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DEBT AND CREDIT ARRANGEMENTS | 3 Months Ended
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Mar. 29, 2024
Debt Disclosure [Abstract] |
DEBT AND CREDIT ARRANGEMENTS | NOTE G: DEBT AND CREDIT ARRANGEMENTS Long-Term Debt Long-term debt, net is summarized below:
(In millions) | March 29, 2024 |  | December 29, 2023
Variable-rate debt: |  |  |
Term loan, due November 21, 2025 (“Term Loan 2025”) | $ | — |  |  | $ | 2,250 |
Fixed-rate debt: |  |  |
3.95% notes, due May 28, 2024 | 350 |  |  | 350 |
3.832% notes, due April 27, 2025 | 600 |  |  | 600 |
7.00% debentures, due January 15, 2026 | 100 |  |  | 100 |
3.85% notes, due December 15, 2026 | 550 |  |  | 550 |
5.40% notes, due January 15, 2027 (“5.4% 2027 Notes”) | 1,250 |  |  | 1,250 |
6.35% debentures, due February 1, 2028 | 26 |  |  | 26 |
4.40% notes, due June 15, 2028 | 1,850 |  |  | 1,850 |
5.05% notes, due June 1, 2029 (“5.05% 2029 Notes”) | 750 |  |  | — |
2.90% notes, due December 15, 2029 | 400 |  |  | 400 |
1.80% notes, due January 15, 2031 | 650 |  |  | 650 |
5.25% notes, due June 1, 2031 (“5.25% 2031 Notes”) | 750 |  |  | — |
5.40% notes, due July 31, 2033 (“5.4% 2033 Notes”) | 1,500 |  |  | 1,500 |
5.350% notes, due June 1, 2034 (“5.35% 2034 Notes”) | 750 |  |  | — |
4.854% notes, due April 27, 2035 | 400 |  |  | 400 |
6.15% notes, due December 15, 2040 | 300 |  |  | 300 |
5.054% notes, due April 27, 2045 | 500 |  |  | 500 |
5.60% notes, due July 31, 2053 (“5.6% 2053 Notes”) | 500 |  |  | 500 |
Total variable and fixed-rate debt | 11,226 |  |  | 11,226 |
Financing lease obligations and other debt | 306 |  |  | 300 |
Long-term debt, including the current portion of long-term debt | 11,532 |  |  | 11,526 |
Plus: unamortized bond premium | 47 |  |  | 51 |
Less: unamortized discounts and issuance costs | (74) |  |  | (54) |
Long-term debt, including the current portion of long-term debt, net | 11,505 |  |  | 11,523 |
Less: current portion of long-term debt, net | (365) |  |  | (363) |
Total long-term debt, net | $ | 11,140 |  |  | $ | 11,160 |
Long Term Debt Issued Fixed Rate Debt. On March 13, 2024, we closed the issuance and sale of $2.25 billion aggregate principal amount of new long-term fixed-rate debt consisting of the 5.05% 2029 Notes, the 5.25% 2031 Notes, and the 5.35% 2034 Notes (collectively, the “2024 Notes”). The 2024 Notes were used to repay Term Loan 2025, including related fees and expenses, which had an outstanding balance of $2.25 billion at December 29, 2023. Interest on the 2024 Notes is payable semi-annually in arrears on June 1 and December 1 of each year, commencing on December 1, 2024. We may redeem the 5.05% 2029 Notes, 5.25% 2031 Notes and 5.35% 2034 Notes prior to May 1, 2029, April 1, 2031 and March 1, 2034, respectively, in whole or in part, at our option, at a redemption price equal to the greater of: (i) the sum of the present values of the remaining scheduled payments of the principal and interest thereon discounted to the redemption date on a semi-annual basis at the “Treasury Rate,” as defined in the 2024 Notes, plus 15 basis points for the 5.05% 2029 Notes and 20 basis points for the 5.25% 2031 Notes and 5.35% 2034 Notes, less interest accrued to the date of redemption; (ii) or 100% of the principal amount of the respective notes plus, in either case, accrued interest and unpaid interest thereon to the redemption date. After May 1, 2029, April 1, 2031 and March 1, 2034, we may redeem the 5.05% 2029 Notes, 5.25% 2031 Notes, and 5.35% 2034 Notes respectively, at a redemption price equal to 100% of the principal amount being redeemed plus accrued and unpaid interest thereon to the redemption date. We incurred a combined total of $20 million of debt issuance costs for the 2024 Notes, which are being amortized over the life of each respective note. Such amortization is included as a component of the “Interest expense, net” line item in our Condensed Consolidated Statement of Operations. Long-Term Debt Repayments On March 14, 2024, we repaid the entire outstanding $2.25 billion drawn on Term Loan 2025, which at time of repayment had a variable interest rate of 6.7%, through the issuance of the 2024 Notes, which bear fixed interest rates between 5.05% and 5.35%. 2024 Credit Agreement On January 26, 2024, we established a new $1.5 billion, 364-day senior unsecured revolving credit facility (“2024 Credit Facility”) by entering into a 364-day credit agreement maturing no later than January 24, 2025 (“2024 Credit Agreement”) with a syndicate of lenders. The 2024 Credit Agreement replaces the prior $2.4 billion 364-Day Credit Agreement (“2023 Credit Agreement”). At our election, borrowings under the 2024 Credit Agreement, which are designated in U.S. Dollars, bear interest at the sum of the term secured overnight financing rate or the Base Rate (as defined in the 2024 Credit Agreement), plus an applicable margin that varies based on the ratings of our senior unsecured long-term debt securities (“Senior Debt Ratings.”) In addition to interest payable on the principal amount of indebtedness outstanding we are required to pay a quarterly unused commitment fee that varies based on our Senior Debt Ratings. The 2024 Credit Agreement also contains representations, warranties, covenants and events of default that are substantially similar to the existing Revolving Credit Agreement, dated as of July 29, 2022 (“2022 Credit Agreement”). The 2024 Credit Agreement matures in January 2025, provided that we may extend the maturity of any loans outstanding under the 2024 Credit Agreement by one year, subject to the satisfaction of certain conditions. At March 29, 2024, we had no outstanding borrowings and were in compliance with all covenants under the 2024 Credit Agreement. 2022 Credit Agreement On July 29, 2022, we established a $2.0 billion, five-year senior unsecured revolving credit facility (“2022 Credit Facility”) under a Revolving Credit Agreement (the “2022 Credit Agreement”), with a syndicate of lenders. At March 29, 2024, we had no outstanding borrowings and were in compliance with all covenants under the 2022 Credit Agreement. For a description of the 2022 Credit Agreement and related covenants, see Note 8: Debt and Credit Arrangements in our Fiscal 2023 Form 10-K. Commercial Paper Program On January 26, 2024, we lowered the maximum amount available under our commercial paper program (“CP Program”) to $3.0 billion from $3.9 billion in accordance with the terms of the CP Program. The CP Program is supported by amounts available under the 2022 Credit Agreement and the 2024 Credit Agreement. The commercial paper notes are sold at par less a discount representing an interest factor or, if interest bearing, at par, and the maturities vary but may not exceed 397 days from the date of issue. The commercial paper notes will rank at least pari passu with all other unsecured and unsubordinated indebtedness. At March 29, 2024 and December 29, 2023, we had $2.2 billion and $1.6 billion in outstanding notes under our CP Program, respectively, which is included as a component of the “Short-term debt” line item in our Condensed Consolidated Balance Sheet. The outstanding notes under our CP Program had a weighted-average interest rate of 5.83% and 5.95% at March 29, 2024 and December 29, 2023, respectively.

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