Coca Cola 2015 Annual Report Download - page 111

During 2013, the Company retired $1,250 million of debt upon maturity. The Company also extinguished $2,154 million of long-term debt prior to maturity,
incurring associated extinguishment charges of $50 million. The general terms of the notes that were extinguished were:
• $225 million total principal amount of notes due August 15, 2013, at a fixed interest rate of 5.0 percent;
• $675 million total principal amount of notes due March 3, 2014, at a fixed interest rate of 7.375 percent;
• $900 million total principal amount of notes due March 15, 2014, at a fixed interest rate of 3.625 percent; and
• $354 million total principal amount of notes due March 1, 2015, at a fixed interest rate of 4.25 percent.
The Company's long-term debt consisted of the following (in millions, except average rate data):

December 31, 2014



Amount
Average
Rate1
U.S. dollar notes due 2016–2093  

$ 17,433
1.8%
U.S. dollar debentures due 2017–2098 

2,157
3.9
U.S. dollar zero coupon notes due 20202


143
8.4
Euro notes due 2017–20273

2,468
3.7
Swiss franc notes due 2017–20283

—
—
Other, due through 20984

380
4.0
Fair value adjustment5


34
N/A
Total6,7
 

$ 22,615
2.2%
Less current portion 
3,552
Long-term debt  
$ 19,063
1 These rates represent the weighted-average effective interest rate on the balances outstanding as of year end, as adjusted for the effects of interest rate swap agreements, cross
currency swap agreements and fair value adjustments, if applicable. Refer to Note 5 for a more detailed discussion on interest rate management.
2 This amount is shown net of unamortized discounts of $23 million and $28 million as of December 31, 2015 and 2014, respectively.
3 This amount includes adjustments recorded due to changes in foreign currency exchange rates.
4 As of December 31, 2015, the amount shown includes $156 million of debt instruments that are due through 2031.
5 Amount represents changes in fair value due to changes in benchmark interest rates. Refer to Note 5 for additional information about our fair value hedging strategy.
6 As of December 31, 2015 and 2014, the fair value of our long-term debt, including the current portion, was $31,308 million and $23,411 million, respectively. The fair value of
our long-term debt is estimated based on quoted prices for those or similar instruments.
7 The above notes and debentures include various restrictions, none of which is presently significant to our Company.
The carrying value of the Company's long-term debt included fair value adjustments related to the debt assumed from Coca-Cola Enterprises Inc.'s ("Old
CCE") former North America business in 2010 of $411 million and $464 million as of December 31, 2015 and 2014, respectively. These fair value
adjustments are being amortized over the number of years remaining until the underlying debt matures. As of December 31, 2015, the weighted-average
maturity of the assumed debt to which these fair value adjustments relate was approximately 20 years. The amortization of these fair value adjustments will
be a reduction of interest expense in future periods, which will typically result in our interest expense being less than the actual interest paid to service the
debt.
Total interest paid was $515 million, $498 million and $498 million in 2015, 2014 and 2013, respectively.
Maturities of long-term debt for the five years succeeding December 31, 2015, are as follows (in millions):
Maturities of
Long-Term Debt
2016 $ 2,677
2017 3,368
2018 3,302
2019 2,294
2020 3,927
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