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Borrowings
 6 Months Ended
Jan. 29, 2022
Debt Disclosure [Abstract]  
Borrowings Borrowings
(a)Short-Term Debt
The following table summarizes our short-term debt (in millions, except percentages):
 January 29, 2022July 31, 2021
 AmountEffective RateAmountEffective Rate
Current portion of long-term debt$502 1.14 %$2,508 1.75 %
Commercial paper2,000 0.15 %— — 
Total short-term debt$2,502 $2,508 
We have a short-term debt financing program of up to $10.0 billion through the issuance of commercial paper notes. We use the proceeds from the issuance of commercial paper notes for general corporate purposes.
The effective rates for the short- and long-term debt include the interest on the notes, the accretion of the discount, the issuance costs, and, if applicable, adjustments related to hedging.
(b)Long-Term Debt
The following table summarizes our long-term debt (in millions, except percentages):
 January 29, 2022July 31, 2021
 Maturity DateAmountEffective RateAmountEffective Rate
Senior notes:
Fixed-rate notes:
1.85%September 20, 2021$— —$2,000 1.90%
3.00%June 15, 2022500 1.14%500 1.13%
2.60%February 28, 2023500 2.68%500 2.68%
2.20%September 20, 2023750 2.27%750 2.27%
3.625%March 4, 20241,000 1.00%1,000 1.00%
3.50%June 15, 2025500 1.31%500 1.29%
2.95%February 28, 2026750 3.01%750 3.01%
2.50%September 20, 20261,500 2.55%1,500 2.55%
5.90%February 15, 20392,000 6.11%2,000 6.11%
5.50%January 15, 20402,000 5.67%2,000 5.67%
Total9,500 11,500 
Unaccreted discount/issuance costs(77)(80)
Hedge accounting fair value adjustments48 106 
Total$9,471 $11,526 
Reported as:
Current portion of long-term debt$502 $2,508 
Long-term debt8,969 9,018 
Total$9,471 $11,526 
We have entered into interest rate swaps in prior periods with an aggregate notional amount of $2.0 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 13.
Interest is payable semiannually on each class of the senior fixed-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 29, 2022, we were in compliance with all debt covenants.
As of January 29, 2022, future principal payments for long-term debt, including the current portion, are summarized as follows (in millions):
Fiscal YearAmount
2022 (remaining six months)$500 
2023500 
20241,750 
2025500 
2026750 
Thereafter5,500 
Total$9,500 
(c)Credit Facility
On May 13, 2021, we entered into a 5-year credit agreement with certain institutional lenders that provides for a $3.0 billion unsecured revolving credit facility that is scheduled to expire on May 13, 2026. The credit agreement is structured as an amendment and restatement of our 364-day credit agreement, which would have terminated on May 14, 2021. As of January 29, 2022, we were in compliance with the required interest coverage ratio and the other covenants, and we had not borrowed any funds under the credit agreement.
Any advances under the 5-year credit agreement will accrue interest at rates that are equal to, based on certain conditions, either (a) with respect to loans in U.S. dollars, (i) LIBOR or (ii) the Base Rate (to be defined as the highest of (x) the Bank of America prime rate, (y) the Federal Funds rate plus 0.50% and (z) a daily rate equal to one-month LIBOR plus 1.0%), (b) with respect to loans in Euros, EURIBOR, (c) with respect to loans in Yen, TIBOR and (d) with respect to loans in Pounds Sterling, SONIA plus a credit spread adjustment, 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 interest rate be less than 0.0%. We will pay a quarterly commitment fee during the term of the 5-year credit agreement which may vary depending on our senior debt credit ratings. In addition, the 5-year credit agreement incorporates certain sustainability-linked metrics. Specifically, our applicable interest rate and commitment fee are subject to upward or downward adjustments if we achieve, or fail to achieve, certain specified targets based on two key performance indicator metrics: (i) social impact and (ii) foam reduction. 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, at our option, extend the maturity of the facility for an additional year up to two times. The credit agreement requires that we comply with certain covenants, including that we maintain an interest coverage ratio as defined in the agreement.