XML 29 R15.htm IDEA: XBRL DOCUMENT v3.22.2.2
Debt
 12 Months Ended
Sep. 24, 2022
Debt Disclosure [Abstract]  
Debt Debt
Commercial Paper and Repurchase Agreements
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 24, 2022 and September 25, 2021, the Company had $10.0 billion and $6.0 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 2.31% and 0.06% as of September 24, 2022 and September 25, 2021, respectively. The following table provides a summary of cash flows associated with the issuance and maturities of Commercial Paper for 2022, 2021 and 2020 (in millions):
202220212020
Maturities 90 days or less:
Proceeds from/(Repayments of) commercial paper, net$5,264 $(357)$100 
Maturities greater than 90 days:
Proceeds from commercial paper
5,948 7,946 6,185 
Repayments of commercial paper
(7,257)(6,567)(7,248)
Proceeds from/(Repayments of) commercial paper, net(1,309)1,379 (1,063)
Total proceeds from/(repayments of) commercial paper, net$3,955 $1,022 $(963)
In 2020, the Company entered into agreements to sell certain of its marketable securities with a promise to repurchase the securities at a specified time and amount (“Repos”). Due to the Company’s continuing involvement with the marketable securities, the Company accounted for its Repos as collateralized borrowings. The Company entered into $5.2 billion of Repos during 2020, all of which had been settled as of September 26, 2020.
Term Debt
The Company has outstanding fixed-rate notes with varying maturities (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 24, 2022 and September 25, 2021:
Maturities
(calendar year)
20222021
Amount
(in millions)
Effective
Interest Rate
Amount
(in millions)
Effective
Interest Rate
2013 – 2021 debt issuances:
Floating-rate notes $— $1,750 
0.48% – 0.63%
Fixed-rate 0.000% – 4.650% notes
2022 – 2061
106,324 
0.03% – 4.78%
116,313 
0.03% – 4.78%
Fourth quarter 2022 debt issuance:
Fixed-rate 3.250% – 4.100% notes
2029 – 2062
5,500 
3.27% – 4.12%
— 
Total term debt111,824 118,063 
Unamortized premium/(discount) and issuance costs, net
(374)(380)
Hedge accounting fair value adjustments(1,363)1,036 
Less: Current portion of term debt(11,128)(9,613)
Total non-current portion of term debt$98,959 $109,106 
To manage interest rate risk on certain of its U.S. dollar–denominated fixed-rate notes, the Company has entered into interest rate swaps to effectively convert the fixed interest rates to floating 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.
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 $2.8 billion, $2.6 billion and $2.8 billion of interest expense on its term debt for 2022, 2021 and 2020, respectively.
The future principal payments for the Company’s Notes as of September 24, 2022, are as follows (in millions):
2023$11,139 
20249,910 
202510,645 
202611,209 
20279,631 
Thereafter59,290 
Total term debt$111,824 
As of September 24, 2022 and September 25, 2021, the fair value of the Company’s Notes, based on Level 2 inputs, was $98.8 billion and $125.3 billion, respectively.