Long-Term Debt

At December 31, 2018 and 2017, Altria’s long-term debt consisted of the following:



(in millions)	2018		2017
Notes, 2.625% to 10.20%, interest payable semi-annually, due through 2046⁽¹⁾	$	13,000	$	13,852
Debenture, 7.75%, interest payable semi-annually, due 2027	42		42
	13,042		13,894
Less current portion of long-term debt	1,144		864
	$	11,898	$	13,030

⁽¹⁾Weighted-average coupon interest rate of 4.6% and 4.9% at December 31, 2018 and 2017, respectively.

At December 31, 2018, aggregate maturities of Altria’s long-term debt were as follows:



(in millions)
2019	$	1,144
2020	1,000
2021	1,500
2022	1,900
2023	350
Thereafter	7,259
	13,153
Less: debt issuance costs	60
debt discounts	51
	$	13,042

Altria’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’s total long-term debt at December 31, 2018 and 2017, was $12.5 billion and $15.3 billion, respectively, as compared with its carrying value of $13.0 billion and $13.9 billion, respectively.

At December 31, 2018 and 2017, accrued interest on long-term debt of $207 million and $219 million, respectively, was included in other accrued liabilities on Altria’s consolidated balance sheets.

▪Altria Senior Notes: The notes of Altria are senior unsecured obligations and rank equally in right of payment with all of Altria’s existing and future senior unsecured indebtedness. Upon the occurrence of both (i) a change of control of Altria 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 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.

During 2018, Altria repaid in full at maturity notes in the aggregate principal amount of $864 million.

The obligations of Altria under the notes are guaranteed by PM USA as further discussed in Note 20. Condensed Consolidating Financial Information.

▪Debt Tender Offer: During 2016, Altria completed a debt tender offer to purchase for cash certain of its notes in aggregate principal amount of $0.9 billion.

Details of the debt tender offer and the associated pre-tax loss on early extinguishment of debt recorded by Altria were as follows:



(in millions)	2016
Notes Purchased
9.95% Notes due 2038	$	441
10.20% Notes due 2039	492
Total	$	933



Pre-tax Loss on Early Extinguishment of Debt
Premiums and fees	$	809
Write-off of unamortized debt discounts and debt issuance costs	14
Total	$	823