XML 35 R21.htm IDEA: XBRL DOCUMENT
v3.20.2

Borrowings | 3 Months Ended
--- | ---
Oct. 24, 2020
Debt Disclosure [Abstract] |
Borrowings | Borrowings (a)Short-Term Debt The following table summarizes our short-term debt (in millions, except percentages):
| October 24, 2020 |  | July 25, 2020
| Amount |  | Effective Rate |  | Amount |  | Effective Rate
Current portion of long-term debt | $ | 5,002 |  |  | 2.00 | % |  | $ | 3,005 |  |  | 2.07 | %
We have a short-term debt financing program of up to $10.0 billion through the issuance of commercial paper notes. We use the proceeds from the issuance of commercial paper notes for general corporate purposes. The effective rates for the short- and long-term debt include the interest on the notes, the accretion of the discount, the issuance costs, and, if applicable, adjustments related to hedging. (b)Long-Term Debt The following table summarizes our long-term debt (in millions, except percentages):
|  |  | October 24, 2020 |  | July 25, 2020
| Maturity Date |  | Amount |  | Effective Rate |  | Amount |  | Effective Rate
Senior notes: |  |  |  |  |  |  |  |  |
Fixed-rate notes: |  |  |  |  |  |  |  |  |
2.20% | February 28, 2021 |  | $ | 2,500 |  |  | 2.30% |  | $ | 2,500 |  |  | 2.30%
2.90% | March 4, 2021 |  | 500 |  |  | 0.91% |  | 500 |  |  | 0.94%
1.85% | September 20, 2021 |  | 2,000 |  |  | 1.90% |  | 2,000 |  |  | 1.90%
3.00% | June 15, 2022 |  | 500 |  |  | 1.19% |  | 500 |  |  | 1.21%
2.60% | February 28, 2023 |  | 500 |  |  | 2.68% |  | 500 |  |  | 2.68%
2.20% | September 20, 2023 |  | 750 |  |  | 2.27% |  | 750 |  |  | 2.27%
3.625% | March 4, 2024 |  | 1,000 |  |  | 1.03% |  | 1,000 |  |  | 1.06%
3.50% | June 15, 2025 |  | 500 |  |  | 1.35% |  | 500 |  |  | 1.37%
2.95% | February 28, 2026 |  | 750 |  |  | 3.01% |  | 750 |  |  | 3.01%
2.50% | September 20, 2026 |  | 1,500 |  |  | 2.55% |  | 1,500 |  |  | 2.55%
5.90% | February 15, 2039 |  | 2,000 |  |  | 6.11% |  | 2,000 |  |  | 6.11%
5.50% | January 15, 2040 |  | 2,000 |  |  | 5.67% |  | 2,000 |  |  | 5.67%
Total |  |  | 14,500 |  |  |  |  | 14,500 |  |  |
Unaccreted discount/issuance costs |  |  | (86) |  |  |  |  | (88) |  |  |
Hedge accounting fair value adjustments |  |  | 152 |  |  |  |  | 171 |  |  |
Total |  |  | $ | 14,566 |  |  |  |  | $ | 14,583 |  |  |
Reported as: |  |  |  |  |  |  |  |  |
Current portion of long-term debt |  |  | $ | 5,002 |  |  |  |  | $ | 3,005 |  |  |
Long-term debt |  |  | 9,564 |  |  |  |  | 11,578 |  |  |
Total |  |  | $ | 14,566 |  |  |  |  | $ | 14,583 |  |  |
We have entered into interest rate swaps in prior periods with an aggregate notional amount of $2.5 billion designated as fair value hedges of certain of our fixed-rate senior notes. 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. For additional information, see Note 13. Interest is payable semiannually on each class of the senior fixed-rate notes. Each of the senior fixed-rate notes is redeemable by us at any time, subject to a make-whole premium. The senior notes rank at par with the commercial paper notes that may be issued in the future pursuant to our short-term debt financing program, as discussed above under “(a) Short-Term Debt.” As of October 24, 2020, we were in compliance with all debt covenants. As of October 24, 2020, future principal payments for long-term debt, including the current portion, are summarized as follows (in millions):
Fiscal Year | Amount
2021 (remaining nine months) | $ | 3,000 |
2022 | 2,500 |
2023 | 500 |
2024 | 1,750 |
2025 | 500 |
Thereafter | 6,250 |
Total | $ | 14,500 |
(c)Credit Facility On May 15, 2020, we entered into a 364-day credit agreement with certain institutional lenders that provides for a $2.75 billion unsecured revolving credit facility that is scheduled to expire on May 14, 2021. The credit agreement is structured as an amendment and restatement of our five-year credit facility which would have terminated on May 15, 2020, the end of its five-year term. As of October 24, 2020, we were in compliance with the required interest coverage ratio and the other covenants, and we had not borrowed any funds under the credit facility. Any advances under the credit agreement will accrue interest at rates that are equal to, based on certain conditions, either (i) the highest of (a) the Federal Funds rate plus 0.50%, (b) Bank of America’s “prime rate” as announced from time to time, or (c) LIBOR, or a comparable or successor rate that is approved by the Administrative Agent (“Eurocurrency Rate”), for an interest period of one-month plus 1.00%, or (ii) the Eurocurrency Rate, plus a margin that is based on our senior debt credit ratings as published by Standard & Poor’s Financial Services, LLC and Moody’s Investors Service, Inc., provided that in no event will the Eurocurrency Rate be less than 0.25%. We 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. The credit agreement requires that we comply with certain covenants, including that we maintain an interest coverage ratio as defined in the agreement.

X
- References No definition available. + Details
Name: | us-gaap_DebtDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_DebtDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration