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 December 31, 2016 and September 24, 2016, the Company had $10.5 billion and $8.1 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 0.61% as of December 31, 2016 and 0.45% as of September 24, 2016.

The following table provides a summary of cash flows associated with the issuance and maturities of Commercial Paper for the three months ended December 31, 2016 and December 26, 2015 (in millions):



	Three Months Ended
	December 31, 2016			December 26, 2015
Maturities less than 90 days:
Proceeds from/(Repayments of) commercial paper, net	$	1,550		$	(393	)

Maturities greater than 90 days:
Proceeds from commercial paper	2,544			492
Repayments of commercial paper	(1,709		)	(1,339		)
Proceeds from/(Repayments of) commercial paper, net	835			(847		)

Total change in commercial paper, net	$	2,385		$	(1,240	)

Long-Term Debt

As of December 31, 2016, the Company had outstanding floating- and fixed-rate notes with varying maturities for an aggregate principal amount of $77.4 billion (collectively the “Notes”). The Notes are senior unsecured obligations, and interest is payable in arrears, quarterly for the U.S. dollar-denominated and Australian dollar-denominated floating-rate notes, semi-annually for the U.S. dollar-denominated, Australian dollar-denominated, British pound-denominated and Japanese yen-denominated fixed-rate notes and annually for the euro-denominated and Swiss franc-denominated fixed-rate notes. The following table provides a summary of the Company’s term debt as of December 31, 2016 and September 24, 2016:



	Maturities	December 31, 2016				September 24, 2016
	Maturities	Amount (in millions)			Effective Interest Rate	Amount (in millions)			Effective Interest Rate
2013 debt issuance of $17.0 billion:
Floating-rate notes	2018	$	2,000		1.10%	$	2,000		1.10%
Fixed-rate 1.000% - 3.850% notes	2018 - 2043	12,500			1.08% - 3.91%	12,500			1.08% - 3.91%

2014 debt issuance of $12.0 billion:
Floating-rate notes	2017 - 2019	2,000			0.95% - 1.18%	2,000			0.86% - 1.09%
Fixed-rate 1.050% - 4.450% notes	2017 - 2044	10,000			0.95% - 4.48%	10,000			0.85% - 4.48%

2015 debt issuances of $27.3 billion:
Floating-rate notes	2017 - 2020	1,753			0.95% - 1.87%	1,781			0.87% - 1.87%
Fixed-rate 0.350% - 4.375% notes	2017 - 2045	24,225			0.28% - 4.51%	25,144			0.28% - 4.51%

2016 debt issuances of $24.9 billion:
Floating-rate notes	2019 - 2021	1,350			1.02% - 2.05%	1,350			0.91% - 1.95%
Fixed-rate 1.100% - 4.650% notes	2018 - 2046	23,550			1.13% - 4.78%	23,609			1.13% - 4.58%
Total term debt		77,378				78,384

Unamortized premium/(discount) and issuance costs, net		(166		)		(174		)
Hedge accounting fair value adjustments		(156		)		717
Less: Current portion of long-term debt		(3,499		)		(3,500		)
Total long-term debt		$	73,557			$	75,427

As of December 31, 2016 and September 24, 2016, ¥90.4 billion and ¥195.5 billion, respectively, of Japanese yen-denominated notes were designated as a hedge of the foreign currency exposure of the Company's net investment in a foreign operation. The foreign currency transaction gain or loss on the Japanese yen-denominated debt designated as a hedge is recorded in OCI as a part of the cumulative translation adjustment. As of December 31, 2016 and September 24, 2016, the carrying value of the debt designated as a net investment hedge was $767 million and $1.9 billion, respectively. For further discussion regarding the Company’s use of derivative instruments see the Derivative Financial Instruments section of Note 2, “Financial Instruments.”

The effective interest rates for the Notes include the interest on the Notes, amortization of the discount and, if applicable, adjustments related to hedging. The Company recognized $509 million and $271 million of interest expense on its term debt for the three months ended December 31, 2016 and December 26, 2015, respectively.

As of December 31, 2016 and September 24, 2016, the fair value of the Company’s Notes, based on Level 2 inputs, was $77.7 billion and $81.7 billion, respectively.