Interest Expense, net
Interest expense, net decreased to $15.5 million from $20.0 million mainly due to the prepayment of the Company’s $250 million 14.053 percent senior notes in August 2011.
The Company had an income tax benefit of $2.8 million (effective tax rate of 42.6 percent) in the third quarter of 2012 and an income tax expense of $27.7 million (effective tax rate of 39.5 percent) in the first nine months of 2012.The Company had an effective tax rate of 66.1 percent in the third quarter of 2011 primarily driven by the impact of special items. The Company’s effective tax rate for the first nine months of 2011 is not meaningful given the near break-even results. Liquidity The following table details the original maturities and carrying values of the Company’s debt and capital lease obligations as of September 23, 2012. Cash in the table below excludes restricted cash of approximately $24 million that is subject to certain collateral requirements. Net debt represents debt and capital lease obligations, net of cash and short-term investments. The Company believes net debt, a non-GAAP measure, provides a useful measure of the Company’s liquidity and overall debt position.
|(in thousands)||September 23, 2012|
2012 4.610% senior notes
2015 5.0% senior notes
2016 6.625% senior notes
2019 Option to repurchase ownership interest in headquarters building
|Less: Unamortized amounts||(30,175||)|
|Carrying value of debt||$||769,825|
|Capital lease obligations||7,114|
|Total debt and capital lease obligations||$||776,939|
|Less: Cash and short-term investments||(614,114||)|
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