Kraft 2010 Annual Report Download - page 78
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At December 31, 2010 and 2009, our long-term debt consisted of (interest rates were as of December 31, 2010):
December 31,
2010
December 31,
2009
(in millions)
Notes, 2.63% to 7.55% (average effective rate 5.86%), due through 2040 $ 22,872 $ 14,395
Euro notes, 5.75% to 6.25% (average effective rate 5.98%), due through 2015 3,808 4,072
Sterling notes, 5.38% to 7.25% (average effective rate 4.94%), due through 2018 1,091 -
Other foreign currency obligations 158 5
Capital leases and other 45 65
Total 27,974 18,537
Less current portion of long-term debt (1,115) (513)
Long-term debt $ 26,859 $ 18,024
As of December 31, 2010, aggregate maturities of long-term debt were (in millions):
2011 $ 1,115
2012 3,738
2013 3,557
2014 972
2015 1,541
Thereafter 17,062
On December 29, 2010 we repurchased $900 million principal amount of our 5.625% notes due 2011 and $600 million principal amount of our 6.25% notes
due 2012, which were validly tendered pursuant to the cash tender offers we initiated in November 2010. We paid $1,596 million aggregate consideration,
including accrued and unpaid interest, for the accepted notes in December 2010.
On December 20, 2010, we repaid £77 million (approximately $119 million) of our long-term debt and on August 11, 2010, we repaid $500 million of our
long-term debt. We funded these repayments with cash from operations and short-term borrowings.
On September 3, 2009, we redeemed our November 2011, 7% $200 million debenture at par value. Upon redemption, we recorded a loss of $14 million
within interest and other expense, net which represented the write-off of the remaining discount. On November 12, 2009, we repaid $750 million in notes.
This repayment was primarily financed from commercial paper issuances.
Fair Value:
The aggregate fair value of our total debt, based on quoted prices in active markets for identical liabilities, was $31,459 million at December 31, 2010 as
compared with the carrying value of $28,724 million. The aggregate fair value of our total debt, based on quoted prices in active markets for identical
liabilities, at December 31, 2009, was $20,222 million as compared with the carrying value of $18,990 million.
Interest and Other Expense:
Interest and other expense was:
For the Years Ended December 31,
2010 2009 2008
(in millions)
Interest and other expense, net:
Interest expense, debt $ 1,790 $ 1,260 $ 1,272
Acquisition-related financing fees $ 251 $ - $ -
Other income, net (17) (23) (32)
Total interest and other expense, net $ 2,024 $ 1,237 $ 1,240
75