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Borrowings | 12 Months Ended
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Jul. 28, 2012
Borrowings | 10. Borrowings (a) Short-Term Debt The following table summarizes the Company’s short-term debt (in millions, except percentages):
|  | July 28, 2012 |  |  | July 30, 2011 |
|  | Amount |  |  | Weighted-Average Interest Rate |  |  | Amount |  |  | Weighted-Average Interest Rate |
Commercial paper |  | $ | — |  |  |  | — |  |  | $ | 500 |  |  |  | 0.14 | %
Other notes and borrowings |  |  | 31 |  |  |  | 6.72 | % |  |  | 88 |  |  |  | 4.59 | %
Total short-term debt |  | $ | 31 |  |  |  |  |  |  | $ | 588 |  |  |  |  |
In fiscal 2011, the Company established a short-term debt financing program of up to $3.0 billion through the issuance of commercial paper notes. The Company uses the proceeds from the issuance of commercial paper notes for general corporate purposes. Other notes and borrowings in the preceding table consist of notes and credit facilities established with a number of financial institutions that are available to certain foreign subsidiaries of the Company. These notes and credit facilities are subject to various terms and foreign currency market interest rates pursuant to individual financial arrangements between the financing institution and the applicable foreign subsidiary. As of July 28, 2012 and July 30, 2011, the estimated fair value of the short-term debt approximates its carrying value due to the short maturities. (b) Long-Term Debt The following table summarizes the Company’s long-term debt (in millions, except percentages):
|  | July 28, 2012 |  |  | July 30, 2011 |
|  | Amount |  |  | Effective Rate |  |  | Amount |  |  | Effective Rate |
Senior Notes: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Floating-rate notes, due 2014 |  | $ | 1,250 |  |  |  | 0.81 | % |  | $ | 1,250 |  |  |  | 0.60 | %
1.625% fixed-rate notes, due 2014 |  |  | 2,000 |  |  |  | 0.84 | % |  |  | 2,000 |  |  |  | 0.58 | %
2.90% fixed-rate notes, due 2014 |  |  | 500 |  |  |  | 3.11 | % |  |  | 500 |  |  |  | 3.11 | %
5.50% fixed-rate notes, due 2016 |  |  | 3,000 |  |  |  | 3.16 | % |  |  | 3,000 |  |  |  | 3.06 | %
3.15% fixed-rate notes, due 2017 |  |  | 750 |  |  |  | 1.03 | % |  |  | 750 |  |  |  | 0.81 | %
4.95% fixed-rate notes, due 2019 |  |  | 2,000 |  |  |  | 5.08 | % |  |  | 2,000 |  |  |  | 5.08 | %
4.45% fixed-rate notes, due 2020 |  |  | 2,500 |  |  |  | 4.50 | % |  |  | 2,500 |  |  |  | 4.50 | %
5.90% fixed-rate notes, due 2039 |  |  | 2,000 |  |  |  | 6.11 | % |  |  | 2,000 |  |  |  | 6.11 | %
5.50% fixed-rate notes, due 2040 |  |  | 2,000 |  |  |  | 5.67 | % |  |  | 2,000 |  |  |  | 5.67 | %
Total |  |  | 16,000 |  |  |  |  |  |  |  | 16,000 |  |  |  |  |
Other long-term debt |  |  | 10 |  |  |  | 0.19 | % |  |  | — |  |  |  |  |
Unaccreted discount |  |  | (70 | ) |  |  |  |  |  |  | (73 | ) |  |  |  |
Hedge accounting fair value adjustments |  |  | 357 |  |  |  |  |  |  |  | 307 |  |  |  |  |
Total long-term debt |  | $ | 16,297 |  |  |  |  |  |  | $ | 16,234 |  |  |  |  |
To achieve its interest rate risk management objectives, the Company entered into interest rate swaps with an aggregate notional amount of $4.25 billion designated as fair value hedges of certain fixed-rate senior notes. In effect, these swaps convert the fixed interest rates of the fixed-rate notes to floating interest rates based on the London InterBank Offered Rate (“LIBOR”). The gains and losses related to changes in the fair value of the interest rate swaps substantially offset changes in the fair value of the hedged portion of the underlying debt that are attributable to the changes in market interest rates. See Note 11. The effective rates for the fixed-rate debt include the interest on the notes, the accretion of the discount, and, if applicable, adjustments related to hedging. Interest is payable semiannually on each class of the senior fixed-rate notes and payable quarterly on the floating-rate notes. Each of the senior fixed-rate notes is redeemable by the Company at any time, subject to a make-whole premium. The senior notes rank at par with the issued commercial paper notes, as well as any other commercial paper notes that may be issued in the future pursuant to the short-term debt financing program, as discussed earlier under “Short-Term Debt.” As of July 28, 2012, the Company was in compliance with all debt covenants. Future principal payments for long-term debt as of July 28, 2012 are summarized as follows (in millions):
Fiscal Year |  | Amount |
2013 |  | $ | — |
2014 |  |  | 3,260 |
2015 |  |  | 500 |
2016 |  |  | 3,000 |
2017 |  |  | 750 |
Thereafter |  |  | 8,500 |
Total |  | $ | 16,010 |
(c) Credit Facility On February 17, 2012, the Company entered into a credit agreement with certain institutional lenders that provides for a $3.0 billion unsecured revolving credit facility that is scheduled to expire on February 17, 2017. Any advances under the credit agreement will accrue interest at rates that are equal to, based on certain conditions, either (i) the higher of the Federal Funds rate plus 0.50%, Bank of America’s “prime rate” as announced from time to time, or one-month LIBOR plus 1.00%, or (ii) LIBOR plus a margin that is based on the Company’s senior debt credit ratings as published by Standard & Poor’s Financial Services, LLC and Moody’s Investors Service, Inc. The credit agreement requires the Company to comply with certain covenants, including that it maintains an interest coverage ratio as defined in the agreement. As of July 28, 2012, the Company was in compliance with all such required covenants, and the Company had not borrowed any funds under the credit facility. The Company may also, upon the agreement of either the then-existing lenders or additional lenders not currently parties to the agreement, increase the commitments under the credit facility by up to an additional $2.0 billion and/or extend the expiration date of the credit facility up to February 17, 2019. This credit facility replaces the Company’s prior credit facility that was entered into on August 17, 2007, which was terminated in connection with its entering into the new credit facility.

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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 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 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 129 -Paragraph 2, 4 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19, 20, 22 -Article 5 Reference 4: 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 + Details
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