Debt Obligations

Our current indebtedness consisted of 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)	December 25, 2016		December 27, 2015
Total debt and capital lease obligations:
Senior notes due in 2016
Principal amount	—		189,170
Less unamortized discount based on imputed interest rate of 6.625%	—		793
Total senior notes due in 2016	—		188,377
Option to repurchase ownership interest in headquarters building in 2019
Principal amount	250,000		250,000
Less unamortized discount based on imputed interest rate of 13.0%	9,801		13,905
Total option to repurchase ownership interest in headquarters building in 2019	240,199		236,095
Capital lease obligations	6,779		6,756
Total debt and capital lease obligations	246,978		431,228
Less current portion	—		188,377
Total long-term debt and capital lease obligations	$	246,978	$	242,851

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
2017	$	—
2018	—
2019	250,000
2020	—
2021	—
Thereafter	—
Total face amount of maturities	250,000
Less: Unamortized debt costs and discount	(9,801		)
Carrying value of debt (excludes capital leases)	$	240,199

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



(In thousands)	December 25, 2016			December 27, 2015			December 28, 2014
Interest expense	$	39,487		$	41,973		$	51,877
Premium on debt repurchases	—			—			2,538
Amortization of debt costs and discount on debt	4,897			4,756			4,651
Capitalized interest	(559		)	(338		)	(152		)
Interest income	(9,020		)	(7,341		)	(5,184		)
Total interest expense, net	$	34,805		$	39,050		$	53,730

6.625% Notes

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

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 less transaction costs, for net proceeds of approximately $211 million. The lease term is 15 years, and we have three renewal options that could extend the term for an additional 20 years. We have an option, exercisable in 2019, to repurchase the Condo Interest for $250.0 million, which we currently expect to exercise.

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 $211 million, or approximately $39 million, is being amortized over a 10-year period through interest expense. The effective interest rate on this transaction was approximately 13%.