DEBT

12 Months Ended

May 29, 2016

NOTE 8. DEBT

Notes Payable

The components of notes payable and their respective weighted-average interest rates at the end of the periods were as follows:

		May 29, 2016				May 31, 2015
In Millions		NotesPayable	Weighted-AverageInterest Rate			NotesPayable	Weighted-AverageInterest Rate
U.S. commercial paper	$	-	-	%	$	432.0	0.3	%
Financial institutions		269.8	8.6			183.8	9.5
Total	$	269.8	8.6	%	$	615.8	3.0	%

To ensure availability of funds, we maintain bank credit lines sufficient to cover our outstanding notes payable. Commercial paper is a continuing source of short-term financing. We have commercial paper programs available to us in the United States and Europe. We also have uncommitted and asset-backed credit lines that support our foreign operations.

The following table details the fee-paid committed and uncommitted credit lines we had available as of May 29, 2016:

In Billions		Facility Amount		Borrowed Amount
Credit facility expiring:
May 2021	$	2.7	$	-
June 2019		0.2		0.1
Total committed credit facilities		2.9		0.1
Uncommitted credit facilities		0.4		0.1
Total committed and uncommitted credit facilities	$	3.3	$	0.2

In fiscal 2016, we entered into a $2.7 billion fee-paid committed credit facility that is scheduled to expire in May 2021. Concurrent with the execution of this credit facility, we terminated our $1.7 billion and $1.0 billion credit facilities.

In fiscal 2015, our subsidiary, Yoplait S.A.S., entered into a €200.0 million fee-paid committed credit facility that is scheduled to expire in June 2019.

The credit facilities contain covenants, including a requirement to maintain a fixed charge coverage ratio of at least 2.5 times. We were in compliance with all credit facility covenants as of May 29, 2016.

Long-Term Debt

In January 2016, we issued €500.0 million principal amount of floating-rate notes due January 15, 2020. Interest on the notes are payable quarterly in arrears. The notes are not generally redeemable prior to maturity. These notes are senior unsecured obligations that include a change of control repurchase provision. The net proceeds were used to repay a portion of our maturing long-term debt.

In January 2016, we repaid $250 million of 0.875 percent fixed-rate notes and $750 million of floating-rate notes.

In April 2015, we issued €500.0 million principal amount of 1.0 percent fixed-rate notes due April 27, 2023 and €400.0 million principal amount of 1.5 percent fixed-rate notes due April 27, 2027. Interest on the notes is payable annually in arrears. The notes may be redeemed in whole, or in part, at our option at any time at the applicable redemption price. These notes are senior unsecured obligations that include a change of control repurchase provision. The net proceeds were used for general corporate purposes and to reduce our commercial paper borrowings.

In March 2015, we repaid $750.0 million of 5.2 percent notes.

In October 2014, we issued $500.0 million aggregate principal amount of 1.4 percent fixed-rate notes due October 20, 2017 and $500.0 million aggregate principal amount of 2.2 percent fixed-rate notes due October 21, 2019. Interest on the notes is payable semi-annually in arrears. The notes may be redeemed in whole, or in part, at our option at any time at the applicable redemption price. The notes are senior unsecured obligations that include a change of control repurchase provision. The net proceeds were used to fund our acquisition of Annie's and for general corporate purposes.

In June 2014, our subsidiary, Yoplait S.A.S., issued €200.0 million principal amount of 2.2 percent fixed-rate senior notes due June 24, 2021 in a private placement offering. Interest on the notes is payable semi-annually in arrears. The notes may be redeemed in whole, or in part, at our subsidiary’s option at any time at the applicable redemption price. The notes are senior unsecured obligations that include a change of control repurchase provision. The net proceeds were used to refinance existing debt.

In June 2014, we repaid €290.0 million of floating-rate notes.

A summary of our long-term debt is as follows:

In Millions		May 29, 2016		May 31, 2015
5.65% notes due February 15, 2019	$	1,150.0	$	1,150.0
5.7% notes due February 15, 2017		1,000.0		1,000.0
3.15% notes due December 15, 2021		1,000.0		1,000.0
Euro-denominated 2.1% notes due November 16, 2020		555.8		549.4
Euro-denominated 1.0% notes due April 27, 2023		555.8		549.4
Floating-rate euro-denominated notes due January 15, 2020		555.8		-
1.4% notes due October 20, 2017		500.0		500.0
5.4% notes due June 15, 2040		500.0		500.0
4.15% notes due February 15, 2043		500.0		500.0
3.65% notes due February 15, 2024		500.0		500.0
2.2% notes due October 21, 2019		500.0		500.0
Floating-rate notes due January 29, 2016		-		500.0
Euro-denominated 1.5% notes due April 27, 2027		444.6		439.5
0.875% notes due January 29, 2016		-		250.0
Floating-rate notes due January 28, 2016		-		250.0
Euro-denominated 2.2% notes due June 24, 2021		221.0		219.7
Medium-term notes, 0.02% to 6.44%, due fiscal 2017 or later		204.2		204.2
Other, including debt issuance costs and capital leases		(26.1)		(36.5)
		8,161.1		8,575.7
Less amount due within one year		(1,103.4)		(1,000.4)
Total long-term debt	$	7,057.7	$	7,575.3

Principal payments due on long-term debt in the next five years based on stated contractual maturities, our intent to redeem, or put rights of certain note holders are $1,103.4 million in fiscal 2017, $604.7 million in fiscal 2018, $1,150.4 million in fiscal 2019, $1,056.0 million in fiscal 2020, and $555.9 million in fiscal 2021.

Certain of our long-term debt agreements contain restrictive covenants. As of May 29, 2016, we were in compliance with all of these covenants.

As of May 29, 2016, the $49.5 million pre-tax loss recorded in AOCI associated with our previously designated interest rate swaps will be reclassified to net interest over the remaining lives of the hedged transactions. The amount expected to be reclassified from AOCI to net interest in fiscal 2017 is a $10.0 million pre-tax loss.