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Debt | 12 Months Ended
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Sep. 26, 2020
Debt Disclosure [Abstract] |
Debt | Debt Commercial Paper and Repurchase Agreements 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 26, 2020 and September 28, 2019, the Company had $5.0 billion and $6.0 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 0.62% and 2.24% as of September 26, 2020 and September 28, 2019, respectively. The following table provides a summary of cash flows associated with the issuance and maturities of Commercial Paper for 2020, 2019 and 2018 (in millions):
| 2020 |  | 2019 |  | 2018
Maturities 90 days or less: |  |  |  |  |
Proceeds from/(Repayments of) commercial paper, net | $ | 100 |  |  | $ | (3,248) |  |  | $ | 1,044 |
Maturities greater than 90 days: |  |  |  |  |
Proceeds from commercial paper | 6,185 |  |  | 13,874 |  |  | 14,555 |
Repayments of commercial paper | (7,248) |  |  | (16,603) |  |  | (15,636) |
Repayments of commercial paper, net | (1,063) |  |  | (2,729) |  |  | (1,081) |
Total repayments of commercial paper, net | $ | (963) |  |  | $ | (5,977) |  |  | $ | (37) |
In 2020, the Company entered into agreements to sell certain of its marketable securities with a promise to repurchase the securities at a specified time and amount (“Repos”). Due to the Company’s continuing involvement with the marketable securities, the Company accounted for its Repos as collateralized borrowings. The Company entered into $5.2 billion of Repos during 2020, all of which had been settled as of September 26, 2020. Term Debt As of September 26, 2020, the Company had outstanding floating- and fixed-rate notes with varying maturities for an aggregate principal amount of $106.1 billion (collectively the “Notes”). The Notes are senior unsecured obligations and interest is payable in arrears. The following table provides a summary of the Company’s term debt as of September 26, 2020 and September 28, 2019:
| Maturities (calendar year) |  | 2020 |  | 2019
| Amount (in millions) |  | Effective Interest Rate |  | Amount (in millions) |  | Effective Interest Rate
2013 – 2019 debt issuances: |  |  |  |  |  |  |  |  |
Floating-rate notes | 2021 – 2022 |  | $ | 2,250 |  |  | 0.60% – 1.39% |  | $ | 4,250 |  |  | 2.25% – 3.28%
Fixed-rate 0.375% – 4.650% notes | 2020 – 2049 |  | 87,487 |  |  | 0.28% – 4.78% |  | 97,429 |  |  | 0.28% – 4.78%
First quarter 2020 debt issuance of €2.0 billion: |  |  |  |  |  |  |  |  |
Fixed-rate 0.000% – 0.500% notes | 2025 – 2031 |  | 2,341 |  |  | 0.03% – 0.56% |  | — |  |  | — | %
Third quarter 2020 debt issuance of $8.5 billion: |  |  |  |  |  |  |  |  |
Fixed-rate 0.750% – 2.650% notes | 2023 – 2050 |  | 8,500 |  |  | 0.84% – 2.72% |  | — |  |  | — | %
Fourth quarter 2020 debt issuance of $5.5 billion: |  |  |  |  |  |  |  |  |
Fixed-rate 0.550% – 2.550% notes | 2025 – 2060 |  | 5,500 |  |  | 0.60% – 2.59% |  | — |  |  | — | %
Total term debt |  |  | 106,078 |  |  |  |  | 101,679 |  |  |
Unamortized premium/(discount) and issuance costs, net |  |  | (314) |  |  |  |  | (224) |  |  |
Hedge accounting fair value adjustments |  |  | 1,676 |  |  |  |  | 612 |  |  |
Less: Current portion of term debt |  |  | (8,773) |  |  |  |  | (10,260) |  |  |
Total non-current portion of term debt |  |  | $ | 98,667 |  |  |  |  | $ | 91,807 |  |  |
To manage interest rate risk on certain of its U.S. dollar–denominated fixed- or floating-rate notes, the Company has entered into interest rate swaps to effectively convert the fixed interest rates to floating interest rates or the floating interest rates to fixed interest rates on a portion of these notes. Additionally, to manage foreign currency risk on certain of its foreign currency–denominated notes, the Company has entered into foreign currency swaps to effectively convert these notes to U.S. dollar–denominated notes. As of September 28, 2019, a portion of the Company’s Japanese yen–denominated notes with a carrying value of $1.0 billion was designated as a hedge of the foreign currency exposure of the Company’s net investment in a foreign operation. The Company’s Japanese yen–denominated notes matured during 2020 and the associated net investment hedges were terminated. For further discussion regarding the Company’s use of derivative instruments, refer to the Derivative Financial Instruments section of Note 3, “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 $2.8 billion, $3.2 billion and $3.0 billion of interest cost on its term debt for 2020, 2019 and 2018, respectively. The future principal payments for the Company’s Notes as of September 26, 2020, are as follows (in millions):
2021 | $ | 8,750 |
2022 | 9,569 |
2023 | 11,389 |
2024 | 10,115 |
2025 | 10,914 |
Thereafter | 55,341 |
Total term debt | $ | 106,078 |
As of September 26, 2020 and September 28, 2019, the fair value of the Company’s Notes, based on Level 2 inputs, was $117.1 billion and $107.5 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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