Debt Obligations

12 Months Ended

Dec. 30, 2018

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 30, 2018		December 31, 2017
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%	3,202		6,596
Net option to repurchase ownership interest in headquarters building in 2019	246,798		243,404
Capital lease obligations	6,832		6,805
Total debt and capital lease obligations	253,630		250,209
Less current portion	253,630		—
Total long-term debt and capital lease obligations	$	—	$	250,209

See Note 9 for more information regarding the fair value of our debt.

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



(In thousands)	Amount
2019	$	250,000
2020	—
2021	—
2022	—
2023	—
Thereafter	—
Total face amount of maturities	250,000
Less: Unamortized debt costs and discount	(3,202		)
Carrying value of debt (excludes capital leases)	$	246,798

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



(In thousands)	December 30, 2018			December 31, 2017			December 25, 2016
Interest expense	$	28,134		$	27,732		$	39,487
Amortization of debt costs and discount on debt	3,394			3,205			4,897
Capitalized interest	(452		)	(1,257		)	(559		)
Interest income and other expense, net	(14,510		)	(9,897		)	(9,020		)
Total interest expense and other, net	$	16,566		$	19,783		$	34,805

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. We have an option, exercisable in the fourth quarter of 2019, to repurchase the Condo Interest for $250.0 million, and we have delivered notice of our intent to exercise this option.

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%.