Staples 2007 Annual Report Download - page 120

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STAPLES, INC. AND SUBSIDIARIES
Notes To Consolidated Financial Statements (Continued)
NOTE D Debt and Credit Agreements
The major components of debt outstanding are as follows (in thousands):
February 2, February 3,
2008 2007
Notes due October 2012 (see below) ......................................... $325,000 $ 325,000
Senior Notes due August 2007 (see below) ..................................... — 200,000
Lines of credit (see ‘‘Credit Agreements’’ below) ................................. — 229
Capital lease obligations and other notes payable in monthly installments with effective
interest rates from 2% to 5%; collateralized by the related equipment ................ 31,670 22,461
356,670 547,690
Deferred gain (loss) on settlement of interest rate swap and fair value adjustments on hedged
debt ............................................................... 9,305 (16,060)
Less current portion ..................................................... (23,806) (215,165)
Net long-term debt ...................................................... $342,169 $ 316,465
Debt maturing within one year consists of the following (in thousands):
Current portion of long-term debt ........................................... $ 23,806 $ 215,874
Fair value adjustments on hedged debt ........................................ — (709)
Total debt maturing within one year .......................................... $ 23,806 $ 215,165
Aggregate annual maturities of long-term debt and capital lease obligations are as follows (in thousands):
Fiscal Year: Total
2008 ............................................................. $ 23,806
2009 ............................................................. 4,023
2010 ............................................................. 2,601
2011 ............................................................. 430
2012 ............................................................. 325,430
Thereafter ......................................................... 380
$356,670
Future minimum lease payments under capital leases of $8.8 million, excluding $0.5 million of interest, are included
in aggregate annual maturities shown above. Staples entered into new capital lease agreements totaling $3.9 million
during fiscal year 2007 and $3.1 million during fiscal year 2005. Staples entered into no new capital lease agreements
during fiscal year 2006.
Interest paid by Staples totaled $42.0 million, $45.9 million and $41.2 million for fiscal years 2007, 2006 and 2005,
respectively. There was no interest capitalized in fiscal 2007 or 2005. There was $0.2 million of capitalized interest in
fiscal 2006.
Notes: On September 30, 2002, Staples issued $325.0 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 E).
Senior Notes: On August 12, 1997, Staples issued $200.0 million principal amount of senior notes (the ‘‘Senior
Notes’’), with a fixed interest rate of 7.125% payable semi-annually on February 15 and August 15 of each year. Staples
entered into interest rate swap agreements to turn the Senior Notes into variable rate obligations (see Note E). The
Senior Notes were due in August 2007. On August 15, 2007, the Company repaid the $200.0 million Senior Notes and
paid $83.3 million to settle foreign currency swaps that matured on that date. The swaps that matured on August 15, 2007
were designated as a foreign currency hedge on Staples net investment in Canadian dollar denominated subsidiaries.
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