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Short-term Borrowings and Long-term Debt | 12 Months Ended
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Dec. 28, 2013
Debt Disclosure [Abstract] |
Short-term Borrowings and Long-term Debt | Short-term Borrowings and Long-term Debt
|  | 2013 |  | 2012
Short-term Borrowings |  |  |  |
Current maturities of long-term debt |  | $ | 71 |  |  | $ | 10 |
Long-term Debt |  |  |  |
Senior Unsecured Notes |  | $ | 2,803 |  |  | $ | 2,750 |
Capital lease obligations (See Note 11) |  | 172 |  |  | 170 |
|  | 2,975 |  |  | 2,920 |
Less current maturities of long-term debt |  | (71 | ) |  | (10 | )
Long-term debt excluding long-term portion of hedge accounting adjustment |  | 2,904 |  |  | 2,910 |
Long-term portion of fair value hedge accounting adjustment (See Note 12) |  | 14 |  |  | 22 |
Long-term debt including hedge accounting adjustment |  | $ | 2,918 |  |  | $ | 2,932 |
Our primary bank credit agreement comprises a $1.3 billion syndicated senior unsecured revolving credit facility (the "Credit Facility") which matures in March 2017. The Credit Facility includes 24 participating banks with commitments ranging from $23 million to $115 million. Under the terms of the Credit Facility, we may borrow up to the maximum borrowing limit, less outstanding letters of credit or banker’s acceptances, where applicable. At December 28, 2013, our unused Credit Facility totaled $1.2 billion net of outstanding letters of credit of $65 million. There were no borrowings outstanding under the Credit Facility at December 28, 2013. The interest rate for most borrowings under the Credit Facility ranges from 1.00% to 1.75% over the London Interbank Offered Rate (“LIBOR”). The exact spread over LIBOR under the Credit Facility depends upon our performance against specified financial criteria. Interest on any outstanding borrowings under the Credit Facility is payable at least quarterly. The Credit Facility is unconditionally guaranteed by our principal domestic subsidiaries. This agreement contains financial covenants relating to maintenance of leverage and fixed charge coverage ratios and also contains affirmative and negative covenants including, among other things, limitations on certain additional indebtedness and liens, and certain other transactions specified in the agreement. Given the Company’s strong balance sheet and cash flows, we were able to comply with all debt covenant requirements at December 28, 2013 with a considerable amount of cushion. Additionally, the Credit Facility contains cross-default provisions whereby our failure to make any payment on our indebtedness in a principal amount in excess of $125 million, or the acceleration of the maturity of any such indebtedness, will constitute a default under such agreement. The majority of our remaining long-term debt primarily comprises Senior Unsecured Notes with varying maturity dates from 2014 through 2043 and stated interest rates ranging from 2.38% to 6.88%. The Senior Unsecured Notes represent senior, unsecured obligations and rank equally in right of payment with all of our existing and future unsecured unsubordinated indebtedness. Our Senior Unsecured Notes provide that the acceleration of the maturity of any of our indebtedness in a principal amount in excess of $50 million will constitute a default under the Senior Unsecured Notes if such acceleration is not annulled, or such indebtedness is not discharged, within 30 days after notice. During the fourth quarter of 2013, we issued $325 million aggregate principal amount of 3.88% 10 year Senior Unsecured Notes and $275 million aggregate principal amount of 5.35% 30 year Senior Unsecured Notes. We used the proceeds from our issuances of these Senior Unsecured Notes in part to repurchase $550 million of our Senior Unsecured Notes due either March 2018 or November 2037 with aggregate principal amounts of $275 million each. See Losses Related to the Extinguishment of Debt section of Note 4 for further detail. The following table summarizes all Senior Unsecured Notes issued that remain outstanding at December 28, 2013:
|  |  |  |  |  | Interest Rate
Issuance Date(a) |  | Maturity Date |  | Principal Amount (in millions) |  | Stated |  | Effective(b)
April 2006 |  | April 2016 |  | $ | 300 |  |  | 6.25% |  | 6.03%
October 2007 |  | March 2018 |  | $ | 325 |  |  | 6.25% |  | 6.36%
October 2007 |  | November 2037 |  | $ | 325 |  |  | 6.88% |  | 7.45%
August 2009 |  | September 2015 |  | $ | 250 |  |  | 4.25% |  | 4.44%
August 2009 |  | September 2019 |  | $ | 250 |  |  | 5.30% |  | 5.59%
August 2010 |  | November 2020 |  | $ | 350 |  |  | 3.88% |  | 4.01%
August 2011 |  | November 2021 |  | $ | 350 |  |  | 3.75% |  | 3.88%
September 2011 |  | September 2014 |  | $ | 58 |  |  | 2.38% |  | 2.89%
October 2013 |  | November 2023 |  | $ | 325 |  |  | 3.88% |  | 4.01%
October 2013 |  | November 2043 |  | $ | 275 |  |  | 5.35% |  | 5.42%
(a) | Interest payments commenced approximately six months after issuance date and are payable semi-annually thereafter.
(b) | Includes the effects of the amortization of any (1) premium or discount; (2) debt issuance costs; and (3) gain or loss upon settlement of related treasury locks and forward-starting interest rate swaps utilized to hedge the interest rate risk prior to the debt issuance. Excludes the effect of any swaps that remain outstanding as described in Note 12.
The annual maturities of short-term borrowings and long-term debt as of December 28, 2013, excluding capital lease obligations of $172 million and fair value hedge accounting adjustments of $14 million, are as follows:
Year ended: |
2014 | $ | 58 |
2015 | 250 |
2016 | 300 |
2017 | — |
2018 | 325 |
Thereafter | 1,875 |
Total | $ | 2,808 |
Interest expense on short-term borrowings and long-term debt was $270 million, $169 million and $184 million in 2013, 2012 and 2011, respectively. 2013 included $118 million in losses recorded in Interest expense, net as a result of premiums paid and other costs related to the extinguishment of debt. See Losses Related to the Extinguishment of Debt section of Note 4 for further discussion.

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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 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: 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 3: 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 + Details
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