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Debt | 12 Months Ended
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Sep. 24, 2016
Debt Disclosure [Abstract] |
Debt | Debt Commercial Paper The Company issues unsecured short-term promissory notes (“Commercial Paper”) pursuant to a commercial paper program. The Company uses net proceeds from the commercial paper program for general corporate purposes, including dividends and share repurchases. As of September 24, 2016 and September 26, 2015, the Company had $8.1 billion and $8.5 billion of Commercial Paper outstanding, respectively, with maturities generally less than nine months. The weighted-average interest rate of the Company’s Commercial Paper was 0.45% as of September 24, 2016 and 0.14% as of September 26, 2015. The following table provides a summary of cash flows associated with the issuance and maturities of Commercial Paper for 2016 and 2015 (in millions):
| 2016 |  | 2015
Maturities less than 90 days: |  |  |
Proceeds from (repayments of) commercial paper, net | $ | (869 | ) |  | $ | 5,293 |
Maturities greater than 90 days: |  |  |
Proceeds from commercial paper | 3,632 |  |  | 3,851 |
Repayments of commercial paper | (3,160 | ) |  | (6,953 | )
Maturities greater than 90 days, net | 472 |  |  | (3,102 | )
Total change in commercial paper, net | $ | (397 | ) |  | $ | 2,191 |
Long-Term Debt As of September 24, 2016, the Company had outstanding floating- and fixed-rate notes with varying maturities for an aggregate principal amount of $78.4 billion (collectively the “Notes”). The Notes are senior unsecured obligations, and interest is payable in arrears, quarterly for the U.S. dollar-denominated and Australian dollar-denominated floating-rate notes, semi-annually for the U.S. dollar-denominated, Australian dollar-denominated, British pound-denominated and Japanese yen-denominated fixed-rate notes and annually for the euro-denominated and Swiss franc-denominated fixed-rate notes. The following table provides a summary of the Company’s term debt as of September 24, 2016 and September 26, 2015:
| Maturities |  | 2016 |  | 2015
| Amount (in millions) |  | Effective Interest Rate |  | Amount (in millions) |  | Effective Interest Rate
2013 debt issuance of $17.0 billion: |  |  |  |  |  |  |  |  |
Floating-rate notes | 2018 |  | $ | 2,000 |  |  | 1.10% |  |  | $ | 3,000 |  |  | 0.51% - 1.10% |
Fixed-rate 1.000% - 3.850% notes | 2018 - 2043 |  | 12,500 |  |  | 1.08% - 3.91% |  |  | 14,000 |  |  | 0.51% - 3.91% |
2014 debt issuance of $12.0 billion: |  |  |  |  |  |  |  |  |
Floating-rate notes | 2017 - 2019 |  | 2,000 |  |  | 0.86% - 1.09% |  |  | 2,000 |  |  | 0.37% - 0.60% |
Fixed-rate 1.050% - 4.450% notes | 2017 - 2044 |  | 10,000 |  |  | 0.85% - 4.48% |  |  | 10,000 |  |  | 0.37% - 4.48% |
2015 debt issuances of $27.3 billion: |  |  |  |  |  |  |  |  |
Floating-rate notes | 2017 - 2020 |  | 1,781 |  |  | 0.87% - 1.87% |  |  | 1,743 |  |  | 0.36% - 1.87% |
Fixed-rate 0.350% - 4.375% notes | 2017 - 2045 |  | 25,144 |  |  | 0.28% - 4.51% |  |  | 24,958 |  |  | 0.28% - 4.51% |
Second quarter 2016 debt issuance of $15.5 billion: |  |  |  |  |  |  |  |  |
Floating-rate notes | 2019 |  | 500 |  |  | 1.64 | % |  | — |  |  | — |
Floating-rate notes | 2021 |  | 500 |  |  | 1.95 | % |  | — |  |  | — |
Fixed-rate 1.300% notes | 2018 |  | 500 |  |  | 1.32 | % |  | — |  |  | — |
Fixed-rate 1.700% notes | 2019 |  | 1,000 |  |  | 1.71 | % |  | — |  |  | — |
Fixed-rate 2.250% notes | 2021 |  | 3,000 |  |  | 1.91 | % |  | — |  |  | — |
Fixed-rate 2.850% notes | 2023 |  | 1,500 |  |  | 2.58 | % |  | — |  |  | — |
Fixed-rate 3.250% notes | 2026 |  | 3,250 |  |  | 2.51 | % |  | — |  |  | — |
Fixed-rate 4.500% notes | 2036 |  | 1,250 |  |  | 4.54 | % |  | — |  |  | — |
