Debt Obligations

12 Months Ended

Dec. 31, 2017

Our indebtedness primarily 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)	December 31, 2017		December 25, 2016
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%	6,596		9,801
Total option to repurchase ownership interest in headquarters building in 2019	243,404		240,199
Capital lease obligations	6,805		6,779
Total long-term debt and capital lease obligations	$	250,209	$	246,978

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
2018	$	—
2019	250,000
2020	—
2021	—
2022	—
Thereafter	—
Total face amount of maturities	250,000
Less: Unamortized debt costs and discount	(6,596		)
Carrying value of debt (excludes capital leases)	$	243,404

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



(In thousands)	December 31, 2017			December 25, 2016			December 27, 2015
Interest expense	$	27,732		$	39,487		$	41,973
Amortization of debt costs and discount on debt	3,205			4,897			4,756
Capitalized interest	(1,257		)	(559		)	(338		)
Interest income and other expense, net	(9,897		)	(9,020		)	(7,341		)
Total interest expense and other, net	$	19,783		$	34,805		$	39,050

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. 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. In January 2018, we delivered notice of our intent to exercise this option. See Note 19 for more detail on this notice.

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%.