Amendment No. 3 to Form S-1 Table of Contents (d) Interest expense, net The net pro forma adjustment to Interest expense, net, is primarily driven by AB Acquisition's funding of the Safeway acquisition through borrowings of $4,859.0 million under the ABS/Safeway Term Loan Facilities, $850.0 million under the NAI Term Loan Facilities, net borrowings of S609.6 million under the 7.75% ABS/Safeway Notes and an additional $776.0 million under the ABS/Safeway ABL Facility, net of estimated payments on long-term borrowings related to the proceeds from the FTC divestitures. Interest expense, net Interest expense related to outstanding debt and capital lease obligations of AB Fiscal 2014 16 weeks ended June 12, 2014 (in millions) (in millions) Acquisition $ 938.6 283.4 Elimination of historical interest expense related to historical debt and capital lease obligations (916.5) (243.1) Period alignment adjustment 21.3 34.3 Pro forma adjustment to increase Interest expense, net $ 43.4 74.6 (e) Other expense, net The net pro forma adjustment to Other expense, net primarily reflects the elimination of the loss on the deal-contingent interest rate swap (the "Deal-Contingent Swap"). Prior to the Safeway acquisition, the swap was treated as an economic hedge with changes in fair value recorded through earnings. Upon closing of the Safeway acquisition, the interest rate swap was designated as a cash flow hedge, with any subsequent changes in fair value being recorded through Accumulated other comprehensive income. Fiscal 2014 (in millions) 16 weeks ended June 12, 2014 (In millions) Other expense, net Elimination of loss on Deal-Contingent Swap $ (96.1) $ (22.8) Elimination of PDC properties' historical Other expense (2.0) Pro forma adjustment to decrease Other expense, net $ (98.1) (22.8) (f) Income tax (benefit) expense The unaudited pro forma condensed consolidated income tax (benefit) expense has been adjusted for the tax effec