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Financing Arrangements | 6 Months Ended
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Oct. 30, 2020
Debt Disclosure [Abstract] |
Financing Arrangements | Financing Arrangements Commercial Paper The Company maintains commercial paper programs that allow the Company to issue U.S. dollar or Euro-denominated unsecured commercial paper notes. The aggregate amount outstanding at any time under the commercial paper programs may not exceed the equivalent of $3.5 billion. No commercial paper was outstanding at both October 30, 2020 and April 24, 2020. The issuance of commercial paper reduces the amount of credit available under the Company’s existing Credit Facility, as defined below. Line of Credit The Company has a $3.5 billion five-year unsecured revolving credit facility (Credit Facility), which provides back-up funding for the commercial paper programs described above. The Credit Facility includes a multi-currency borrowing feature for certain specified foreign currencies. At October 30, 2020 and April 24, 2020, no amounts were outstanding under the Credit Facility. Interest rates on advances on the Credit Facility are determined by a pricing matrix, based on the Company’s long-term debt ratings, assigned by Standard & Poor’s Ratings Services and Moody’s Investors Service. Facility fees are payable on the Credit Facility and are determined in the same manner as the interest rates. The agreement also contains customary covenants, all of which the Company was in compliance with at October 30, 2020. Debt Obligations The Company's debt obligations consisted of the following:
(in millions) |  | Maturity by Fiscal Year |  | October 30, 2020 |  | April 24, 2020
Current debt obligations |  | 2021 |  | $ | 4,041 |  |  | $ | 2,776 |
Long-term debt |  |  |  |  |  |
3.150 percent seven-year 2015 senior notes |  | 2022 |  | — |  |  | 1,534 |
3.200 percent ten-year 2012 senior notes |  | 2023 |  | — |  |  | 650 |
0.000 percent four-year 2019 senior notes |  | 2023 |  | 886 |  |  | 815 |
0.375 percent four-year 2019 senior notes |  | 2023 |  | 1,772 |  |  | 1,631 |
0.000 percent two-year 2020 senior notes |  | 2023 |  | 1,477 |  |  | — |
2.750 percent ten-year 2013 senior notes |  | 2023 |  | — |  |  | 530 |
2.950 percent ten-year 2013 senior notes |  | 2024 |  | — |  |  | 310 |
3.625 percent ten-year 2014 senior notes |  | 2024 |  | — |  |  | 432 |
3.500 percent ten-year 2015 senior notes |  | 2025 |  | 1,890 |  |  | 2,700 |
0.250 percent seven-year 2019 senior notes |  | 2026 |  | 1,181 |  |  | 1,087 |
0.000 percent five-year 2020 senior notes |  | 2026 |  | 1,181 |  |  | — |
1.125 percent eight-year 2019 senior notes |  | 2027 |  | 1,772 |  |  | 1,631 |
3.350 percent ten-year 2017 senior notes |  | 2027 |  | 368 |  |  | 368 |
0.375 percent eight-year 2020 senior notes |  | 2029 |  | 1,181 |  |  | — |
1.625 percent twelve-year 2019 senior notes |  | 2031 |  | 1,181 |  |  | 1,087 |
1.000 percent thirteen-year 2019 senior notes |  | 2032 |  | 1,181 |  |  | 1,087 |
0.750 percent twelve-year 2020 senior notes |  | 2033 |  | 1,181 |  |  | — |
4.375 percent twenty-year 2015 senior notes |  | 2035 |  | 1,932 |  |  | 1,932 |
6.550 percent thirty-year 2007 senior notes |  | 2038 |  | 253 |  |  | 253 |
2.250 percent twenty-year 2019 senior notes |  | 2039 |  | 1,181 |  |  | 1,087 |
6.500 percent thirty-year 2009 senior notes |  | 2039 |  | 158 |  |  | 158 |
1.500 percent twenty-year 2019 senior notes |  | 2040 |  | 1,181 |  |  | 1,087 |
5.550 percent thirty-year 2010 senior notes |  | 2040 |  | 224 |  |  | 224 |
1.375 percent twenty-year 2020 senior notes |  | 2041 |  | 1,181 |  |  | — |
4.500 percent thirty-year 2012 senior notes |  | 2042 |  | 105 |  |  | 105 |
4.000 percent thirty-year 2013 senior notes |  | 2043 |  | 305 |  |  | 305 |
4.625 percent thirty-year 2014 senior notes |  | 2044 |  | 127 |  |  | 127 |
4.625 percent thirty-year 2015 senior notes |  | 2045 |  | 1,813 |  |  | 1,813 |
1.750 percent thirty-year 2019 senior notes |  | 2050 |  | 1,181 |  |  | 1,087 |
1.625 percent thirty-year 2020 senior notes |  | 2051 |  | 1,181 |  |  | — |
Bank borrowings |  | 2022 |  | 43 |  |  | 55 |
Finance lease obligations |  | 2022 - 2035 |  | 56 |  |  | 45 |
Deferred financing costs |  | 2021 - 2051 |  | (133) |  |  | (104) |
Debt discount, net |  | 2021 - 2051 |  | (72) |  |  | (15) |
