DEBT

12 Months Ended

May 28, 2017

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 28, 2017				May 29, 2016
In Millions		NotesPayable	Weighted-AverageInterest Rate			NotesPayable	Weighted-AverageInterest Rate
U.S. commercial paper	$	954.7	1.1	%	$	-	-	%
Financial institutions		279.4	7.0			269.8	8.6
Total	$	1,234.1	2.4	%	$	269.8	8.6	%

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 28, 2017:

In Billions		Facility Amount		Borrowed Amount
Credit facility expiring:
May 2022	$	2.7	$	-
June 2019		0.2		0.1
Total committed credit facilities		2.9		0.1
Uncommitted credit facilities		0.5		0.1
Total committed and uncommitted credit facilities	$	3.4	$	0.2

In fiscal 2016, we entered into a $2.7 billion fee-paid committed credit facility that was scheduled to expire in May 2021. In fiscal 2017, we amended the credit facility’s expiration date by one year to May 2022.

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 28, 2017.

Long-Term Debt

In March 2017, we issued €300.0 million principal amount of floating-rate notes due March 20, 2019. Interest on the notes is 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 outstanding commercial paper.

In February 2017, we repaid $1.0 billion of 5.7 percent fixed-rate notes.

In January 2017, we issued $750.0 million principal amount of 3.2 percent fixed-rate notes due February 10, 2027. Interest on the notes is payable semi-annually in arrears. We may redeem the notes in whole or in part 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 repay a portion of our maturing 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 fixed-rate notes.

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

In Millions		May 28, 2017		May 29, 2016
5.65% notes due February 15, 2019	$	1,150.0	$	1,150.0
5.7% notes due February 15, 2017		-		1,000.0
3.15% notes due December 15, 2021		1,000.0		1,000.0
3.2% notes due February 10, 2027		750.0		-
Euro-denominated 2.1% notes due November 16, 2020		559.2		555.8
Euro-denominated 1.0% notes due April 27, 2023		559.2		555.8
Euro-denominated floating-rate notes due January 15, 2020		559.2		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
Euro-denominated 1.5% notes due April 27, 2027		447.3		444.6
Euro-denominated floating-rate notes due March 20, 2019		335.5		-
Euro-denominated 2.2% notes due June 24, 2021		222.8		221.0
Medium-term notes, 0.02% to 6.59%, due fiscal 2018 or later		204.2		204.2
Other, including debt issuance costs and capital leases		(39.8)		(26.1)
		8,247.6		8,161.1
Less amount due within one year		(604.7)		(1,103.4)
Total long-term debt	$	7,642.9	$	7,057.7

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 $604.7 million in fiscal 2018, $1,585.9 million in fiscal 2019, $1,062.5 million in fiscal 2020, $559.4 million in fiscal 2021, and $1,001.1 million in fiscal 2022.

Certain of our long-term debt agreements contain restrictive covenants. As of May 28, 2017, we were in compliance with all of these covenants.

As of May 28, 2017, the $23.0 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 2018 is a $6.7 million pre-tax loss.