Short-term Borrowings and Long-term Debt

12 Months Ended

Jul. 28, 2013

Short-term Borrowings and Long-term Debt

Short-term borrowings consist of the following:



	2013		2012
Commercial paper	$	1,162	$	352
Current portion of long-term debt	700		400
Variable-rate bank borrowings	44		30
Capital leases	2		—
Other ⁽¹⁾	1		4
	$	1,909	$	786

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⁽¹⁾	Other includes unamortized net premium/discount on debt issuances and amounts related to interest rate swaps designated as fair-value hedges. For additional information on fair-value interest rate swaps, see Note 14.

As of July 28, 2013, the weighted-average interest rate of commercial paper, which consisted of U.S. borrowings, was 0.19%. As of July 29, 2012, the weighted-average interest rate of commercial paper, which consisted of U.S. borrowings, was 0.23%.

At July 28, 2013, the company had $40 of standby letters of credit issued on its behalf. The company has committed revolving credit facilities totaling $2,000, comprised of a $500 facility and a $1,500 facility, both maturing in September 2016. Both facilities remained unused at July 28, 2013, except for $3 of standby letters of credit issued on behalf of the company. These revolving credit agreements support the company’s commercial paper programs and other general corporate purposes.

Long-term debt consists of the following:



Type	Fiscal Year of Maturity	Rate	2013			2012
Notes	2013	5.00%	$	—		$	400
Notes	2014	4.88%	300			300
Notes	2014	LIBOR plus 0.30%	400			—
Notes	2015	3.38%	300			300
Notes	2017	3.05%	400			400
Notes	2019	4.50%	300			300
Notes	2021	4.25%	500			500
Debentures	2021	8.88%	200			200
Notes	2023	2.50%	450			—
Notes	2043	3.80%	400			—
Capital leases			4			—
Other⁽¹⁾			(10		)	8
Total			3,244			2,408
Less current portion			700			404
Total long-term debt			$	2,544		$	2,004

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⁽¹⁾	Other includes unamortized net premium/discount on debt issuances and amounts related to interest rate swaps designated as fair-value hedges. For additional information on fair-value interest rate swaps, see Note 14.

Principal amounts of debt mature as follows: $702 in 2014; $301 in 2015; $1 in 2016; $401 in 2017; and a total of $1,851 in periods beyond 2017.

On August 6, 2012, the company completed the acquisition of Bolthouse Farms from a fund managed by Madison Dearborn Partners, LLC, a private equity firm, for $1,550 in cash, subject to customary purchase price adjustments. On August 6, 2012, the preliminary purchase price adjustments resulted in an increase in the purchase price of $20. In the third quarter, the purchase price adjustments were finalized and reduced to $11. The acquisition was funded through a combination of short- and long-term borrowings. The terms of long-term borrowings, which were issued on August 2, 2012, were as follows:


•	$400 floating rate notes that mature on August 1, 2014. Interest on the notes is based on 3-month U.S. dollar LIBOR plus 0.30%. Interest is payable quarterly and commenced on November 1, 2012;


•	$450 of 2.50% notes that mature on August 2, 2022. Interest is payable semi-annually and commenced on February 2, 2013. The company may redeem the notes in whole or in part at any time at a redemption price of 100% of the principal amount plus accrued interest or an amount designed to ensure that the note holders are not penalized by the early redemption; and


•	$400 of 3.80% notes that mature on August 2, 2042. Interest is payable semi-annually and commenced on February 2, 2013. The company may redeem the notes in whole or in part at any time at a redemption price of 100% of the principal amount plus accrued interest or an amount designed to ensure that the note holders are not penalized by the early redemption.

The remaining balance was funded through the issuance of commercial paper.

On June 13, 2013, the company completed the acquisition of Plum for $249 million, subject to customary purchase price adjustments. The acquisition was funded through the issuance of commercial paper.

On August 8, 2013, the company acquired Kelsen for approximately $325, subject to customary purchase price adjustments. The acquisition was funded through the issuance of commercial paper.

- 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.

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