The following table presents the components of notes payable at June 29, 2013 and December 29, 2012:

(millions)		June 29, 2013				December 29, 2012
		Principal amount	Effective interest rate			Principal amount	Effective interest rate

U.S. commercial paper	$	836	0.22	%	$	853	0.26	%
Europe commercial paper		241	0.18			159	0.18
Bank borrowings		59				53
Total	$	1,136			$	1,065

In the first quarter of 2013, the Company terminated interest rate swaps with notional amounts totaling $250 million, which were designated as fair value hedges of its 3.25% fixed rate U.S. Dollar Notes due 2018. The interest rate swaps effectively converted the interest rate on the Notes from fixed to variable and the unrealized gain upon termination of $12 million will be amortized to interest expense over the remaining term of the notes.

In the second quarter of 2013, the Company terminated interest rate swaps with notional amounts totaling $1.4 billion, which were designated as fair value hedges for (a) $750 million of its 4.45% fixed rate U.S. Dollar Notes due 2016, (b) $500 million of its 1.875% fixed rate U.S. Dollar Notes due 2016 and (c) $150 million of its 3.25% fixed rate U.S. Dollar Notes due 2018 (collectively, the Notes). The interest rate swaps effectively converted the interest rate on the Notes from fixed to variable and the unrealized gain upon termination of $41 million will be amortized to interest expense over the remaining term of the Notes.

In February 2013, the Company issued $250 million of floating rate U.S. Dollar Notes bearing interest at LIBOR plus 0.23% due February 2015 and $400 million of ten-year 2.75% U.S. Dollar Notes, resulting in aggregate net proceeds after debt discount and commissions of $645 million. The proceeds from these Notes were used for general corporate purposes, including, together with cash on hand, the repayment of $749 million aggregate principal amount of the Company's 4.25% U.S. Dollar Notes that matured on March 6, 2013. The Notes contain customary covenants that limit the ability of the Company and its restricted subsidiaries (as defined) to incur certain liens or enter into certain sale and lease-back transactions, as well as a change of control provision.

In the first half of 2013, the Company entered into interest rate swaps with notional amounts totaling $1.9 billion, which effectively converted a portion of the associated U.S. Dollar Notes from fixed rate to floating rate obligations. The effective interest rates on debt obligations resulting from the Company's interest rate swaps as of June 29, 2013 were as follows: (a) seven-year 4.45% U.S. Dollar Notes due 2016 – 3.47%; (b) five-year 1.875% U.S. Dollar Notes due 2016 – 1.02%; (c) five-year 1.75% U.S. Dollar Notes due 2017 - 1.36%; (d) seven-year 3.25% U.S. Dollar Notes due 2018 – 1.87%; (e) ten-year 4.15% U.S. Dollar Notes due 2019 - 2.75%; (f) ten-year 4.00% U.S. Dollar Notes due 2020 - 2.88%; (g) ten-year 3.125% U.S. Dollar Notes due 2022 - 2.75%. These derivative instruments were designated as fair value hedges.