Ross 2014 Annual Report Download - page 52

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The following table shows scheduled annual principal payments on Long-term debt:
($000)
2015 2016 2017 2018 2019 Thereafter
$ — $ — $ — $ 85,000 $ — $ 315,000
The table below shows the components of interest expense and income for fiscal 2014, 2013, and 2012:
($000) 2014 2013 2012
Interest expense on long-term debt $ 12,990 $ 9,721 $ 9,721
Other interest expense 1,230 1,350 1,665
Capitalized interest (10,825) (10,799) (3,851)
Interest income (411) (519) (628)
Total interest expense (income), net $ 2,984 $ (247) $ 6,907
Revolving credit facility. The Company’s $600 million unsecured revolving credit facility expires in June 2017 and contains
a $300 million sublimit for issuance of standby letters of credit. Interest on this facility is based on LIBOR plus an applicable
margin (currently 100 basis points) and is payable quarterly and upon maturity. As of January 31, 2015 the Company had no
borrowings or standby letters of credit outstanding under this facility and the $600 million credit facility remains in place and
available.
The revolving credit facility is subject to certain financial covenants, including interest coverage and other financial ratios. In
addition, the interest rates under the revolving credit facility may vary depending on actual interest coverage ratios achieved. As
of January 31, 2015, the Company was in compliance with these covenants.
Standby letters of credit and collateral trust. The Company uses standby letters of credit outside of its revolving credit
facility in addition to a funded trust to collateralize its insurance obligations. As of January 31, 2015 and February 1, 2014, the
Company had $19.5 million and $24.3 million, respectively, in standby letters of credit and $56.3 million and $47.2 million,
respectively, in a collateral trust. The standby letters of credit are collateralized by restricted cash and the collateral trust consists
of restricted cash, cash equivalents, and investments.
Trade letters of credit. The Company had $32.8 million and $31.6 million in trade letters of credit outstanding at January 31,
2015 and February 1, 2014, respectively.
Note E: Leases
The Company currently leases all but three of its store locations with original, non-cancelable terms that in general range from
three to ten years. Store leases typically contain provisions for three to four renewal options of five years each. Most store
leases also provide for minimum annual rentals and for payment of certain expenses. In addition, some store leases also have
provisions for additional rent based on a percentage of sales.
The Company leases three warehouses. Two of the warehouses are in Carlisle, Pennsylvania with leases expiring in 2016
and 2017. The third warehouse is in Fort Mill, South Carolina, with a lease expiring in 2019. The leases for the two Carlisle,
Pennsylvania warehouses contain renewal provisions.
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