13. LONG-TERM DEBT

During the second quarter of fiscal 2013, we issued senior unsecured notes in the aggregate principal amount of $750.0 million. These notes were issued in three tranches of $250.0 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.

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						Twenty-six weeks ended
	November 25, 2012			November 27, 2011			November 25, 2012			November 27, 2011
Long-term debt	$	55.3		$	52.7		$	106.8		$	108.8
Short-term debt		0.1			—			0.3			0.1
Interest income		(0.7	)		(0.9	)		(1.4	)		(2.2	)
Interest capitalized		(1.3	)		(1.2	)		(3.0	)		(3.2	)

	$	53.4		$	50.6		$	102.7		$	103.5

Our net interest expense for the second quarter and first half of fiscal 2013 was reduced by $2.3 million and $4.5 million, respectively, due to the impact of the interest rate swap contracts entered into in the fourth quarter of fiscal 2010. Our net interest expense for the second quarter and first half of fiscal 2012 was reduced by $2.4 million and $5.5 million, respectively, due to the impact of the interest rate swap contracts. 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 that were 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).