Note 4—Debt

In the first and second quarter of fiscal 2012, the Company’s Japanese subsidiary issued 1.18% yen-denominated promissory notes through a private placement. These notes were issued in two series, with the first funding in October 2011 and the second funding occurring in December 2011. For both series, interest is payable semi-annually, and principal is due in October 2018. The Company guarantees these notes.

On March 15, 2012, the Company paid the outstanding principal balance and associated interest on the 5.3% Senior Notes with its existing liquidity sources of cash and cash equivalents and short-term investments.

The carrying value and estimated fair value of the Company’s long-term debt consisted of the following:


	May 6, 2012				August 28, 2011
	Carrying Value		Fair Value		Carrying Value		Fair Value
5.5% Senior Notes due March 2017	$	1,097	$	1,324	$	1,097	$	1,314
5.3% Senior Notes due March 2012		0		0		900		924
2.695% Promissory Notes Due October 2017		81		90		85		94
1.18% Promissory Notes Due October 2018		125		128		0		0
Other long-term debt		70		110		71		103

Total long-term debt		1,373		1,652		2,153		2,435
Less current portion		0		0		900		924

Long-term debt, excluding current portion	$	1,373	$	1,652	$	1,253	$	1,511

The estimated fair value of the Company’s debt was based primarily on reported market values, recently completed market transactions and estimates based upon interest rates, maturities, and credit risk and is classified as Level 2 or Level 3 within the fair value hierarchy.