Financing Arrangements

Commercial Paper

The Company maintains a commercial paper program that allows the Company to have a maximum of $3.500 billion in commercial paper outstanding, with maturities up to 364 days from the date of issuance. Commercial paper amounts outstanding as of January 29, 2016 totaled $1.293 billion. No amounts were outstanding as of April 24, 2015. During the three and nine months ended January 29, 2016, the weighted average original maturity of the commercial paper outstanding was approximately 53 days and 48 days, respectively, and the weighted average interest rate was 0.56 percent and 0.48 percent, respectively. The issuance of commercial paper proportionately reduced the amount of credit available under the Company’s existing Credit Facility, as defined below.

Line of Credit

The Company has a $3.500 billion five year credit facility (Credit Facility) which provides back up funding for the commercial paper program described above. As of January 29, 2016 and April 24, 2015, no amounts were outstanding.

Interest rates 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 remained in compliance with as of January 29, 2016.

Long-Term Debt

Long-term debt consisted of the following:



(in millions, except interest rates)	Maturity by Fiscal Year	Payable as of January 29, 2016		Payable as of April 24, 2015
Floating rate three-year 2014 senior notes	2017	$	250	$	250
0.875 percent three-year 2014 senior notes	2017	250		250
6.000 percent ten-year 2008 CIFSA senior notes	2018	1,150		1,150
1.500 percent three-year 2015 senior notes	2018	1,000		1,000
1.375 percent five-year 2013 senior notes	2018	1,000		1,000
5.600 percent ten-year 2009 senior notes	2019	400		400
4.450 percent ten-year 2010 senior notes	2020	1,250		1,250
2.500 percent five-year 2015 senior notes	2020	2,500		2,500
Floating rate five-year 2015 senior notes	2020	500		500
4.200 percent ten-year 2010 CIFSA senior notes	2021	600		600
4.125 percent ten-year 2011 senior notes	2021	500		500
3.125 percent ten-year 2012 senior notes	2022	675		675
3.150 percent seven-year 2015 senior notes	2022	2,500		2,500
3.200 percent ten-year 2012 CIFSA senior notes	2023	650		650
2.750 percent ten-year 2013 senior notes	2023	1,250		1,250
2.950 percent ten-year 2013 CIFSA senior notes	2024	750		750
3.625 percent ten-year 2014 senior notes	2024	850		850
3.500 percent ten-year 2015 senior notes	2025	4,000		4,000
4.375 percent twenty-year 2015 senior notes	2035	2,500		2,500
6.550 percent thirty-year 2008 CIFSA senior notes	2038	850		850
6.500 percent thirty-year 2009 senior notes	2039	300		300
5.550 percent thirty-year 2010 senior notes	2040	500		500
4.500 percent thirty-year 2012 senior notes	2042	400		400
4.000 percent thirty-year 2013 senior notes	2043	750		750
4.625 percent thirty-year 2014 senior notes	2044	650		650
4.625 percent thirty-year 2015 senior notes	2045	4,000		4,000
Three-year term loan	2018	3,000		3,000
Interest rate swaps (Note 8)	2017 - 2022	87		79
Deferred gains from interest rate swap terminations, net	-	—		3
Capital lease obligations	2017 - 2025	117		129
Bank borrowings	2021	31		17
Debt premium	2017 - 2045	421		499
Total Long-Term Debt		$	33,681	$	33,752

Senior Notes

The Company has outstanding unsecured senior obligations including those indicated as senior notes in the long-term debt table 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 remains in compliance with as of January 29, 2016. The Company used the net proceeds from the sale of the Senior Notes primarily for working capital and general corporate uses, which includes the repayment of other indebtedness of the Company, and to fund the acquisition of Covidien in fiscal year 2015. For additional information regarding the terms of these agreements, refer to Note 8 to the consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended April 24, 2015.

Financial Instruments Not Measured at Fair Value

As of January 29, 2016, the total estimated fair value of the Company’s long-term debt, including the short-term portion, was $31.781 billion compared to a principal value of $30.525 billion; as of April 24, 2015, the total estimated fair value was $34.637 billion compared to a principal value of $32.125 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 derivative/hedging activity.