6. Long-Term Debt

Long-term debt is as follows (in thousands):

	October 1, 2011			January 1, 2011
Revolving credit facility, due 2014	$	—		$	—
7⅞% senior subordinated notes, due 2013		296,270			296,270
8⅜% senior subordinated notes, due 2014 ($32.2 million outstanding principal amount as of October 1, 2011 and January 1, 2011)		32,532			32,610
Term loan B, due 2016 ($377.2 million and $380.0 million outstanding principal amount as of October 1, 2011 and January 1, 2011, respectively)		373,825			376,200
10½% senior notes, due 2016		170,000			170,000
8⅞% senior second lien notes, due 2018 ($400.0 million outstanding principal amount as of October 1, 2011 and January 1, 2011)		397,634			397,432
Other debt including capital leases		17,434			21,491
		1,287,695			1,294,003
Less current maturities		(9,409	)		(10,098	)
Long-term debt	$	1,278,286		$	1,283,905

The estimated fair value of the Company’s long-term debt was approximately $1.1 billion and $1.3 billion as of October 1, 2011 and January 1, 2011, respectively. The fair value was determined by the Company to be Level 2 under the fair value hierarchy and was based upon review of interest rates on financing options available to the Company with similar terms and maturities.

As of October 1, 2011, the Company was in compliance with all debt agreement covenants.

Interest Rate Swaps

From time to time the Company enters into interest rate swap agreements to hedge interest rate exposure of notional amounts of its floating rate debt. The Company’s hedges of interest rate risk were designated and documented at inception as cash flow hedges and were evaluated for effectiveness at least quarterly. As of October 1, 2011, the Company did not have any outstanding interest rate swap obligations. As of January 1, 2011, the Company had $200.0 million notional amount of such interest rate swaps. During the nine months ended October 1, 2011, the Company redeemed all of the remaining $200.0 million notional amount of its interest rate swaps. For the nine months ended October 1, 2011, income from ineffectiveness of $2.2 million and expense of $2.2 million, respectively, relating to the amortization from accumulated other comprehensive income (loss) (Note 12) was recorded in interest expense, net in the condensed consolidated statement of operations. For the three and nine months ended October 2, 2010, income from ineffectiveness of $0.3 million and $1.0 million, respectively, and expense of $0.2 million and $1.2 million, respectively, relating to the amortization from accumulated other comprehensive income (loss) (Note 12) was recorded in interest expense, net in the condensed consolidated statement of operations.

The Company’s interest rate swaps were valued using discounted cash flows, as no quoted market prices exist for the specific instruments. The primary inputs to the valuation were maturity and interest rate yield curves, specifically three-month London Interbank Offered Rate, using commercially available market sources. The interest rate swaps were categorized as Level 2 under the fair value hierarchy. The table below presents the fair value of the Company’s interest rate swaps (in thousands):

	October 1, 2011	January 1, 2011
Current Liabilities:
Interest Rate Swaps (ineffective)	$ —	$ 2,222

Extinguishments

In connection with a refinancing in February 2010, the Company incurred a loss on early extinguishment of debt of $2.6 million, of which $1.5 million relates to fees paid to consenting lenders and $1.1 million relates to the write-off of previously unamortized debt issuance costs.

Subsequent Event

On October 28, 2011, the Company amended (the “Amendment”) its $530 million senior secured facility, which includes a $150 million revolving credit facility due 2014 and a $380 million term loan due 2016 (“2010 Credit Facilities”). The Amendment allows the Company to repurchase up to $30 million of its outstanding notes, subject to a maximum leverage ratio. In connection with the Amendment, the Company paid $2.6 million to consenting lenders, which will be capitalized and amortized to interest expense, net in the condensed consolidated statement of operations over the remaining life of the 2010 Credit Facilities. The Company may from time to time seek to purchase its outstanding notes in open market purchases, privately negotiated transactions or otherwise. Such repurchases, if any, will depend on prevailing market conditions, the Company’s liquidity requirements, contractual restrictions and other factors.