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Financing Arrangements
 12 Months Ended
Apr. 26, 2024
Debt Disclosure [Abstract]  
Financing Arrangements Financing Arrangements
Current debt obligations consisted of the following:
(in millions)April 26, 2024April 28, 2023
Bank borrowings$13 $13 
Finance lease obligations6 7 
Commercial Paper1,073 — 
Current debt obligations$1,092 $20 
Commercial Paper On January 26, 2015, Medtronic Global Holdings S.C.A. (Medtronic Luxco), an entity organized under the laws of Luxembourg, entered into various agreements pursuant to which Medtronic Luxco may issue United States Dollar-denominated unsecured commercial paper notes (the 2015 CP Program) on a private placement basis, and on January 31, 2020 Medtronic Luxco entered into various agreements pursuant to which Medtronic Luxco may issue Euro-denominated unsecured commercial paper notes (the 2020 CP Program) on a private placement basis. The maximum aggregate amount outstanding at any time under the 2015 CP Program and the 2020 CP Program together may not exceed the equivalent of $3.5 billion. The Company and Medtronic, Inc. have guaranteed the obligations of Medtronic Luxco under the 2015 CP Program and the 2020 CP Program.
There was $1.1 billion commercial paper outstanding at April 26, 2024. During fiscal year 2024, the weighted average original maturity of the commercial paper outstanding was approximately 20 days and the weighted average interest rate was 5.45 percent. There was no commercial paper outstanding at April 28, 2023. During fiscal year 2023, the weighted average original maturity of the commercial paper outstanding was approximately 22 days and the weighted average interest rate was 4.34 percent. The issuance of commercial paper reduces the amount of credit available under the Company's existing credit facility, defined below.
Line of Credit On December 12, 2023, Medtronic Luxco, as borrower, entered into an amendment to its amended and restated credit agreement (Credit Facility), by and among Medtronic, Medtronic, Inc., Medtronic Luxco, the lenders from time to time party thereto, and Bank of America, N.A., as administrative agent and issuing bank, extending the maturity date of the Credit Facility to December 2028.
The Credit Facility provides for a $3.5 billion five-year unsecured revolving credit facility (Credit Facility). At each anniversary date of the Credit Facility, we can request a one-year extension of the maturity date. The Credit Facility provides the Company with the ability to increase its borrowing capacity by an additional $1.0 billion at any time during the term of the agreement. The Company and Medtronic, Inc. have guaranteed the obligations of the borrowers under the Credit Facility, and Medtronic Luxco will also guarantee the obligations of any designated borrower. The Credit Facility includes a multi-currency borrowing feature for certain specified foreign currencies. At April 26, 2024 and April 28, 2023, 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 Company is in compliance with all covenants related to the Credit Facility.
The Company's long-term debt obligations consisted of the following:
  April 26, 2024April 28, 2023
(in millions, except interest rates)Maturity by Fiscal YearAmountEffective Interest RateAmountEffective Interest Rate
0.250 percent six-year 2019 senior notes
20261,070 0.44 1,097 0.44 
2.625 percent three-year 2022 senior notes
2026535 2.86 549 2.86 
0.000 percent five-year 2020 senior notes
20261,070 0.23 1,097 0.23 
1.125 percent eight-year 2019 senior notes
20271,606 1.25 1,646 1.25 
4.250 percent five-year 2023 senior notes
20281,000 4.42 1,000 4.42 
3.000 percent six-year 2022 senior notes
20291,070 3.10 1,097 3.09 
0.375 percent eight-year 2020 senior notes
20291,070 0.51 1,097 0.51 
1.625 percent twelve-year 2019 senior notes
20311,070 1.75 1,097 1.75 
1.000 percent twelve-year 2019 senior notes
20321,070 1.06 1,097 1.06 
3.125 percent nine-year 2022 senior notes
20321,070 3.25 1,097 3.25 
0.750 percent twelve-year 2020 senior notes
20331,070 0.81 1,097 0.81 
4.500 percent ten-year 2023 senior notes
20331,000 4.62 1,000 4.62 
3.375 percent twelve-year 2022 senior notes
20351,070 3.44 1,097 3.44 
4.375 percent twenty-year 2015 senior notes
20351,932 4.47 1,932 4.47 
6.550 percent thirty-year 2007 CIFSA senior notes
2038253 4.67 253 4.67 
2.250 percent twenty-year 2019 senior notes
20391,070 2.34 1,097 2.34 
6.500 percent thirty-year 2009 senior notes
2039158 6.56 158 6.56 
1.500 percent twenty-year 2019 senior notes
20401,070 1.58 1,097 1.58 
5.550 percent thirty-year 2010 senior notes
2040224 5.58 224 5.58 
1.375 percent twenty-year 2020 senior notes
20411,070 1.46 1,097 1.46 
4.500 percent thirty-year 2012 senior notes
2042105 4.54 105 4.54 
4.000 percent thirty-year 2013 senior notes
2043305 4.09 305 4.09 
4.625 percent thirty-year 2014 senior notes
2044127 4.67 127 4.67 
4.625 percent thirty-year 2015 senior notes
20451,813 4.69 1,813 4.69 
1.750 percent thirty-year 2019 senior notes
20501,070 1.87 1,097 1.87 
1.625 percent thirty-year 2020 senior notes
20511,070 1.75 1,097 1.75 
Finance lease obligations2026-203655 10.17 57 9.91 
Debt discount, net2026-2051(55)— (64)— 
Deferred financing costs2026-2051(110)— (124)— 
Long-term debt $23,932 $24,344 
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 Company is in compliance with all covenants related to the Senior Notes.
