13. LONG-TERM DEBT

During fiscal 2012, we repaid the entire principal balance of $342.7 million of our 6.75% senior notes, which were due on September 15, 2011.

Net interest expense consists of:


	Thirteen weeks ended
	August 26, 2012			August 28, 2011
Long-term debt	$	51.6		$	56.1
Short-term debt		0.2			0.1
Interest income		(0.8	)		(1.3	)
Interest capitalized		(1.7	)		(2.0	)

	$	49.3		$	52.9

Our net interest expense for the first quarter of fiscal 2013 and 2012 was reduced by $2.2 million and $3.1 million, respectively, due to the impact of interest rate swap contracts entered into in the fourth quarter of fiscal 2010. The interest rate swaps effectively changed our interest rates on the senior long-term debt instruments maturing in fiscal 2012 and 2014 from fixed to variable. During the second quarter of fiscal 2011, we terminated the interest rate swap contracts and received proceeds of $31.5 million. The cumulative adjustment to the fair value of the debt instruments hedged (the effective portion of the hedge) is being amortized as a reduction of interest expense over the remaining lives of the debt instruments (through fiscal 2014).

On September 13, 2012, subsequent to the end of the first quarter of fiscal 2013, we issued senior unsecured notes in the aggregate principal amount of $750 million. These notes were issued in three tranches of $250 million, with terms to maturity and coupon rates of 3 years at 1.35%, 5.5 years at 2.10%, and 10 years at 3.25%, respectively.