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In December 2013, we issued $400 million of 3-year 0.875% Senior Notes (the "2016 notes") due December 2016, and $350
million of 5-year 2.000% Senior Notes (the "2018 notes") due December 2018, in an underwritten registered public offering.
Interest on the 2016 and 2018 notes is payable semi-annually on June 5 and December 5 of each year.
In September 2013, we issued $750 million of 10-year 3.85% Senior Notes (the "2023 notes") due October 2023, in an
underwritten registered public offering. Interest on the 2023 notes is payable semi-annually on April 1 and October 1 of each
year.
Components of long-term debt including the associated interest rates and related fair values (in millions, except interest rates):
Sep 27, 2015 Sep 28, 2014
Stated Interest
Rate
Effective
Interest Rate (1)
Issuance Face Value
Estimated Fair
Value Face Value
Estimated Fair
Value
2016 notes $ 400.0 $ 400 $ 400.0 $ 400 0.875% 0.941%
2017 notes — — 550.0 625 6.250% —%
2018 notes 350.0 354 350.0 353 2.000% 2.012%
2022 notes 500.0 503 — — 2.700% 2.819%
2023 notes 750.0 790 750.0 786 3.850% 2.860%
2045 notes 350.0 355 — — 4.300% 4.348%
Total 2,350.0 2,402 2,050.0 2,164
Aggregate unamortized discount 2.5 1.7
Total $ 2,347.5 $ 2,048.3
(1) Includes the effects of the amortization of any premium or discount and any gain or loss upon settlement of related treasury
locks or forward-starting interest rate swaps utilized to hedge the interest rate risk prior to the debt issuance.
The indentures under which the above notes were issued also require us to maintain compliance with certain covenants,
including limits on future liens and sale and leaseback transactions on certain material properties. As of September 27, 2015,
we were in compliance with each of these covenants.
The following table summarizes our long-term debt maturities as of September 27, 2015 (in millions):
Fiscal Year Total
2016 $ —
2017 400.0
2018 —
2019 350.0
2020 —
Thereafter 1,600.0
Total $ 2,350.0
Interest Expense
Interest expense, net of interest capitalized, was $70.5 million, $64.1 million, and $28.1 million in fiscal 2015, 2014 and 2013,
respectively. In fiscal 2015, 2014, and 2013, $3.6 million, $6.2 million, and $10.4 million, respectively, of interest was
capitalized for asset construction projects.
Note 10: Leases
Rent expense under operating lease agreements (in millions):
Fiscal Year Ended Sep 27, 2015 Sep 28, 2014 Sep 29, 2013
Minimum rent $ 1,026.3 $ 907.4 $ 838.3
Contingent rent 111.5 66.8 56.4
Total $ 1,137.8 $ 974.2 $ 894.7
76 Starbucks Corporation 2015 Form 10-K