(9) Long-Term Debt

Components of long-term debt are as follows:

	2015			2014
	Carrying Cost		Fair Value	Carrying Cost	Fair Value

6.35% Notes Due 2040	$	500,000	556,300	500,000	617,700
6.30% Notes Due 2017		350,000	374,045	350,000	387,660
5.10% Notes Due 2044		300,000	286,710	300,000	316,980
3.15% Notes Due 2021		300,000	300,060	300,000	302,700
6.60% Debentures Due 2028		109,895	121,269	109,895	128,698
Total long-term debt		1,559,895	1,638,384	1,559,895	1,753,738
Less: Deferred debt expenses		12,780	-	14,042	-
Long-term debt	$	1,547,115	1,638,384	1,545,853	1,753,738

In May 2014, the Company issued $600,000 in long-term debt which consists of $300,000 of 3.15% Notes Due in 2021 and $300,000 of 5.10% Notes Due in 2044 (collectively, the "Notes"). The Company may redeem the Notes at its option at the greater of the principal amount of the Notes or the present value of the remaining scheduled payments discounted using the effective interest rate on applicable U.S. Treasury bills at the time of repurchase. Prior to the issuance of the Notes, the Company held forward-starting interest rate swap contracts to hedge the variability in the anticipated underlying U.S. Treasury interest rate associated with the expected issuance of the Notes. At the date of issuance, these contracts were terminated and the Company paid $33,306, the fair value of the contracts on that date, to settle. Of this amount, $6,373 related to 3.15% Notes Due 2021 and $26,933 related to 5.10% Notes Due 2044, which have been deferred in AOCE and are being amortized to interest expense over the life of the respective Notes using the effective interest rate method. The proceeds from the Notes have been presented net of the payment for these contracts in the consolidated statements of cash flows.

The fair values of the Company's long-term debt are considered Level 3 fair values (see note 12 for further discussion of the fair value hierarchy) and are measured using the discounted future cash flows method. In addition to the debt terms, the valuation methodology includes an assumption of a discount rate that approximates the current yield on a similar debt security. This assumption is considered an unobservable input in that it reflects the Company's own assumptions about the inputs that market participants would use in pricing the asset or liability. The Company believes that this is the best information available for use in the fair value measurement.

Interest rates for the 6.30% Notes Due 2017 may be adjusted upward in the event that the Company's credit rating from Moody's Investor Services, Inc., Standard & Poor's Ratings Services or Fitch Ratings is reduced to Ba1, BB+, or BB+, respectively, or below. At December 27, 2015, the Company's ratings from Moody's Investor Services, Inc., Standard & Poor's Rating Services and Fitch Ratings were Baa2, BBB, and BBB+, respectively. The interest rate adjustment is dependent on the degree of decrease of the Company's ratings and could range from 0.25% to a maximum of 2.00%. The Company may redeem these notes at its option at the greater of the principal amount of these notes or the present value of the remaining scheduled payments discounted using the effective interest rate on applicable U.S. Treasury bills at the time of repurchase.

At December 27, 2015, as detailed above, the Company's 6.30% Notes mature in 2017. All of the Company's other long-term borrowings have contractual maturities that occur subsequent to 2020. The aggregate principal amount of long-term debt maturing in the next five years is $350,000.