Debt Obligations

Our current indebtedness included senior notes and the repurchase option related to a sale-leaseback of a portion of our New York headquarters. Our total debt and capital lease obligations consisted of the following:



(In thousands, except percentages)	Coupon Rate		December 28, 2014		December 29, 2013
Current portion of long-term debt and capital lease obligations
Senior notes due in 2015, net of unamortized debt costs and discount of $7 in 2014	5.0	%	$	223,662	$	—
Short-term capital lease obligations⁽¹⁾			—		21
Total current portion of debt and capital lease obligations			223,662		21
Long-term debt and capital lease obligations
Senior notes due 2015, net of unamortized debt costs and discount of $43 in 2013	5.0	%	—		244,057
Senior notes due in 2016, net of unamortized debt costs and discount of $1,566 in 2014 and $2,484 in 2013	6.625	%	187,604		205,111
Option to repurchase ownership interest in headquarters building in 2019, net of unamortized debt costs and discount of $17,882 in 2014 and $21,741 in 2013			232,118		228,259
Long-term capital lease obligations			6,736		6,715
Total long-term debt and capital lease obligations			426,458		684,142
Total debt and capital lease obligations			$	650,120	$	684,163


(1)	Included in “Accrued expenses and other” in our Condensed Consolidated Balance Sheets.

See Note 8 for information regarding the fair value of our long-term debt.

The aggregate face amount of maturities of debt over the next five years and thereafter is as follows:



(In thousands)	Amount
2015	$	223,669
2016	189,170
2017	—
2018	—
2019	250,000
Thereafter	—
Total face amount of maturities	662,839
Less: Unamortized debt costs and discount	(19,455		)
Carrying value of debt (excludes capital leases)	$	643,384

Interest expense, net, as shown in the accompanying Consolidated Statements of Operations was as follows:



(In thousands)	December 28, 2014			December 29, 2013			December 30, 2012
Cash interest expense	$	51,877		$	52,913		$	58,291
Premium on debt repurchases	2,538			2,127			428
Amortization of debt costs and discount on debt	4,651			4,548			4,516
Capitalized interest	(152		)	—			(17		)
Interest income	(5,184		)	(1,515		)	(410		)
Total interest expense, net	$	53,730		$	58,073		$	62,808

4.610% Notes

On September 26, 2012, we repaid in full all $75.0 million aggregate principal amount of 4.610% senior notes due on that date (“4.610% Notes”).

5.0% Notes

In 2005, we issued $250.0 million aggregate principal amount of 5.0% senior unsecured notes due March 15, 2015 (“5.0% Notes”). During 2014, we repurchased $20.4 million principal amount of our 5.0% Notes and recorded a $0.3 million pre-tax charge in connection with the repurchase. During 2012, we repurchased $5.9 million principal amount of our 5.0% Notes and recorded a $0.4 million pre-tax charge in connection with the repurchase. This charge is included in “Interest expense, net” in our Consolidated Statements of Operations.

The 5.0% Notes may be redeemed, in whole or in part, at any time, at a price equal to 100% of the principal amount of the notes redeemed, plus accrued and unpaid interest to the repurchase date plus a “make-whole” premium. The 5.0% Notes are not otherwise callable.

The 5.0% Notes are subject to certain covenants that, among other things, limit (subject to customary exceptions) our ability and the ability of certain material subsidiaries to:


•	create liens on certain assets to secure debt; and


•	enter into certain sale-leaseback transactions.

The Company intends to repay the 5.0% Notes in full at their maturity on March 15, 2015 from cash on hand.

6.625% Notes

In November 2010, we issued $225.0 million aggregate principal amount of 6.625% senior unsecured notes due on December 15, 2016 (“6.625% Notes”). During 2014, we repurchased $18.4 million principal amount of our 6.625% Notes and recorded a $2.2 million pre-tax charge in connection with the repurchases. During 2013, we repurchased $17.4 million principal amount of our 6.625% Notes and recorded a $2.1 million pre-tax charge in connection with the repurchases.

We have the option to redeem all or a portion of the 6.625% Notes, at any time, at a price equal to 100% of the principal amount of the notes redeemed plus accrued and unpaid interest to the redemption date plus a “make-whole” premium. The 6.625% Notes are not otherwise callable.

The 6.625% Notes are subject to certain covenants that, among other things, limit (subject to customary exceptions) our ability and the ability of our subsidiaries to:


•	incur additional indebtedness and issue preferred stock;


•	pay dividends or make other equity distributions;


•	agree to any restrictions on the ability of our restricted subsidiaries to make payments to us;


•	create liens on certain assets to secure debt;


•	make certain investments;


•	merge or consolidate with other companies or transfer all or substantially all of our assets; and


•	engage in sale-leaseback transactions.

Warrants

In January 2009, pursuant to a securities purchase agreement, we issued warrants to affiliates of Carlos Slim Helú, the beneficial owner of approximately 8% of our Class A Common Stock (excluding the warrants), to purchase 15.9 million shares of our Class A Common Stock at a price of $6.3572 per share. On January 14, 2015, the warrant holders exercised these warrants in full and the Company received cash proceeds of approximately $101.1 million from this exercise. The Company currently intends to use the cash proceeds to repurchase Class A shares from time to time in open market transactions as conditions permit. See Note 19 for additional information.

Sale-Leaseback Financing

In March 2009, we entered into an agreement to sell and simultaneously lease back a portion of our leasehold condominium interest in our Company’s headquarters building located at 620 Eighth Avenue in New York City (the “Condo Interest”). The sale price for the Condo Interest was $225.0 million. We have an option, exercisable in 2019, to repurchase the Condo Interest for $250.0 million. The lease term is 15 years, and we have three renewal options that could extend the term for an additional 20 years.

The transaction is accounted for as a financing transaction. As such, we have continued to depreciate the Condo Interest and account for the rental payments as interest expense. The difference between the purchase option price of $250.0 million and the net sale proceeds of approximately $210.5 million, or approximately $39.0 million, is being amortized over a 10-year period through interest expense. The effective interest rate on this transaction was approximately 13%.

Revolving Credit Facility

In November 2012, we terminated our $125.0 million asset-backed five-year revolving credit facility and recorded a pre-tax charge of $1.4 million in connection with the early termination, which is included in “Interest expense, net” in our Consolidated Statements of Operations.