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Debt | 9 Months Ended
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Jul. 01, 2017
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 July 1, 2017 and September 24, 2016, the Company had $12.0 billion and $8.1 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 1.01% as of July 1, 2017 and 0.45% as of September 24, 2016. The following table provides a summary of cash flows associated with the issuance and maturities of Commercial Paper for the nine months ended July 1, 2017 and June 25, 2016 (in millions):
| Nine Months Ended
| July 1, 2017 |  | June 25, 2016
Maturities less than 90 days: |  |  |
Proceeds from/(Repayments of) commercial paper, net | $ | (143 | ) |  | $ | 4,154 |
Maturities greater than 90 days: |  |  |
Proceeds from commercial paper | 12,633 |  |  | 1,846 |
Repayments of commercial paper | (8,624 | ) |  | (2,008 | )
Proceeds from/(Repayments of) commercial paper, net | 4,009 |  |  | (162 | )
Total change in commercial paper, net | $ | 3,866 |  |  | $ | 3,992 |
Term Debt As of July 1, 2017, the Company had outstanding floating- and fixed-rate notes with varying maturities for an aggregate principal amount of $96.6 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 July 1, 2017 and September 24, 2016:
| Maturities |  | July 1, 2017 |  | September 24, 2016
| Amount (in millions) |  | Effective Interest Rate |  | Amount (in millions) |  | Effective Interest Rate
2013 debt issuance of $17.0 billion: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Floating-rate notes | 2018 |  | 2018 |  | $ | 2,000 |  |  |  | 1.10% |  | 1.10 | % |  | $ | 2,000 |  |  |  | 1.10% |  | 1.10 | %
Fixed-rate 1.000% – 3.850% notes | 2018 | – | 2043 |  | 12,500 |  |  |  | 1.08% | – | 3.91 | % |  | 12,500 |  |  |  | 1.08% | – | 3.91 | %
2014 debt issuance of $12.0 billion: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Floating-rate notes | 2019 | – | 2019 |  | 1,000 |  |  |  | 1.48% |  | 1.48 | % |  | 2,000 |  |  |  | 0.86% | – | 1.09 | %
Fixed-rate 2.100% – 4.450% notes | 2019 | – | 2044 |  | 8,500 |  |  |  | 1.48% | – | 4.48 | % |  | 10,000 |  |  |  | 0.85% | – | 4.48 | %
2015 debt issuances of $27.3 billion: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Floating-rate notes | 2019 | – | 2020 |  | 1,532 |  |  |  | 1.43% | – | 1.87 | % |  | 1,781 |  |  |  | 0.87% | – | 1.87 | %
Fixed-rate 0.350% – 4.375% notes | 2019 | – | 2045 |  | 24,259 |  |  |  | 0.28% | – | 4.51 | % |  | 25,144 |  |  |  | 0.28% | – | 4.51 | %
2016 debt issuances of $24.9 billion: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Floating-rate notes | 2019 | – | 2021 |  | 1,350 |  |  |  | 1.31% | – | 2.32 | % |  | 1,350 |  |  |  | 0.91% | – | 1.95 | %
Fixed-rate 1.100% – 4.650% notes | 2018 | – | 2046 |  | 23,610 |  |  |  | 1.13% | – | 4.78 | % |  | 23,609 |  |  |  | 1.13% | – | 4.58 | %
Second quarter 2017 debt issuance of $10.0 billion: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Floating-rate notes |  |  | 2019 |  | 500 |  |  |  |  |  | 1.26 | % |  | — |  |  |  |  |  | — | %
Floating-rate notes |  |  | 2020 |  | 500 |  |  |  |  |  | 1.38 | % |  | — |  |  |  |  |  | — | %
Floating-rate notes |  |  | 2022 |  | 1,000 |  |  |  |  |  | 1.68 | % |  | — |  |  |  |  |  | — | %
Fixed-rate 1.550% notes |  |  | 2019 |  | 500 |  |  |  |  |  | 1.59 | % |  | — |  |  |  |  |  | — | %
Fixed-rate 1.900% notes |  |  | 2020 |  | 1,000 |  |  |  |  |  | 1.38 | % |  | — |  |  |  |  |  | — | %
Fixed-rate 2.500% notes |  |  | 2022 |  | 1,500 |  |  |  |  |  | 1.67 | % |  | — |  |  |  |  |  | — | %
Fixed-rate 3.000% notes |  |  | 2024 |  | 1,750 |  |  |  |  |  | 1.98 | % |  | — |  |  |  |  |  | — | %
Fixed-rate 3.350% notes |  |  | 2027 |  | 2,250 |  |  |  |  |  | 2.12 | % |  | — |  |  |  |  |  | — | %
Fixed-rate 4.250% notes |  |  | 2047 |  | 1,000 |  |  |  |  |  | 4.26 | % |  | — |  |  |  |  |  | — | %
