Borrowings

12 Months Ended

Jul. 27, 2024

Debt Disclosure [Abstract]

Borrowings

Borrowings

(a)Short-Term Debt

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

	July 27, 2024				July 29, 2023
	Amount		Effective Rate		Amount		Effective Rate
Current portion of long-term debt	$	488	6.66	%	$	1,733	4.45	%
Commercial paper	10,853		5.43	%	—		—
Total	$	11,341			$	1,733

We have a short-term debt financing program of up to $15.0 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):

		July 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		6.08%
3.50%	June 15, 2025	500		6.66%	500		6.38%
4.90%	February 26, 2026	1,000		5.00%	—		—
2.95%	February 28, 2026	750		3.01%	750		3.01%
2.50%	September 20, 2026	1,500		2.55%	1,500		2.55%
4.80%	February 26, 2027	2,000		4.90%	—		—
4.85%	February 26, 2029	2,500		4.91%	—		—
4.95%	February 26, 2031	2,500		5.04%	—		—
5.05%	February 26, 2034	2,500		4.97%	—		—
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%
5.30%	February 26, 2054	2,000		5.28%	—		—
5.35%	February 26, 2064	1,000		5.42%	—		—
Other long-term debt		3		1.13%	—		—
Total		20,253			8,500
Unaccreted discount/issuance costs		(133)			(68)
Hedge accounting fair value adjustments		(11)			(41)
Total		$	20,109		$	8,391
Reported as:
Short-term debt		$	488		$	1,733
Long-term debt		19,621			6,658
Total		$	20,109		$	8,391

In February 2024, we issued senior notes for an aggregate principal amount of $13.5 billion.

We entered into an interest rate swap in a prior period with an aggregate notional amount of $0.5 billion designated as a fair value hedge of certain of our fixed-rate senior notes. This swap converts the fixed interest rate of the fixed-rate note to a floating interest rate based on Secured Overnight Financing Rate (SOFR). The gain and loss related to the change in the fair value of the interest rate swap substantially offsets the change in the fair value of the hedged portion of the underlying debt that is attributable to the change 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 have been issued pursuant to our short-term debt financing program, as discussed above under “(a) Short-Term Debt.” As of July 27, 2024, we were in compliance with all debt covenants.

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

Fiscal Year	Amount
2025	$	500
2026	1,751
2027	3,502
2028	—
2029	2,500
Thereafter	12,000
Total	$	20,253

(c)Credit Facility

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 July 27, 2024, we were in compliance with all associated covenants and we had not borrowed any funds under our credit agreement.