Borrowings

6 Months Ended

Jan. 25, 2025

Debt Disclosure [Abstract]

Borrowings

Borrowings

(a)Short-Term Debt

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

	January 25, 2025				July 27, 2024
	Amount		Effective Rate		Amount		Effective Rate
Current portion of senior notes	$	496	5.66	%	$	488	6.66	%
Commercial paper	10,916		4.75	%	10,853		5.43	%
Current portion of other debt	1		1.13	%	—		—
Total	$	11,413			$	11,341

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):

		January 25, 2025			July 27, 2024
	Maturity Date	Amount		Effective Rate	Amount		Effective Rate
Senior notes:
Fixed-rate notes:
3.50%	June 15, 2025	$	500	5.66%	$	500	6.66%
4.90%	February 26, 2026	1,000		5.00%	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%	2,000		4.90%
4.85%	February 26, 2029	2,500		4.91%	2,500		4.91%
4.95%	February 26, 2031	2,500		5.04%	2,500		5.04%
5.05%	February 26, 2034	2,500		4.97%	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%	2,000		5.28%
5.35%	February 26, 2064	1,000		5.42%	1,000		5.42%
Other debt		3		1.13%	3		1.13%
Total		20,253			20,253
Unaccreted discount/issuance costs		(127)			(133)
Hedge accounting fair value adjustments		(4)			(11)
Total		$	20,122		$	20,109
Reported as:
Current portion of long-term debt		$	497		$	488
Long-term debt		19,625			19,621
Total		$	20,122		$	20,109

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 January 25, 2025, we were in compliance with all debt covenants.

As of January 25, 2025, future principal payments for long-term debt, including the current portion, are summarized as follows (in millions):

Fiscal Year	Amount
2025 (remaining six months)	$	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 January 25, 2025, we were in compliance with all associated covenants and we had not borrowed any funds under our credit agreement.