Foot Locker 2014 Annual Report Download - page 75

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FOOT LOCKER, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
13. Long-Term Debt and Obligations Under Capital Leases
2014 2013
(in millions)
8.5% debentures payable 2022 $118 $118
Unamortized gain related to interest rate swaps
(1)
12 13
Obligations under capital leases 48
$134 $139
Less: current portion of obligations under capital leases 23
$132 $136
(1) In 2009, the Company terminated an interest rate swap at a gain. This gain is being amortized as part of interest expense over the
remaining term of the debt using the effective-yield method.
Interest expense related to long-term debt and the amortization of the associated debt issuance costs, was
$9 million for all years presented.
Maturities of long-term debt and minimum rent payments under capital leases in future periods are:
Long-Term
Debt Capital
Leases Total
(in millions)
2015 $— $2 $ 2
2016 —1 1
2017 —1 1
2018 − 2019 — — —
Thereafter 118 — 118
$118 $ 4 $122
Less: Imputed interest — — —
Current portion — 2 2
$118 $ 2 $120
14. Other Liabilities
2014 2013
(in millions)
Straight-line rent liability $124 $116
Pension benefits 46 25
Income taxes 24 27
Postretirement benefits 18 14
Deferred taxes 14 18
Workers’ compensation and general liability reserves 99
Other 18 20
$253 $229
15. Leases
The Company is obligated under operating leases for almost all of its store properties. Some of the store leases
contain renewal options with varying terms and conditions. Management expects that in the normal course of
business, expiring leases will generally be renewed or, upon making a decision to relocate, replaced by leases
on other premises. Operating lease periods generally range from 5 to 10 years. Certain leases provide for
additional rent payments based on a percentage of store sales.
52