Fixed-rate 4.650% notes | 2046 |  | 4,000 |  |  | 4.58 | % |  | — |  |  | — |
Third quarter 2016 Australian dollar-denominated debt issuance of A$1.4 billion: |  |  |  |  |  |  |  |  |
Fixed-rate 2.650% notes | 2020 |  | 493 |  |  | 1.92 | % |  | — |  |  | — |
Fixed-rate 3.350% notes | 2024 |  | 342 |  |  | 2.61 | % |  | — |  |  | — |
Fixed-rate 3.600% notes | 2026 |  | 247 |  |  | 2.84 | % |  | — |  |  | — |
Third quarter 2016 debt issuance of $1.4 billion: |  |  |  |  |  |  |  |  |
Fixed-rate 4.150% notes | 2046 |  | 1,377 |  |  | 4.15 | % |  | — |  |  | — |
Fourth quarter 2016 debt issuance of $7.0 billion: |  |  |  |  |  |  |  |  |
Floating-rate notes | 2019 |  | 350 |  |  | 0.91 | % |  | — |  |  | — |
Fixed-rate 1.100% notes | 2019 |  | 1,150 |  |  | 1.13 | % |  | — |  |  | — |
Fixed-rate 1.550% notes | 2021 |  | 1,250 |  |  | 1.40 | % |  | — |  |  | — |
Fixed-rate 2.450% notes | 2026 |  | 2,250 |  |  | 2.15 | % |  | — |  |  | — |
Fixed-rate 3.850% notes | 2046 |  | 2,000 |  |  | 3.86 | % |  | — |  |  | — |
Total term debt |  |  | 78,384 |  |  |  |  | 55,701 |  |  |
Unamortized premium/(discount) and issuance costs, net |  |  | (174 | ) |  |  |  | (248 | ) |  |
Hedge accounting fair value adjustments |  |  | 717 |  |  |  |  | 376 |  |  |
Less: Current portion of long-term debt, net |  |  | (3,500 | ) |  |  |  | (2,500 | ) |  |
Total long-term debt |  |  | $ | 75,427 |  |  |  |  | $ | 53,329 |  |  |
To manage foreign currency risk associated with the Australian dollar-denominated notes issued in the third quarter of 2016, the Company entered into currency swaps with an aggregate notional amount of $1.0 billion, which effectively converted these notes to U.S. dollar-denominated notes. To manage interest rate risk on the U.S. dollar-denominated fixed-rate notes issued in the second quarter of 2016 and maturing in 2021, 2023 and 2026, the Company entered into interest rate swaps with an aggregate notional amount of $5.0 billion. To manage interest rate risk on the U.S. dollar-denominated fixed-rate notes issued in the fourth quarter of 2016 and maturing in 2021 and 2026, the Company entered into interest rate swaps with an aggregate notional amount of $1.8 billion. These interest rate swaps effectively converted a portion of the U.S. dollar-denominated fixed-rate notes to floating interest rate notes. As of September 24, 2016, ¥195.5 billion of the Japanese yen-denominated notes was designated as a hedge of the foreign currency exposure of its net investment in a foreign operation. The foreign currency transaction gain or loss on the Japanese yen-denominated debt designated as a hedge is recorded in OCI as a part of the cumulative translation adjustment. As of September 24, 2016, the carrying value of the debt designated as a net investment hedge was $1.9 billion. For further discussion regarding the Company’s use of derivative instruments see the Derivative Financial Instruments section of Note 2, “Financial Instruments.” The effective interest rates for the Notes include the interest on the Notes, amortization of the discount and, if applicable, adjustments related to hedging. The Company recognized $1.4 billion, $722 million and $381 million of interest expense on its term debt for 2016, 2015 and 2014, respectively. The future principal payments for the Company’s Notes as of September 24, 2016 are as follows (in millions):
2017 | $ | 3,500 |
2018 | 6,500 |
2019 | 6,834 |
2020 | 6,454 |
2021 | 7,750 |
Thereafter | 47,346 |
Total term debt | $ | 78,384 |
As of September 24, 2016 and September 26, 2015, the fair value of the Company’s Notes, based on Level 2 inputs, was $81.7 billion and $54.9 billion, respectively.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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