Long-Term Debt

At December 31, 2015 and 2014, Altria Group, Inc.’s long-term debt consisted of the following:



(in millions)	2015		2014
Notes, 2.625% to 10.20%, interest payable semi-annually, due through 2044⁽¹⁾	$	12,861	$	14,651
Debenture, 7.75%, interest payable semi-annually, due 2027	42		42
Other	16		—
	12,919		14,693
Less current portion of long-term debt	4		1,000
	$	12,915	$	13,693

⁽¹⁾Weighted-average coupon interest rate of 5.5% and 5.7% at December 31, 2015 and 2014, respectively.

Aggregate maturities of long-term debt are as follows:



(in millions)
2016	$	4
2017	4
2018	867
2019	1,148
2020	1,000
2021	1,500
Thereafter	8,442
	12,965
Less debt discounts	46
	$	12,919

Altria Group, Inc.’s estimate of the fair value of its debt is based on observable market information derived from a third party pricing source and is classified in Level 2 of the fair value hierarchy. The aggregate fair value of Altria Group, Inc.’s total long-term debt at December 31, 2015 and 2014, was $14.5 billion and $17.0 billion, respectively, as compared with its carrying value of $12.9 billion and $14.7 billion, respectively.

▪Altria Group, Inc. Senior Notes: The notes of Altria Group, Inc. are senior unsecured obligations and rank equally in right of payment with all of Altria Group, Inc.’s existing and future senior unsecured indebtedness. Upon the occurrence of both (i) a change of control of Altria Group, Inc. and (ii) the notes ceasing to be rated investment grade by each of Moody’s, Standard & Poor’s and Fitch Ratings Ltd. within a specified time period, Altria Group, Inc. will be required to make an offer to purchase the notes at a price equal to 101% of the aggregate principal amount of such notes, plus accrued and unpaid interest to the date of repurchase as and to the extent set forth in the terms of the notes.

With respect to $3.4 billion aggregate principal amount of Altria Group, Inc.’s senior unsecured long-term notes issued in 2009 and 2008, the interest rate payable on each series of notes is subject to adjustment from time to time if the rating assigned to the notes of such series by Moody’s or Standard & Poor’s is downgraded (or subsequently upgraded) as and to the extent set forth in the terms of the notes.

During 2015, Altria Group, Inc. repaid in full at maturity senior unsecured notes in the aggregate principal amount of $1.0 billion.

The obligations of Altria Group, Inc. under the notes are guaranteed by PM USA as further discussed in Note 19. Condensed Consolidating Financial Information.

▪Debt Tender Offers and Redemption: During 2015 and 2013, Altria Group, Inc. completed debt tender offers to purchase for cash certain of its senior unsecured notes in aggregate principal amounts of $0.8 billion and $2.1 billion, respectively.

Details of these debt tender offers were as follows:



(in millions)	2015		2013
Notes Purchased
9.95% Notes due 2038	$	—	$	818
10.20% Notes due 2039	—		782
9.70% Notes due 2018	793		293
9.25% Notes due 2019	—		207
Total	$	793	$	2,100

During 2014, UST redeemed in full its $300 million (aggregate principal amount) 5.75% senior notes due 2018.

As a result of the Altria Group, Inc. debt tender offers and the UST debt redemption, pre-tax losses on early extinguishment of debt were recorded as follows:



(in millions)	2015		2014		2013
Premiums and fees	$	226	$	44	$	1,054
Write-off of unamortized debt discounts and debt issuance costs	2		—		30
Total	$	228	$	44	$	1,084