10. Long-Term Debt

Long-term debt includes:

	Nov. 30, 2013			Dec. 1, 2012

Nonrecourse mortgages:
6.30%, due May 1, 2014	$	99		$	289
5.73%, due August 1, 2015		18,615			19,018
8.13%, due April 1, 2016		3,603			3,943
7.0%, due October 1, 2017		5,779			6,016
Variable rate mortgage, due October 2, 2017*		6,563			6,726
Variable rate mortgage, due February 1, 2019*		11,150			11,396
Variable rate mortgage, due August 1, 2019*		7,869			8,034
Variable rate mortgage, due January 27, 2020*		3,961			4,067
Variable rate mortgage, due September 1, 2023*		9,069			—


Total nonrecourse mortgages		66,708			59,489
Revolving line of credit		—			—
Capital leases		85			72


Total		66,793			59,561
Less: current portion		(2,101	)		(1,869	)


Total long-term debt	$	64,692		$	57,692

*: Griffin entered into interest rate swap agreements to effectively fix the interest rates on these loans (see below).

The annual principal payment requirements under the terms of the nonrecourse mortgage loans for the fiscal years 2014 through 2018 are $2,066, $19,828, $4,144, $11,877 and $936, respectively. The aggregate book value of land and buildings that are collateral for the nonrecourse mortgage loans was approximately $71,100 at November 30, 2013. The aggregate book value of land and buildings that are collateral for the revolving line of credit was approximately $10,600 at November 30, 2013.

On August 28, 2013, a subsidiary of Griffin closed on a $9,100 nonrecourse mortgage loan with First Niagara Bank (the "2023 First Niagara Mortgage"), collateralized by a 228,000 square foot industrial building in Lower Nazareth, Pennsylvania that was constructed in fiscal 2012 and fully leased in fiscal 2013. Although this mortgage is nonrecourse, Griffin and its subsidiary entered into a master lease that is coterminous with the 2023 First Niagara Mortgage which would become effective if the full building tenant in that building does not renew its five-year lease when it is scheduled to expire in fiscal 2018. The 2023 First Niagara Mortgage has a ten-year term with monthly payments based on a twenty-five year amortization schedule. The interest rate for the 2023 First Niagara Mortgage is a floating rate of the one month LIBOR rate plus 1.95%. At the time Griffin closed on the 2023 First Niagara Mortgage, Griffin also entered into an interest rate swap agreement with First Niagara Bank for a notional principal amount of $9,100 at inception to fix the interest rate of the 2023 First Niagara Mortgage at 4.79%.

On April 24, 2013, Griffin closed on a new $12,500 revolving credit line with Webster Bank (the "Webster Credit Line"). The Webster Credit Line is for two years with an option for Griffin to extend the credit line for a third year. The Webster Credit Line replaced Griffin's $12,500 credit line with Doral Bank (the "Doral Credit Line") that was scheduled to expire on May 1, 2013. Interest on the outstanding borrowings under the Webster Credit Line are at the one month LIBOR rate plus 2.75%. Interest on outstanding borrowings under the Doral Credit Line was the higher of the prime rate plus 1.5% or 5.875%. The Webster Credit Line is collateralized by Griffin Land's properties in Griffin Center South, aggregating approximately 235,000 square feet, and an approximately 48,000 square foot single-story office building in Griffin Center. These are the same properties that collateralized the Doral Credit Line. There were no borrowings under the Doral Credit Line in fiscal 2013 or fiscal 2012 and there were no borrowings under the Webster Credit Line as of November 30, 2013.