Second quarter 2017 debt issuance of $1.0 billion: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed-rate 4.300% notes |  |  | 2047 |  | 1,000 |  |  |  |  |  | 4.30 | % |  | — |  |  |  |  |  | — | %
Third quarter 2017 debt issuance of $7.0 billion: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Floating-rate notes |  |  | 2020 |  | 500 |  |  |  |  |  | 1.25 | % |  | — |  |  |  |  |  | — | %
Floating-rate notes |  |  | 2022 |  | 750 |  |  |  |  |  | 1.53 | % |  | — |  |  |  |  |  | — | %
Fixed-rate 1.800% notes |  |  | 2020 |  | 1,000 |  |  |  |  |  | 1.84 | % |  | — |  |  |  |  |  | — | %
Fixed-rate 2.300% notes |  |  | 2022 |  | 1,000 |  |  |  |  |  | 2.34 | % |  | — |  |  |  |  |  | — | %
Fixed-rate 2.850% notes |  |  | 2024 |  | 1,750 |  |  |  |  |  | 2.16 | % |  | — |  |  |  |  |  | — | %
Fixed-rate 3.200% notes |  |  | 2027 |  | 2,000 |  |  |  |  |  | 2.34 | % |  | — |  |  |  |  |  | — | %
Third quarter 2017 euro-denominated debt issuance of €2.5 billion: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed-rate 0.875% notes |  |  | 2025 |  | 1,419 |  |  |  |  |  | 3.03 | % |  | — |  |  |  |  |  | — | %
Fixed-rate 1.375% notes |  |  | 2029 |  | 1,419 |  |  |  |  |  | 3.37 | % |  | — |  |  |  |  |  | — | %
Third quarter 2017 debt issuance of $1.0 billion: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed-rate 3.000% notes |  |  | 2027 |  | 1,000 |  |  |  |  |  | 3.03 | % |  | — |  |  |  |  |  | — | %
Total term debt |  |  |  |  | 96,589 |  |  |  |  |  |  |  | 78,384 |  |  |  |  |  |
Unamortized premium/(discount) and issuance costs, net |  |  |  |  | (210 | ) |  |  |  |  |  |  | (174 | ) |  |  |  |  |
Hedge accounting fair value adjustments |  |  |  |  | (20 | ) |  |  |  |  |  |  | 717 |  |  |  |  |  |
Less: Current portion of long-term debt |  |  |  |  | (6,495 | ) |  |  |  |  |  |  | (3,500 | ) |  |  |  |  |
Total long-term debt |  |  |  |  | $ | 89,864 |  |  |  |  |  |  |  | $ | 75,427 |  |  |  |  |  |
To manage interest rate risk on certain of its fixed-rate notes issued during the third quarter of 2017 and maturing in 2024 and 2027, the Company entered into interest rate swaps with an aggregate notional amount of $2.75 billion, which effectively converted the fixed interest rates on a portion of these notes to floating interest rates. The Company also hedged its entire third quarter 2017 issuance of €2.5 billion of euro-denominated notes by entering into foreign currency swaps to effectively convert these notes to U.S. dollar-denominated notes. To manage interest rate risk on certain of its fixed-rate notes issued during the second quarter of 2017 and maturing in 2020, 2022, 2024 and 2027, the Company entered into interest rate swaps with an aggregate notional amount of $6.5 billion, which effectively converted the fixed interest rates on these notes to floating interest rates. A portion of the Company’s Japanese yen-denominated notes is designated as a hedge of the foreign currency exposure of the Company’s 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 July 1, 2017 and September 24, 2016, the carrying value of the debt designated as a net investment hedge was $1.5 billion and $1.9 billion, respectively. 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 or premium and, if applicable, adjustments related to hedging. The Company recognized $574 million and $1.6 billion of interest expense on its term debt for the three- and nine-month periods ended July 1, 2017, respectively. The Company recognized $393 million and $975 million of interest expense on its term debt for the three- and nine-month periods ended June 25, 2016, respectively. As of July 1, 2017 and September 24, 2016, the fair value of the Company’s Notes, based on Level 2 inputs, was $98.3 billion and $81.7 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 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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