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Debt
 12 Months Ended
Sep. 28, 2019
Debt Disclosure [Abstract]  
Debt Debt
Commercial Paper
The Company issues unsecured short-term promissory notes (“Commercial Paper”) pursuant to a commercial paper program. The Company uses net proceeds from the commercial paper program for general corporate purposes, including dividends and share repurchases. As of September 28, 2019 and September 29, 2018, the Company had $6.0 billion and $12.0 billion of Commercial Paper outstanding, respectively, with maturities generally less than nine months. The weighted-average interest rate of the Company’s Commercial Paper was 2.24% and 2.18% as of September 28, 2019 and September 29, 2018, respectively. The following table provides a summary of cash flows associated with the issuance and maturities of Commercial Paper for 2019, 2018 and 2017 (in millions):
 
2019
 
2018
 
2017
Maturities 90 days or less:
 
 
 
 
 
Proceeds from/(Repayments of) commercial paper, net
$
(3,248
)
 
$
1,044

 
$
(1,782
)
 
 
 
 
 
 
Maturities greater than 90 days:
 
 
 
 
 
Proceeds from commercial paper
13,874

 
14,555

 
17,932

Repayments of commercial paper
(16,603
)
 
(15,636
)
 
(12,298
)
Proceeds from/(Repayments of) commercial paper, net
(2,729
)

(1,081
)
 
5,634

 
 
 
 
 
 
Total proceeds from/(repayments of) commercial paper, net
$
(5,977
)

$
(37
)
 
$
3,852


Term Debt
As of September 28, 2019, the Company had outstanding floating- and fixed-rate notes with varying maturities for an aggregate principal amount of $101.7 billion (collectively the “Notes”). The Notes are senior unsecured obligations and interest is payable in arrears. The following table provides a summary of the Company’s term debt as of September 28, 2019 and September 29, 2018:
 
Maturities
(calendar year)
 
2019
 
2018
 
Amount
(in millions)
 
Effective
Interest Rate
 
Amount
(in millions)
 
Effective
Interest Rate
2013–2018 debt issuances:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Floating-rate notes
2020
–
2022
 
$
4,250

 
 
2.25%
–
3.28
%
 
$
7,107

 
 
1.87%
–
3.44
%
Fixed-rate 0.350% – 4.650% notes
2019
–
2047
 
90,429

 
 
0.28%
–
4.78
%
 
97,086

 
 
0.28%
–
4.78
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2019 debt issuance:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed-rate 1.700% – 2.950% notes
2022
–
2049
 
7,000

 
 
1.71%
–
2.99
%
 
—

 
 
 
 
—
%
Total term debt
 
 
 
 
101,679

 
 
 
 
 
 
104,193

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unamortized premium/(discount) and issuance costs, net
 
 
 
 
(224
)
 
 
 
 
 
 
(218
)
 
 
 
 
 
Hedge accounting fair value adjustments
 
 
 
 
612

 
 
 
 
 
 
(1,456
)
 
 
 
 
 
Less: Current portion of term debt
 
 
 
 
(10,260
)
 
 
 
 
 
 
(8,784
)
 
 
 
 
 
Total non-current portion of term debt
 
 
 
 
$
91,807

 
 
 
 
 
 
$
93,735

 
 
 
 
 

To manage interest rate risk on certain of its U.S. dollar–denominated fixed- or floating-rate notes, the Company has entered into interest rate swaps to effectively convert the fixed interest rates to floating interest rates or the floating interest rates to fixed interest rates on a portion of these notes. Additionally, to manage foreign currency risk on certain of its foreign currency–denominated notes, the Company has entered into foreign currency swaps to effectively convert these notes to U.S. dollar–denominated notes.
A portion of the Company’s Japanese yen–denominated notes is designated as a hedge of the foreign currency exposure of the Company’s net investment in a foreign operation. As of September 28, 2019 and September 29, 2018, the carrying value of the debt designated as a net investment hedge was $1.0 billion and $811 million, respectively. For further discussion regarding the Company’s use of derivative instruments, refer to the Derivative Financial Instruments section of Note 3, “Financial Instruments.”
The effective interest rates for the Notes include the interest on the Notes, amortization of the discount or premium and, if applicable, adjustments related to hedging. The Company recognized $3.2 billion, $3.0 billion and $2.2 billion of interest cost on its term debt for 2019, 2018 and 2017, respectively.
The future principal payments for the Company’s Notes as of September 28, 2019 are as follows (in millions):
2020
$
10,270

2021
8,750

2022
9,528

2023
9,290

2024
10,039

Thereafter
53,802

Total term debt
$
101,679


As of September 28, 2019 and September 29, 2018, the fair value of the Company’s Notes, based on Level 2 inputs, was $107.5 billion and $103.2 billion, respectively.