Borrowings

6 Months Ended

Jan. 27, 2024

Debt Disclosure [Abstract]

Borrowings

Borrowings

(a)Short-Term Debt

The following table summarizes our short-term debt (in millions, except percentages):

	January 27, 2024				July 29, 2023
	Amount		Effective Rate		Amount		Effective Rate
Current portion of long-term debt	$	997	6.35	%	$	1,733	4.45	%
Commercial paper	3,939		5.39	%	—		—	%
Total	$	4,936			$	1,733

Effective February 6, 2024, we increased our borrowing capacity under our existing commercial paper program from $10.0 billion to $15.0 billion. We use the proceeds from the issuance of commercial paper notes for general corporate purposes. As of February 19, 2024, we had approximately $6.9 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 27, 2024			July 29, 2023
	Maturity Date	Amount		Effective Rate	Amount		Effective Rate
Senior notes:
Fixed-rate notes:
2.20%	September 20, 2023	$	—	—	$	750	2.27%
3.625%	March 4, 2024	1,000		6.35%	1,000		6.08%
3.50%	June 15, 2025	500		6.66%	500		6.38%
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		7,750			8,500
Unaccreted discount/issuance costs		(66)			(68)
Hedge accounting fair value adjustments		(18)			(41)
Total		$	7,666		$	8,391
Reported as:
Current portion of long-term debt		$	997		$	1,733
Long-term debt		6,669			6,658
Total		$	7,666		$	8,391

We have entered into interest rate swaps in prior periods with an aggregate notional amount of $1.5 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 Secured Overnight Financing Rate (SOFR). 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 27, 2024, we were in compliance with all debt covenants.

As of January 27, 2024, future principal payments for long-term debt, including the current portion, are summarized as follows (in millions):

Fiscal Year	Amount
2024 (remaining six months)	$	1,000
2025	500
2026	750
2027	1,500
Thereafter	4,000
Total	$	7,750

(c)Credit Facility

On May 13, 2021, we entered into a 5-year $3.0 billion unsecured revolving credit agreement, as amended on April 18, 2023. On February 2, 2024, we entered into an amended and restated 5-year $5.0 billion unsecured revolving credit agreement. The interest rate for the credit agreement is determined based on a formula using certain market rates. The credit agreement requires that we comply with certain covenants, including that we maintain an interest coverage ratio (defined in the agreement as the ratio of consolidated EBITDA to consolidated interest expense) of not less than 3.0 to 1.0. As of January 27, 2024, we were in compliance with all associated covenants and we had not borrowed any funds under our credit agreement.