entering into
the $300.0 million Topco credit facility on June 26, 2008, and therefore interest expense for 2008 only reflects
thirty-one weeks of interest relating to this facility. This was offset by lower interest expense of $3.0 million
related to our Opco term loan, which had a lower interest rate during 2009 and accrued interest on a lower
outstanding principal balance.
Interest Income
The following table shows interest income in dollars for the stated periods:
Year Ended
2010 2009 2008
(in thousands)
Interest income ....................................... $(16) $(484) $(3,527)
The $3.0 million decrease in interest income in 2009 compared to 2008 resulted primarily from a reduction in
interest rates on investments in overnight treasury securities.
Other Income, Net
The following table shows other income, net in dollars for the stated periods:
Year Ended
2010 2009 2008
(in thousands)
Other income, net .................................. $(1,968) $(2,444) $(300)
Other income, net for all years presented primarily includes the change in the fair market value of our interest
rate swap, which was entered into in July 6, 2007 and expired on August 6, 2010.
42