XML 54 R20.htm IDEA: XBRL DOCUMENT v3.20.2
Short-term Borrowings and Long-term Debt
 12 Months Ended
Aug. 02, 2020
Debt Disclosure [Abstract]  
Short-term Borrowings and Long-term Debt Short-term Borrowings and Long-term Debt
Short-term borrowings consist of the following:
20202019
Commercial paper$280 $853 
Notes721 500 
Debentures200 — 
Finance leases3 1 
Build-to-suit lease commitment — 20 
Other(1)
(2)(3)
Total short-term borrowings$1,202 $1,371 
_______________________________________
(1)Includes unamortized net discount/premium on debt issuances and debt issuance costs.
As of August 2, 2020, the weighted-average interest rate of commercial paper, which consisted of U.S. borrowings, was 2.10%. As of July 28, 2019, the weighted-average interest rate was 2.97%.
As of August 2, 2020, we issued $34 of standby letters of credit. We have a committed revolving credit facility totaling $1,850 that matures in December 2021. This U.S. facility remained unused at August 2, 2020, except for $1 of standby letters of credit that we issued under it. The U.S. facility supports our commercial paper programs and other general corporate purposes. In March 2020, we borrowed $300 under this revolving credit facility and on May 1, 2020 we repaid the borrowings.
As of July 28, 2019, we had short-term borrowings of $232 reflected in Current liabilities of discontinued operations. The borrowings were repaid in August 2019.
Long-term debt consists of the following:
TypeFiscal Year of MaturityRate20202019
Notes2020Variable$— $500 
Notes2021Variable400 400 
Senior Term Loan2021Variable— 499 
Notes20213.30%321 650 
Notes20214.25%— 500 
Debentures20218.875%200 200 
Notes20232.50%450 450 
Notes20233.65%566 1,200 
Notes20253.95%850 850 
Notes20253.30%300 300 
Notes20284.15%1,000 1,000 
Notes20302.375%500 — 
Notes20433.80%163 400 
Notes20484.80%700 700 
Notes20503.125%500 — 
Finance leases7 3 
Other(1)
(42)(49)
Total$5,915 $7,603 
Less current portion921 500 
Total long-term debt$4,994 $7,103 
_______________________________________
(1)Includes unamortized net discount/premium on debt issuances and debt issuance costs.
On January 22, 2020, we completed the redemption of all $500 outstanding aggregate principal amount of our 4.25% Senior Notes due 2021. On January 24, 2020, we settled tender offers to purchase $1,200 in aggregate principal amount of certain senior unsecured debt, comprising $329 of 3.30% Senior Notes due 2021, $634 of 3.65% Senior Notes due 2023, and $237 of 3.80% Senior Notes due 2043. The consideration for the redemption and the tender offers was $1,765, including $65 of premium. We recognized a loss of $75 (including $65 of premium, fees and other costs paid with the tender offers and unamortized debt issuance costs), which was recorded in Interest expense in the Consolidated Statement of Earnings. In addition, we paid accrued and unpaid interest on the purchased notes through the dates of settlement.
In 2020, we also repaid our $499 Senior Term Loan due 2021.
On April 24, 2020, we issued senior notes in an aggregate principal amount of $1,000, consisting of $500 aggregate principal amount of notes bearing interest at a fixed rate of 2.375% per annum, due April 24, 2030, and $500 aggregate principal amount of notes bearing interest at a fixed rate of 3.125% per annum, due April 24, 2050. On May 1, 2020, we used $300 of the net proceeds to repay $300 of borrowings outstanding under our revolving credit facility. The 2.375% Senior Notes due 2030 and the 3.125% Senior Notes due 2050 may each be redeemed at the applicable redemption price, in whole or in part, at our option at any time and from time to time prior to January 24, 2030, and October 24, 2049, respectively. Interest on each of the notes is due semi-annually on April 24 and October 24, commencing on October 24, 2020. The notes contain customary covenants and events of default. If a change of control triggering event occurs, we will be required to offer to purchase the notes at a purchase price equal to 101% of the principal amount plus accrued and unpaid interest, if any, to the purchase date.
Principal amounts of long-term debt mature as follows: $4 in 2022; $1,019 in 2023; $0 in 2024; $1,150 in 2025; and a total of $2,863 in periods thereafter.
As of July 28, 2019, we had long-term debt of $6 reflected in Noncurrent liabilities of discontinued operations.