Long-term debt |  |  |  | $ | 25,967 |  |  | $ | 22,021 |
Senior Notes The Company has outstanding unsecured senior obligations, described as senior notes in the tables above (collectively, the Senior Notes). The Senior Notes rank equally with all other unsecured and unsubordinated indebtedness of the Company. The indentures under which the Senior Notes were issued contain customary covenants, all of which the Company remained in compliance with at October 30, 2020. In June 2019, Medtronic Luxco issued six tranches of Euro-denominated Senior Notes with an aggregate principal of €5.0 billion, with maturities ranging from fiscal year 2021 to fiscal year 2050, resulting in cash proceeds of approximately $5.6 billion, net of discounts and issuance costs. The Company used the net proceeds of the offering to fund the cash tender offer and early redemption of $5.2 billion of Medtronic Inc., CIFSA, and Medtronic Luxco Senior Notes for $5.6 billion of total consideration. The Company recognized a loss on debt extinguishment of $413 million during the first quarter of fiscal year 2020, which primarily included cash premiums and accelerated amortization of deferred financing costs and debt discounts and premiums. The loss was recognized in interest expense in the consolidated statement of income for the six months ended October 25, 2019. In September 2020, Medtronic Luxco issued an additional six tranches of Euro-denominated Senior Notes with an aggregate principal of €6.3 billion, with maturities ranging from fiscal year 2023 to fiscal year 2051, resulting in cash proceeds of approximately $7.2 billion, net of discounts and issuance costs. The Company used the net proceeds of the offering to fund the early redemption of $4.3 billion of Medtronic Inc. and CIFSA Senior Notes and €1.5 billion of Medtronic Luxco Senior Notes for $6.3 billion of total consideration in October 2020. Additionally, the Company intends to use the proceeds to repay its €750 million floating rate senior notes at maturity in March 2021. The Company recognized a loss on debt extinguishment of $308 million during the current quarter, which primarily included cash premiums and accelerated amortization of deferred financing costs and debt discounts and premiums. The loss was recognized in interest expense in the consolidated statements of income for the three and six months ended October 30, 2020. The Euro-denominated debt issued in June 2019 and September 2020 is designated as a net investment hedge of certain of the Company's European operations. Refer to Note 8 for additional information regarding the net investment hedge. Term Loan Agreements On May 12, 2020, Medtronic Luxco entered into a term loan agreement (Loan Agreement) by and among Medtronic Luxco, Medtronic plc, Medtronic, Inc., and Mizuho Bank, Ltd. as administrative agent and as lender. The Loan Agreement provides an unsecured term loan in an aggregate principal amount of up to ¥300 billion, or approximately $2.8 billion, with a term of six months, which may be extended for an additional six months at Medtronic Luxco’s option. On May 13, 2020, Medtronic Luxco borrowed the entire amount of the term loan under the Loan Agreement. Borrowings under the Loan Agreement will bear interest at the TIBOR Rate (as defined in the Loan Agreement) plus a margin of 0.50% per annum. Medtronic plc and Medtronic, Inc. have guaranteed the obligations of Medtronic Luxco under the Loan Agreement. On November 12, 2020, the Company exercised its option to extend the term loan for an additional six months. The Japanese Yen-denominated debt is designated as a net investment hedge of certain of our Japanese operations. Financial Instruments Not Measured at Fair Value At October 30, 2020, the estimated fair value of the Company’s Senior Notes was $29.9 billion compared to a principal value of $27.0 billion. At April 24, 2020, the estimated fair value was $27.1 billion compared to a principal value of $24.5 billion. The fair value was estimated using quoted market prices for the publicly registered Senior Notes, which are classified as Level 2 within the fair value hierarchy. The fair values and principal values consider the terms of the related debt and exclude the impacts of debt discounts and hedging activity.

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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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