Debt

12 Months Ended

May 30, 2021

Debt [Abstract]

Debt

NOTE 9. 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 30, 2021				May 31, 2020
In Millions		Notes Payable	Weighted- Average Interest Rate			Notes Payable	Weighted- Average Interest Rate
U.S. commercial paper	$	-	-	%	$	99.9	3.6	%
Financial institutions		361.3	3.4	%		179.1	5.1	%
Total	$	361.3	3.4	%	$	279.0	4.6	%

To ensure availability of funds, we maintain bank credit lines and 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 30, 2021:

In Billions		Facility Amount		Borrowed Amount
Credit facility expiring:
April 2026	$	2.7	$	-
September 2022		0.2		-
Total committed credit facilities		2.9		-
Uncommitted credit facilities		0.6		0.4
Total committed and uncommitted credit facilities	$	3.5	$	0.4

In the fourth quarter of fiscal 2021, we entered into a $2.7 billion fee-paid committed credit facility that is scheduled to expire in April 2026. Concurrent with the execution of this credit facility, we terminated our existing $2.7 billion credit facility.

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 30, 2021.

LONG-TERM DEBT

In the fourth quarter of fiscal 2021, we repaid $600.0 million of 3.2 percent fixed-rate notes and $850.0 million of floating-rate notes with cash on hand.

In the third quarter of fiscal 2021, we completed an offer to exchange certain series of outstanding notes for a combination of newly issued notes and cash. Holders exchanged $603.9 million of notes previously issued with rates between 4.15 percent and 5.4 percent for $605.2 million of newly issued 3.0 percent fixed-rate notes due February 1, 2051 and $201.4 million of cash, representing a participation incentive.

In the second quarter of fiscal 2021, we issued €500.0 million principal amount of 0.0 percent fixed-rate notes due November 16, 2021. We used the net proceeds to repay €200.0 million of 0.0 percent fixed-rate notes and for general corporate purposes.

In the first quarter of fiscal 2021, we issued €500.0 million principal amount of 0.0 percent fixed-rate notes due August 21, 2021. We used the net proceeds, together with cash on hand, to repay €500.0 million of 2.1 percent fixed-rate notes.

Subsequent to the end of fiscal 2021, we repaid €200.0 million of 2.2 percent fixed-rate notes due June 24, 2021 using proceeds from the issuance of €50.0 million of 2.2 percent fixed-rate notes due November 29, 2021 and borrowings under a committed credit facility.

In the fourth quarter of fiscal 2020, we issued $750.0 million of 2.875 percent fixed-rate notes due April 15, 2030. We used the net proceeds to repay a portion of our outstanding commercial paper and for general corporate purposes.

In the third quarter of fiscal 2020, we issued €600.0 million of 0.45 percent fixed-rate notes due January 15, 2026 and €200.0 million of 0.0 percent fixed-rate notes due November 16, 2020. We used the net proceeds, together with cash on hand, to repay €500.0 million of floating-rate notes and €300.0 million of 0.0 percent fixed-rate notes.

In the second quarter of fiscal 2020, we repaid $500.0 million of 2.2 percent fixed-rate notes with proceeds from commercial paper.

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

In Millions		May 30, 2021		May 31, 2020
4.2% notes due April 17, 2028	$	1,400.0	$	1,400.0
3.15% notes due December 15, 2021		1,000.0		1,000.0
3.7% notes due October 17, 2023		850.0		850.0
Floating-rate notes due April 16, 2021		-		850.0
4.0% notes due April 17, 2025		800.0		800.0
3.2% notes due February 10, 2027		750.0		750.0
2.875% notes due April 15, 2030		750.0		750.0
Euro-denominated 0.45% notes due January 15, 2026		731.5		666.1
4.7% notes due April 17, 2048		446.2		650.0
3.2% notes due April 16, 2021		-		600.0
Euro-denominated 2.1% notes due November 16, 2020		-		555.1
Euro-denominated 1.0% notes due April 27, 2023		609.6		555.1
4.55% notes due April 17, 2038		282.4		500.0
2.6% notes due October 12, 2022		500.0		500.0
5.4% notes due June 15, 2040		382.5		500.0
4.15% notes due February 15, 2043		434.9		500.0
3.65% notes due February 15, 2024		500.0		500.0
Euro-denominated 1.5% notes due April 27, 2027		487.7		444.0
Floating-rate notes due October 17, 2023		400.0		400.0
Euro-denominated 2.2% notes due June 24, 2021		243.9		222.0
Euro-denominated 0.0% notes due November 16, 2020		-		222.0
Medium-term notes, 0.56% to 6.41%, due fiscal 2023 or later		104.0		104.2
Euro-denominated 0.0% notes due August 21, 2021		609.6		-
Euro-denominated 0.0% notes due November 16, 2021		609.6		-
3.0% notes due February 1, 2051		605.2		-
Other, including debt issuance costs, debt exchange participation premium, and finance leases		(246.4)		(58.0)
		12,250.7		13,260.5
Less amount due within one year		(2,463.8)		(2,331.5)
Total long-term debt	$	9,786.9	$	10,929.0

Principal payments due on long-term debt and finance leases in the next five fiscal years based on stated contractual maturities, our intent to redeem, or put rights of certain note holders are as follows:

In Millions
Fiscal 2022	$	2,463.8
Fiscal 2023		1,210.3
Fiscal 2024		1,754.4
Fiscal 2025		800.0
Fiscal 2026		731.5

Certain of our long-term debt agreements contain restrictive covenants. As of May 30, 2021, we were in compliance with all of these covenants.

As of May 30, 2021, the $26.3 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 2022 is a $4.8 million pre-tax loss.