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Interest Expense, Net
6 Months Ended
Sep. 10, 2011
Interest Expense, Net 
Interest Expense, Net

14. Interest Expense, Net

 

Interest expense, net is comprised of the following (in thousands):

 

 

 

For the 12 Weeks Ended

 

 

For the 28 Weeks Ended

 

 

 

Sept. 10, 2011

 

 

Sept. 11, 2010

 

 

Sept. 10, 2011

 

 

Sept. 11, 2010

 

$800 million Debtor-in-Possession Credit Agreement

 

$

8,585

 

 

$

-

 

 

$

20,053

 

 

$

-

 

$655 million Credit Agreement

 

 

341

 

 

 

3,104

 

 

 

1,052

 

 

 

7,109

 

Related Party Promissory Note, due Aug. 18, 2011

 

 

-

 

 

 

138

 

 

 

-

 

 

 

325

 

11.375% Senior Secured Notes, due Aug. 1, 2015

 

 

6,825

 

 

 

6,808

 

 

 

15,925

 

 

 

15,958

 

9.125% Senior Notes, due Dec. 15, 2011

 

 

-

 

 

 

269

 

 

 

-

 

 

 

629

 

5.125% Convertible Senior Notes, due June 15, 2011

 

 

-

 

 

 

1,941

 

 

 

-

 

 

 

4,542

 

6.750% Convertible Senior Notes, due Dec. 15, 2012

 

 

-

 

 

 

3,950

 

 

 

-

 

 

 

9,245

 

9.375% Notes, due August 1, 2039

 

 

-

 

 

 

4,280

 

 

 

-

 

 

 

10,095

 

Obligations under capital leases and real estate liabilities

 

 

11,056

 

 

 

11,293

 

 

 

27,318

 

 

 

26,735

 

Self-insurance and GHI interest

 

 

4,466

 

 

 

3,752

 

 

 

11,399

 

 

 

8,871

 

GHI discount rate adjustment and COLI non-cash interest

 

 

6,380

 

 

 

3,759

 

 

 

10,021

 

 

 

7,648

 

Amortization of deferred financing fees and discounts

 

 

159

 

 

 

6,647

 

 

 

491

 

 

 

15,381

 

Other

 

 

17

 

 

 

194

 

 

 

24

 

 

 

769

 

Subtotal

 

 

37,829

 

 

 

46,135

 

 

 

86,283

 

 

 

107,307

 

Interest income

 

 

-

 

 

 

(9

)

 

 

-

 

 

 

(39

)

Interest expense, net

 

$

37,829

 

 

$

46,126

 

 

$

86,283

 

 

$

107,268

 

 

We recorded $8.6 million and $20.1 million in contractual interest for the DIP Credit Agreement during the 12 and 28 weeks ended September 10, 2011, respectively. We continued to record contractual interest for our $260 million 11.375% Senior Secured Notes due August 1, 2015 that were issued in August 2009.  We did not record contractual interest expense of approximately $8.6 million and $22.6 million for the 12 and 28 weeks ended September 10, 2011, respectively, for our Related Party Promissory Note, due August 18, 2011, 9.125% Senior Notes, due December 15, 2011, 5.125% Convertible Senior Notes, due June 15, 2011, 6.750% Convertible Senior Notes, due December 15, 2012, and 9.375% Notes, due August 1, 2039, all of which are unsecured obligations for which we ceased accruing interest during the fourth quarter 2010 as a result of the Bankruptcy Filing.  Debt discounts and deferred financing fees for all debt which is subject to compromise were reclassified into the carrying value of the respective indebtedness upon the Bankruptcy Filing and the balances were then adjusted to the face value of the debt.  As a result of this reclassification, we ceased amortization of deferred financing fees and discounts effective as of the Bankruptcy Filing date. Although we have recorded interest accretion expense on obligations under capital leases and real estate liabilities, self-insurance reserves, GHI and corporate owned life insurance obligations, we have not made a final determination as to the value of any underlying assets or the rejection/assumption of any of the obligations that we have not assumed.  Once a determination is made, the accretion of the interest expense may change.