On April 1, 2013, a subsidiary of Griffin entered into a modification agreement for its 5.25% nonrecourse mortgage loan with First Niagara Bank due January 27, 2020 (the "2020 First Niagara Mortgage"). The modification agreement changed the interest rate of the 2020 First Niagara Mortgage from a fixed rate of 5.25% to a variable rate of the one month LIBOR rate plus 2.5%. The loan modification did not change the loan's collateral or maturity date. Griffin Land paid $70 to First Niagara Bank for the loan modification, plus transaction costs. Because the difference between the present values of the future payments under the existing loan and the modified loan is greater than 10%, the loan modification was accounted for as a debt extinguishment. As such, all deferred costs related to the 2020 First Niagara Mortgage ($216) and the fee paid to First Niagara Bank for the modification agreement are reflected as a loss on debt extinguishment on Griffin's consolidated statement of operations. Concurrent with the completion of the loan modification agreement, Griffin Land entered into an interest rate swap agreement with First Niagara Bank to fix the interest rate on the 2020 First Niagara Mortgage at 3.91% for the duration of the loan.

On June 15, 2012, Griffin and two of its wholly-owned subsidiaries entered into the Third Modification Agreement (the "Modification Agreement") to the mortgage loan originally due January 1, 2013 with Webster Bank (the "Webster Mortgage"). The Modification Agreement extended the maturity of the Webster Mortgage to October 2, 2017. In accordance with the Modification Agreement, the interest rate under the Webster Mortgage, which was fixed at 6.08% through September 30, 2012, changed, effective October 1, 2012, to a floating rate of one month LIBOR plus 2.75%. In anticipation of entering into the Modification Agreement, on June 7, 2012, Griffin entered into an interest rate swap agreement with Webster Bank to effectively fix the interest rate on the Webster Mortgage at 3.86% from October 1, 2012 through the maturity of the Webster Mortgage. Pursuant to the Modification Agreement, effective on October 1, 2012, principal payments on the Webster Mortgage are based on a twenty-five year amortization schedule. The Webster Mortgage is collateralized by Griffin Land's two multi-story office buildings in Windsor, Connecticut. The Modification Agreement did not alter the collateral for the Webster Mortgage.

As of November 30, 2013, Griffin was a party to several interest rate swap agreements related to its variable rate nonrecourse mortgages on certain of its real estate assets. Griffin accounts for its interest rate swap agreements as effective cash flow hedges (see Note 3). No ineffectiveness on the cash flow hedges was recognized as of November 30, 2013 and none is anticipated over the term of the agreements. Amounts in other comprehensive income (loss) will be reclassified into interest expense over the term of the swap agreements to achieve fixed rates on each mortgage. None of the interest rate swap agreements contain any credit risk related contingent features. In fiscal 2013, Griffin recognized a net gain (included in other comprehensive income) before taxes of $969 on its interest rate swap agreements. In fiscal 2012 and fiscal 2011, Griffin recognized net losses (included in other comprehensive loss) before taxes of $776 and $934, respectively, on its interest rate swap agreements.

As of November 30, 2013, $998 is expected to be reclassified over the next twelve months from accumulated other comprehensive loss to interest expense. As of November 30, 2013, the net fair value of Griffin's interest rate swap agreements was $2,222, with $63 included in other noncurrent assets and $2,285 included in other noncurrent liabilities on Griffin's consolidated balance sheet. As of December 1, 2012, the value of Griffin's interest rate swap agreements was $3,191 and is included in other noncurrent liabilities on Griffin's consolidated balance sheet.

Future minimum lease payments under capital leases held by Griffin as lessee, principally for vehicles, and the present value of such payments as of November 30, 2013 were:


2014	$	39
2015		33
2016		17
2017		3


Total minimum lease payments		92
Less: amounts representing interest		(7	)


Present value of minimum lease payments(a)	$	85

(a): Includes current portion of $35 at November 30, 2013.

Assets subject to capital leases, with Griffin as lessee, that are included in machinery and equipment were as follows:

	Nov. 30, 2013			Dec. 1, 2012

Machinery and equipment, at cost	$	371		$	406
Accumulated amortization		(288	)		(334	)


Machinery and equipment, net	$	83		$	72

Amortization expense relating to capital leases was:

	For the Fiscal Years Ended,

	Nov. 30, 2013		Dec. 1, 2012		Dec. 3, 2011
Amortization expense	$	36	$	36	$	39