represented the premium paid in the tender offer, the write-off of the remaining discount and unamortized fees, and the settlement of related swaps. We issued commercial paper to fund the repurchase. During fiscal 2010, we repaid $88 million of long-term bank debt held by wholly owned foreign subsidiaries. In January 2009, we issued $1.2 billion aggregate principal amount of 5.65 percent notes due 2019. In August 2008, we issued $700 million aggregate principal amount of 5.25 percent notes due 2013. The proceeds of these notes were used to repay a portion of our outstanding commercial paper. Interest on these notes is payable semi-annually in arrears. These notes may be redeemed at our option at any time for a specified make-whole amount. These notes are senior unsecured, unsubordinated obli- gations that include a change of control repurchase provision. In June 2010, subsequent to our fiscal 2010 year-end, we issued $500.0 million aggregate principal amount of 5.4 percent notes due 2040. The significant terms of these notes are similar to our previously issued notes. received insurance proceeds of $41 million in fiscal 2009 from the settlement with the insurance carrier covering the loss at our La Salteña pasta manufacturing facility in Argentina. These pro- ceeds offset the capital expenditures required to replace the manufacturing facility that was destroyed by fire in fiscal 2008. We expect capital expenditures to increase to approximately $700 million in fiscal 2011, including initiatives that will: increase manufacturing capacity for cereals and Yoplait yogurt; continue HMM initiatives throughout the supply chain; and expand Inter- national production capacity for Wanchai Ferry and Ha ¨agen-Dazs products. On October 15, 2007, we settled the forward contract estab- lished with Lehman Brothers in October 2004 in conjunction with the issuance by Lehman Brothers of $750 million of notes that were mandatorily exchangeable for shares of our common stock. In settlement of that forward contract, we issued 29 million shares of our common stock and received $750 million in cash from Lehman Brothers. We used the cash to reduce outstanding commercial paper balances. On August 7, 2007, we repurchased for a net amount of $843 mil- lion all of the outstanding Series B-1 Interests in GMC as part of a required remarketing of those interests. The purchase price reflected the Series B-1 Interests’ original capital account balance of $835 million and $8 million of capital account appreciation attributable and paid to the third-party holder of the Series B-1 Interests. The capital appreciation paid to the third-party holder of the Series B-1 Interests was recorded as a reduction to retained earnings, a component of stockholders’ equity, on our Consolidated Balance Sheets, and reduced net earnings available to common stockholders in our basic and diluted EPS calculations. Net cash used by financing activities increased by $99 million in fiscal 2010. In May 2010, we paid $437 million to repurchase in a cash tender offer $400 million of our previously issued debt. We repurchased $221 million of our 6.0 percent notes due 2012 and $179 million of our 5.65 percent notes due 2012. As a result of the repurchase, we recorded interest expense of $40 million which In April 2007, we issued $1.15 billion of floating rate convertible senior notes. In April 2008, holders of $1.14 billion of those notes tendered them to us for repurchase. In April 2009, we General Mills 32 Cash Flows from Financing Activities In Millions 2010 2009 2008 Fiscal Year ..................................................................................... ......................................................................................................................................................................................... Change in notes payable $ 235.8 $(1,390.5) $ 946.6 Issuance of long-term debt — 1,850.0 1,450.0 Payment of long-term debt (906.9) (370.3) (1,623.4) Settlement of Lehman Brothers forward purchase contract — — 750.0 Repurchase of Series B-1 limited membership interests in GMC — — (843.0) Repurchase of General Mills Capital, Inc. preferred stock — — (150.0) Proceeds from sale of Class A limited membership interests in GMC — — 92.3 Proceeds from common stock issued on exercised options 388.8 305.2 191.4 Tax benefit on exercised options 114.0 89.1 55.7 Purchases of common stock for treasury (691.8) (1,296.4) (1,432.4) Dividends paid (643.7) (579.5) (529.7) Other, net — (12.1) (0.5) ......................................................................................................................................................................................... Net cash used by financing activities $(1,503.8) $(1,404.5) $(1,093.0)