In September 2022, Medtronic Luxco issued four tranches of Euro-denominated Senior Notes with an aggregate principal of €3.5 billion, with maturities ranging from fiscal year 2026 to 2035, resulting in cash proceeds of approximately $3.4 billion, net of discounts and issuance costs. The Company used the net proceeds to repay at maturity €750 million of Medtronic Luxco Senior Notes for $772 million of total consideration in December 2022 and €2.8 billion of Medtronic Luxco Senior Notes for $2.9 billion of total consideration in March 2023.
In March 2023, Medtronic Luxco issued two tranches of USD-denominated Senior Notes with an aggregate principal of $2.0 billion, with maturities ranging from fiscal year 2028 to 2033, resulting in cash proceeds of approximately $2.0 billion, net of discounts and issuance costs. The Company used the net proceeds supplemented by additional cash to repay the ¥297 billion Fiscal 2023 Loan Agreement discussed below for $2.3 billion of total consideration.
Subsequent to year-end, on June 3, 2024, Medtronic Inc. issued four tranches of EUR-denominated Senior Notes with an aggregate principal of €3.0 billion, with maturities ranging from fiscal year 2030 to 2054, resulting in cash proceeds of approximately $3.2 billion, net of discounts and issuance costs. In anticipation of the Euro-denominated debt issuance, the Company entered into forward currency exchange rate contracts to manage the exposure to exchange rate movements. These contracts were settled in conjunction with the issuance of the June 2024 Notes.
The Euro-denominated debt issued in September 2022 is designated as a net investment hedge of certain of the Company's European operations. Refer to Note 7 for additional information regarding the net investment hedge.
Term Loan Agreements In May 2022, Medtronic Luxco entered into a term loan agreement (Fiscal 2023 Loan Agreement) by and among Medtronic Luxco, Medtronic plc, Medtronic, Inc., and Mizuho Bank, Ltd. as administrative agent and as lender. The Fiscal 2023 Loan Agreement provides an unsecured term loan in an aggregate principal amount of up to ¥300 billion with a term of 364 days. Borrowings under the Fiscal 2023 Loan Agreement bear interest at the TIBOR Rate (as defined in the Fiscal 2023 Loan Agreement) plus a margin of 0.40% per annum. Medtronic plc and Medtronic, Inc. guaranteed the obligations of Medtronic Luxco under the Fiscal 2023 Loan Agreement. In May and June 2022, Medtronic Luxco borrowed an aggregate of ¥297 billion, or approximately $2.3 billion, of the term loan, under the Fiscal 2023 Loan Agreement. The Company used the net proceeds of the borrowings to fund the early redemption of $1.9 billion of Medtronic Inc.'s 3.500% Senior Notes due 2025 for $1.9 billion of total consideration, and $368 million of Medtronic Luxco's 3.350% Senior Notes due 2027 for $376 million of total consideration. The Company recognized a total loss on debt extinguishment of $53 million within interest expense, net in the consolidated statements of income during fiscal year 2023, which primarily includes cash premiums and accelerated amortization of deferred financing costs and debt discounts and premiums. During the fourth quarter of fiscal year 2023, the Company repaid the term loan in full, including interest.
Contractual maturities of debt for the next five fiscal years and thereafter, excluding deferred financing costs and debt discount, net, are as follows:
(in millions)
2025$1,092 
20262,684 
20271,612 
20281,006 
20292,146 
Thereafter16,649 
Total $25,189 
For fiscal years 2024, 2023, and 2022, there was $916 million, $743 million, and $553 million of interest expense on outstanding borrowings, including amortization of debt issuance costs and debt discounts and premiums, and charges recognized in connection with the early redemption of senior notes, recognized in interest expense, net in the consolidated statements of income.
Financial Instruments Not Measured at Fair Value
At April 26, 2024, the estimated fair value of the Company’s Senior Notes was $21.2 billion compared to a principal value of $24.0 billion. At April 28, 2023, the estimated fair value was $21.7 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.