LONG-TERM DEBT

On March 23, 2015, the Company entered into an amendment to its $1.5 billion revolving credit facility to exclude certain goodwill and other intangible asset impairments from the calculation of the fixed charge coverage ratio. As of February 22, 2015, we were in compliance with all financial covenants in the facility.

During the first quarter of fiscal 2015, we repurchased $225.0 million aggregate principal amount of senior notes due 2023, $200.0 million aggregate principal amount of senior notes due 2043, $25.0 million aggregate principal amount of senior notes due 2019, $25.0 million aggregate principal amount of senior notes due 2018, and $25.0 million aggregate principal amount of senior notes due 2017, in each case prior to maturity in a tender offer, resulting in a net loss of $16.3 million as a cost of early retirement of debt, including a $9.5 million tender premium.

During the first quarter of fiscal 2015, we repaid the remaining borrowings of our unsecured term loan facility (the "Term Loan Facility") of $900.0 million (with an interest rate at LIBOR plus 1.75% per annum), prior to maturity, resulting in a loss of $8.3 million as a cost of early retirement of debt. The Term Loan Facility was terminated after repayment.

During the first quarter of fiscal 2015, we issued $550.0 million aggregate principal amount of floating rate notes due July 21, 2016. The notes bear interest at a rate equal to three-month LIBOR plus 0.37% per annum.

During the second and third quarter of fiscal 2014, we repurchased $43.0 million and $20.0 million, respectively, of 4.65% senior notes due 2043 prior to maturity, resulting in net gains of $2.4 million and $1.3 million in the second and third quarters of fiscal 2014, respectively.

Net interest expense consists of:



	Thirteen weeks ended						Thirty-nine weeks ended
	February 22, 2015			February 23, 2014			February 22, 2015			February 23, 2014
Long-term debt	$	81.0		$	98.2		$	246.6		$	297.3
Short-term debt	1.0			0.3			2.3			1.1
Interest income	(0.1		)	(0.3		)	(0.9		)	(1.6		)
Interest capitalized	(1.6		)	(3.2		)	(4.7		)	(10.5		)
	$	80.3		$	95.0		$	243.3		$	286.3

Our net interest expense for the third quarter and first three quarters of fiscal 2015 was reduced by $1.9 million and $7.1 million, respectively, due to the impact of the interest rate swap contracts designated as fair value hedges entered into in the third quarter of fiscal 2014. Net interest expense was reduced by $0.7 million for the third quarter and first three quarters of fiscal 2014. The interest rate swaps effectively converted the interest on our senior long-term debt instruments maturing in fiscal 2019 and 2020 from fixed rate to floating rate (see Note 8). These interest rate swap contracts were terminated during the third quarter of fiscal 2015. The cumulative adjustments to the fair value of the debt instruments that were hedged (the effective portion of the hedges), totaling $12.6 million, will be amortized as a reduction of interest expense over the remaining lives of the debt instruments (through fiscal 2020). Our net interest expense was reduced by $0.2 million for the third quarter of fiscal 2015 as a result of this amortization.

We entered into interest rate swaps during fiscal 2010 that effectively changed our interest rate on the senior long-term debt instrument that matured in fiscal 2014 from fixed to variable. During the second quarter of fiscal 2011, we terminated these interest rate swap contracts and received proceeds of $28.2 million. The cumulative adjustment to the fair value of the debt instrument that was hedged (the effective portion of the hedge) was amortized as a reduction of interest expense over the remaining life of the debt instrument (through fiscal 2014). Net interest expense for the third quarter and first three quarters of fiscal 2014 was reduced by $2.4 million and $7.1 million, respectively.