Long-Term Debt

3 Months Ended

Mar. 03, 2012

Long-Term Debt

Long-Term Debt

9.     Long-Term Debt

Long-term debt includes:

	March 3, 2012			December 3, 2011
Nonrecourse mortgages:
6.08%, due January 1, 2013	$	6,863		$	6,926
6.30%, due May 1, 2014	409			453
5.73%, due August 1, 2015	19,274			19,368
8.13%, due April 1, 2016	4,155			4,232
7.0%, due October 1, 2017	6,166			6,220
Variable rate mortgage, due February 1, 2019*	11,552			11,609
Variable rate mortgage, due August 1, 2019*	8,138			8,176
5.25%, due January 28, 2020	4,128			4,151
Total nonrecourse mortgages	60,685			61,135
Revolving line of credit	—			—
Capital leases	95			46
Total	60,780			61,181
Less: current portion	(8,515		)	(1,700		)
Total long-term debt	$	52,265		$	59,481

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

Griffin is a party to two interest rate swap agreements related to nonrecourse mortgages on certain of its real estate assets.  Griffin accounts for both of its interest rate swap agreements as effective cash flow hedges (see Note 4).  No ineffectiveness on the cash flow hedges was recognized as of March 3, 2012 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.  Neither of the interest rate swap agreements contains any credit risk related contingent features.  In the 2012 first quarter, Griffin recognized a loss (included in other comprehensive income) of $240, before taxes, on its interest rate swap agreements.  In the 2011 first quarter, Griffin recognized a gain (included in other comprehensive income) of $758 before taxes, on its interest rate swap agreements.  In the 2012 first quarter and 2011 first quarter, the amounts of loss recognized on the effective portion of the interest rate swap agreements were $166 and $170, respectively.  As of March 3, 2012, $634 is expected to be reclassified over the next twelve months from other comprehensive income (loss) to interest expense.  As of March 3, 2012, the liability for Griffin’s interest rate swap agreements was $2,655 and is included in other noncurrent liabilities on Griffin’s consolidated balance sheet.