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Debt | 9 Months Ended
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Jul. 01, 2017
Debt Instruments [Abstract] |
Debt | DEBT The major components of debt are as follows (in millions):
| July 1, 2017 |  | October 1, 2016
Revolving credit facility | $ | — |  |  | $ | 300 |
Commercial paper | 690 |  |  | — |
Senior notes: |  |  |
7.00% Notes due May 2018 | 120 |  |  | 120 |
Notes due May 2019 (2019 Floating-Rate Notes) (1.66% at 07/01/17) | 300 |  |  | — |
2.65% Notes due August 2019 | 1,000 |  |  | 1,000 |
Notes due June 2020 (2020 Floating-Rate Notes) (1.76% at 07/01/17) | 350 |  |  | — |
4.10% Notes due September 2020 | 283 |  |  | 284 |
4.50% Senior notes due June 2022 | 1,000 |  |  | 1,000 |
3.95% Notes due August 2024 | 1,250 |  |  | 1,250 |
3.55% Notes due June 2027 (2027 Notes) | 1,350 |  |  | — |
7.00% Notes due January 2028 | 18 |  |  | 18 |
6.13% Notes due November 2032 | 162 |  |  | 163 |
4.88% Notes due August 2034 | 500 |  |  | 500 |
5.15% Notes due August 2044 | 500 |  |  | 500 |
4.55% Notes due June 2047 (2047 Notes) | 750 |  |  | — |
Discount on senior notes | (14 | ) |  | (8 | )
Term loans: |  |  |
Tranche B due April 2019 (2.19% at 07/01/17) | 500 |  |  | 500 |
Tranche B due August 2019 (2.56% at 07/01/17) | 552 |  |  | 552 |
Tranche due June 2020 (2.38% at 07/01/17) | 1,455 |  |  | — |
Amortizing notes - tangible equity units (see Note 7: Equity) | 18 |  |  | 71 |
Other | 91 |  |  | 58 |
Unamortized debt issuance costs | (51 | ) |  | (29 | )
Total debt | 10,824 |  |  | 6,279 |
Less current debt | 1,017 |  |  | 79 |
Total long-term debt | $ | 9,807 |  |  | $ | 6,200 |
Revolving Credit Facility In May 2017, we amended our existing credit facility which, among other things, increased our line of credit from $1.25 billion to $1.50 billion. The facility supports short-term funding needs and letters of credit and will mature and the commitments thereunder will terminate in May 2022. Amounts available for borrowing under this facility totaled $1,492 million at July 1, 2017, net of outstanding letters of credit. At July 1, 2017, we had outstanding letters of credit issued under this facility totaling $8 million, none of which were drawn upon. We had an additional $113 million of bilateral letters of credit issued separately from the revolving credit facility, none of which were drawn upon. Our letters of credit are issued primarily in support of leasing obligations and workers’ compensation insurance programs. If in the future any of our subsidiaries shall guarantee any of our material indebtedness, such subsidiary shall be required to guarantee the indebtedness, obligations and liabilities under this facility. 2019 Floating-Rate / 2020 Floating-Rate / 2027 / 2047 Notes In June 2017, as part of the financing for the AdvancePierre acquisition, we issued senior unsecured notes with an aggregate principal amount of $2,750 million, consisting of $300 million due May 2019, $350 million due June 2020, $1,350 million due June 2027, and $750 million due June 2047. The 2019 Floating-Rate Notes, 2020 Floating-Rate Notes, 2027 Notes and 2047 Notes carry interest rates of 3-month LIBOR plus 0.45%, 3-month LIBOR plus 0.55%, 3.55% and 4.55%, respectively. Interest payments on the 2019 Floating-Rate Notes are due quarterly February 28, May 30, August 30, and November 30. Interest payments on the 2020 Floating-Rate Notes are due quarterly March 2, June 2, September 2, and December 2. Interest payments on the 2027 Notes and 2047 Notes are due semi-annually on June 2 and December 2. After the original issue discounts of $7 million, we received net proceeds of $2,743 million. In addition, we incurred debt issuance costs of $22 million related to this issuance. Term Loan Tranche due June 2020 In June 2017, as part of the financing for the AdvancePierre acquisition, we borrowed $1,800 million under an unsecured term loan facility, which is due June 2020. The facility will amortize at 2.5% per quarter and interest will reset based on the selected LIBOR interest period plus 1.25%. In addition, we incurred debt issuance costs of $5 million related to this borrowing. In June 2017, we also paid down the term loan by $345 million. AdvancePierre's debt extinguishment In June 2017, in connection with our AdvancePierre acquisition, we assumed $1,119 million of AdvancePierre's gross debt, which had an estimated fair value of approximately $1,181 million as of the acquisition date. We recorded the assumed debt at fair value and used the funds borrowed under our new senior notes and term loan to extinguish $1,146 million of the total outstanding balance. Additionally, we assumed a $223 million TRA liability due to AdvancePierre's former shareholders. The assumed debt and TRA liability were non cash investing activities. Commercial Paper Program In April 2017, our Board of Directors increased our commercial paper program capacity from $500 million to $1 billion. The maximum borrowing capacity under the commercial paper program is $800 million. We intend to use the net proceeds from the commercial paper program for general corporate purposes and as part of the financing for the AdvancePierre acquisition. As of July 1, 2017, we had $690 million of commercial paper outstanding at a weighted average interest rate of 1.45% with maturities of less than 45 days. Debt Covenants Our revolving credit and term loan facilities contain affirmative and negative covenants that, among other things, may limit or restrict our ability to: create liens and encumbrances; incur debt; merge, dissolve, liquidate or consolidate; make acquisitions and investments; dispose of or transfer assets; change the nature of our business; engage in certain transactions with affiliates; and enter into hedging transactions, in each case, subject to certain qualifications and exceptions. In addition, we are required to maintain minimum interest expense coverage and maximum debt-to-capitalization ratios. Our senior notes also contain affirmative and negative covenants that, among other things, may limit or restrict our ability to: create liens; engage in certain sale/leaseback transactions; and engage in certain consolidations, mergers and sales of assets. We were in compliance with all debt covenants at July 1, 2017.

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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 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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