Mondelez 2014 Annual Report Download - page 80

Table of Contents
On January 16, 2014, we issued $3.0 billion of U.S. dollar notes, consisting of:
We received net proceeds of $2,982 million that were used to fund the February 2014 tender offer, pay down commercial paper
borrowings and for other general corporate purposes. We recorded approximately $18 million of discounts and deferred financing
costs, which will be amortized into interest expense over the life of the notes.
On December 18, 2013, we completed a cash tender offer and retired $3.4 billion of our long-term U.S. dollar debt consisting of:
We financed the repurchase of these notes, including the payment of accrued interest and other costs, with net proceeds received
from the € 2.4 billion notes issuance on December 11, 2013, cash on hand and commercial paper issuances. We recorded a $608
million loss on extinguishment of debt within interest expense related to the amount we paid to retire the debt in excess of its
carrying value and from recognizing unamortized discounts and deferred financing costs in earnings at the time of the debt
extinguishment. The loss on extinguishment is included in long-term debt repayments in the 2013 consolidated statement of cash
flows. We also recognized $4 million in interest expense related to interest rate cash flow hedges that were deferred in accumulated
other comprehensive losses and recognized into earnings over the life of the debt. Upon extinguishing the debt, the deferred cash
flow hedge amounts were recorded in earnings.
On December 11, 2013, we issued €
2.4 billion of Euro notes, or approximately $3.3 billion in U.S. dollars as of December 31, 2013,
consisting of:
We received net proceeds of € 2,381 million, or $3,239 million in U.S. dollars, on December 11, 2013, that were used to partially
fund the December 2013 tender offer. We also recorded approximately $27 million of discounts and deferred financing costs, which
will be amortized into interest expense over the life of the notes.
On October 1, 2013, $1 billion of our 5.125% U.S. dollar notes and $800 million of our 5.250% U.S. dollar notes matured. The notes
and accrued interest to date were paid with cash on hand and the issuance of commercial paper.
On May 8, 2013, $1 billion of our 2.625% U.S. dollar notes matured. The notes and accrued interest to date were paid with cash on
hand and the issuance of commercial paper.
On February 11, 2013, $750 million of our 6.00% U.S. dollar notes matured. The notes and accrued interest to date were paid with
cash on hand.
Our weighted-average interest rate on our total debt was 4.3% as of December 31, 2014, down from 4.8% as of December 31,
2013.
Fair Value of Our Debt:
The fair value of our short-
term borrowings at December 31, 2014 and 2013 reflects current market interest rates and approximates
the amounts we have recorded on our consolidated balance sheet. The fair value of our long-term debt was determined using
quoted prices in active markets (Level 1 valuation data) for the publicly traded debt obligations. At December 31, 2014, the
aggregate fair value of our total debt was $18,463 million and its carrying value was $16,700 million. At December 31, 2013, the
aggregate fair value of our total debt was $18,807 million and its carrying value was $17,079 million.
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• $400 million of floating rate notes that bear interest at three-month LIBOR plus 0.52% and mature on February 1, 2019
• $850 million of 2.250% fixed rate notes that mature on February 1, 2019
• $1,750 million of 4.000% fixed rate notes that mature on February 1, 2024
•
$
910 million of our 6.500% Notes due in August 2017
•
$
729 million of our 6.125% Notes due in February 2018
•
$
334 million of our 6.125% Notes due in August 2018
•
$
1,467 million of our 5.375% Notes due in February 2020
•
€
400 million (or $550 million) of floating rate notes that bear interest at three-month EURIBOR plus 0.50% and mature
on June 11, 2015
•
€
750 million (or $1,031 million) of 1.125% fixed rate notes that mature on January 26, 2017
•
€
1,250 million (or $1,718 million) of 2.375% fixed rate notes that mature on January 26, 2021