Kraft 2012 Annual Report Download - page 62

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As of December 29, 2012, aggregate maturities of long-term debt were (in millions):
2013 $ 5
2014 3
2015 1,403
2016 3
2017 1,003
Thereafter 7,611
Our long term debt contains customary representations, covenants, and events of default. We were in compliance with all
covenants as of December 29, 2012.
Fair Value of Our Debt:
The aggregate fair value of our total debt was $11.5 billion as compared with the carrying value of $10.0 billion at
December 29, 2012. At December 31, 2011, our total debt only consisted of capital leases which approximated fair value.
We determined the fair value of our long-term debt using Level 1 quoted prices in active markets for the publicly traded
debt obligations.
Interest and Other Expense, Net:
Interest and other expense, net consisted of:
For the Years Ended
December 29,
2012
December 31,
2011
December 31,
2010
(in millions)
Interest expense $ 238 $ 4 $ 3
Other expense / (income), net 20 3 3
Total interest and other expense, net $ 258 $ 7 $ 6
The increase in interest expense in 2012 compared to 2011 was due to the $6.0 billion debt issuance in June 2012, the
$3.6 billion debt exchange in July 2012 and the transfer of $0.4 billion of debt from Mondele¯z International in October
2012.
Note 8. Capital Stock
Our articles of incorporation authorize 5.0 billion shares of common stock and 500 million shares of preferred stock. On
October 1, 2012, Mondele¯ z International distributed 592 million shares of Kraft Foods Group common stock to Mondele¯z
International’s shareholders. Holders of Mondele¯ z International common stock received one share of Kraft Foods Group
common stock for every three shares of Mondele¯z International common stock held on September 19, 2012.
Shares of common stock issued, in treasury and outstanding were:
Shares Issued Treasury Shares
Shares
Outstanding
Consummation of spin-off transaction on October 1, 2012 592,257,298 - 592,257,298
Exercise of stock options and issuance of other stock awards 526,398 (19,988) 506,410
Balance at December 29, 2012 592,783,696 (19,988) 592,763,708
As of December 29, 2012, approximately 1.4 million outstanding shares were held in trust in connection with our restricted
stock. See Note 9, Stock Plans, for a description of these shares. There were no preferred shares issued and outstanding
at December 29, 2012.
Note 9. Stock Plans
Under the Kraft Foods Group, Inc. 2012 Performance Incentive Plan (the “2012 Plan”), we may grant eligible employees
awards of stock options, stock appreciation rights, restricted stock, restricted stock units (“RSUs”), and other awards
based on our common stock, as well as performance-based long-term incentive awards (“Performance Shares”). In
addition, we may grant shares of our common stock to members of the Board of Directors who are not our full-time
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