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Borrowings
6 Months Ended
Jan. 26, 2019
Debt Disclosure [Abstract]  
Borrowings
Borrowings
(a)
Short-Term Debt
The following table summarizes our short-term debt (in millions, except percentages):
 
January 26, 2019
 
July 28, 2018
 
Amount
 
Effective Rate
 
Amount
 
Effective Rate
Current portion of long-term debt
$
9,737

 
3.62
%
 
$
5,238

 
3.46
%

We repaid our senior notes due on February 15, 2019 for an aggregate principal amount of $2.0 billion upon maturity.
We have a short-term debt financing program of up to $10.0 billion through the issuance of commercial paper notes. We use the proceeds from the issuance of commercial paper notes for general corporate purposes. We had no commercial paper notes outstanding as of January 26, 2019 and July 28, 2018. As of February 18, 2019, we had approximately $2 billion of commercial paper notes outstanding.
The effective rates for the short- and long-term debt include the interest on the notes, the accretion of the discount, the issuance costs, and, if applicable, adjustments related to hedging.
(b)
Long-Term Debt
The following table summarizes our long-term debt (in millions, except percentages):
 
 
 
January 26, 2019
 
July 28, 2018
 
Maturity Date
 
Amount
 
Effective Rate
 
Amount
 
Effective Rate
Senior notes:
 
 
 
 
 
 
 
 
 
Floating-rate notes:
 
 
 
 
 
 
 
 
 
Three-month LIBOR plus 0.50%
March 1, 2019
 
$
500

 
3.30%
 
$
500

 
2.86%
Three-month LIBOR plus 0.34%
September 20, 2019
 
500

 
3.17%
 
500

 
2.71%
Fixed-rate notes:
 
 
 
 
 
 
 
 
 
4.95%
February 15, 2019
 
2,000

 
5.28%
 
2,000

 
5.17%
1.60%
February 28, 2019
 
1,000

 
1.67%
 
1,000

 
1.67%
2.125%
March 1, 2019
 
1,750

 
3.13%
 
1,750

 
2.71%
1.40%
September 20, 2019
 
1,500

 
1.48%
 
1,500

 
1.48%
4.45%
January 15, 2020
 
2,500

 
4.87%
 
2,500

 
4.52%
2.45%
June 15, 2020
 
1,500

 
2.54%
 
1,500

 
2.54%
2.20%
February 28, 2021
 
2,500

 
2.30%
 
2,500

 
2.30%
2.90%
March 4, 2021
 
500

 
3.28%
 
500

 
2.86%
1.85%
September 20, 2021
 
2,000

 
1.90%
 
2,000

 
1.90%
3.00%
June 15, 2022
 
500

 
3.55%
 
500

 
3.11%
2.60%
February 28, 2023
 
500

 
2.68%
 
500

 
2.68%
2.20%
September 20, 2023
 
750

 
2.27%
 
750

 
2.27%
3.625%
March 4, 2024
 
1,000

 
3.40%
 
1,000

 
2.98%
3.50%
June 15, 2025
 
500

 
3.71%
 
500

 
3.27%
2.95%
February 28, 2026
 
750

 
3.01%
 
750

 
3.01%
2.50%
September 20, 2026
 
1,500

 
2.55%
 
1,500

 
2.55%
5.90%
February 15, 2039
 
2,000

 
6.11%
 
2,000

 
6.11%
5.50%
January 15, 2040
 
2,000

 
5.67%
 
2,000

 
5.67%
Total
 
 
25,750

 
 
 
25,750

 
 
Unaccreted discount/issuance costs
 
 
(107
)
 
 
 
(116
)
 
 
Hedge accounting fair value adjustments
 
 
(13
)
 
 
 
(65
)
 
 
Total
 
 
$
25,630

 
 
 
$
25,569

 
 
 
 
 
 
 
 
 
 
 
 
Reported as:
 
 
 
 
 
 
 
 
 
Current portion of long-term debt
 
 
$
9,737

 
 
 
$
5,238

 
 
Long-term debt
 
 
15,893

 
 
 
20,331

 
 
Total
 
 
$
25,630

 
 
 
$
25,569

 
 

We entered into interest rate swaps in prior periods with an aggregate notional amount of $6.75 billion designated as fair value hedges of certain of our fixed-rate senior notes. These swaps convert the fixed interest rates of the fixed-rate notes to floating interest rates based on the London InterBank Offered Rate ("LIBOR"). The gains and losses related to changes in the fair value of the interest rate swaps substantially offset changes in the fair value of the hedged portion of the underlying debt that are attributable to the changes in market interest rates. For additional information, see Note 12.
Interest is payable semiannually on each class of the senior fixed-rate notes and payable quarterly on the floating-rate notes. Each of the senior fixed-rate notes is redeemable by us at any time, subject to a make-whole premium. The senior notes rank at par with the commercial paper notes that may be issued in the future pursuant to our short-term debt financing program, as discussed above under “(a) Short-Term Debt.” As of January 26, 2019, we were in compliance with all debt covenants.
As of January 26, 2019, future principal payments for long-term debt, including the current portion, are summarized as follows (in millions):
Fiscal Year
Amount
2019 (remaining six months)
$
5,250

2020
6,000

2021
3,000

2022
2,500

2023
500

Thereafter
8,500

Total
$
25,750


(c)
Credit Facility
On May 15, 2015, we entered into a credit agreement with certain institutional lenders that provides for a $3.0 billion unsecured revolving credit facility that is scheduled to expire on May 15, 2020. Any advances under the credit agreement will accrue interest at rates that are equal to, based on certain conditions, either (i) the highest of (a) the Federal Funds rate plus 0.50%, (b) Bank of America’s “prime rate” as announced from time to time, or (c) LIBOR, or a comparable or successor rate that is approved by the Administrative Agent (“Eurocurrency Rate”), for an interest period of one-month plus 1.00%, or (ii) the Eurocurrency Rate, plus a margin that is based on our senior debt credit ratings as published by Standard & Poor’s Financial Services, LLC and Moody’s Investors Service, Inc., provided that in no event will the Eurocurrency Rate be less than zero. We may also, upon the agreement of either the then-existing lenders or additional lenders not currently parties to the agreement, increase the commitments under the credit facility by up to an additional $2.0 billion and/or extend the expiration date of the credit facility up to May 15, 2022.
This credit agreement requires that we comply with certain covenants, including that we maintain an interest coverage ratio as defined in the agreement. As of January 26, 2019, we were in compliance with the required interest coverage ratio and the other covenants, and we had not borrowed any funds under this credit facility.