Annual report pursuant to Section 13 and 15(d)

Debt

v3.23.3
Debt
 12 Months Ended
Sep. 24, 2023
Debt Disclosure [Abstract]  
Debt Debt
Long-term Debt. In November 2022, we issued unsecured fixed-rate notes, consisting of $700 million of fixed-rate 5.40% notes and $1.2 billion of fixed-rate 6.00% notes (collectively, November 2022 Notes) that mature on May 20, 2033 and May 20, 2053, respectively. The net proceeds from the November 2022 Notes were used to repay $946 million of fixed-rate notes and $500 million of floating-rate notes that matured in January 2023 and the excess was used for general corporate purposes.
The following table provides a summary of our long-term debt and current portion of long-term debt:
September 24, 2023 September 25, 2022
Maturities Amount
(in millions)		 Effective Rate Maturities Amount
(in millions)		 Effective Rate
May 2015 Notes
2025 - 2045
 $ 3,865 
3.46% - 4.73%
2025 - 2045
 $ 3,865 
3.46% - 4.73%
May 2017 Notes
2024 - 2047
 4,414 
3.00% - 4.45%
2023 - 2047
 5,860 
2.68% - 4.46%
May 2020 Notes
2030 - 2050
 2,000 
3.22% - 3.30%
2030 - 2050
 2,000 
2.97% - 3.30%
August 2020 Notes
2028 - 2032
 2,207 
2.65% - 3.89%
2028 - 2032
 2,207 
2.50% - 3.52%
May 2022 Notes
2032 - 2052
 1,500 
3.15% - 4.27%
2032 - 2052
 1,500 
3.13% - 4.26%
November 2022 Notes
2033 - 2053
 1,900 
3.47% - 5.02%
 — 
Total principal 15,886  15,432 
Unamortized discount, including debt issuance costs (238) (241)
Hedge accounting adjustments (250) (208)
Total long-term debt $ 15,398  $ 14,983 
Reported as:
Short-term debt $ 914  $ 1,446 
Long-term debt 14,484  13,537 
   Total $ 15,398  $ 14,983 
At September 24, 2023, future principal payments were $914 million in fiscal 2024, $1.4 billion in fiscal 2025, $2.0 billion in fiscal 2027, $961 million in fiscal 2028 and $10.6 billion after fiscal 2028; no principal payments are due in fiscal 2026. At September 24, 2023, the aggregate fair value of the notes, based on Level 2 inputs, was approximately $14.3 billion.
At September 24, 2023, all of our outstanding long-term debt is comprised of unsecured fixed-rate notes. We may redeem the outstanding fixed-rate notes at any time in whole, or from time to time in part, at specified make-whole premiums as defined in the applicable form of note. The obligations under the notes rank equally in right of payment with all of our other senior unsecured indebtedness and will effectively rank junior to all liabilities of our subsidiaries.
The effective interest rates for the notes include the interest on the notes, amortization of the discount, which includes debt issuance costs, and if applicable, adjustments related to hedging. Interest is payable in arrears semi-annually for the notes. Cash interest paid related to our commercial paper program and long-term debt was $614 million, $491 million and $477 million during fiscal 2023, 2022 and 2021, respectively.
Interest Rate Swaps. At September 25, 2022, we had outstanding forward-starting interest rate swaps with an aggregate notional amount of $1.6 billion. During the first quarter of fiscal 2023, in connection with the issuance of the November 2022 Notes, we terminated these swaps, and the related gains of $334 million, included within accumulated comprehensive income, are being recorded as a reduction to interest expense over the hedged portions of the related debt.
At September 24, 2023 and September 25, 2022, we had outstanding interest rate swaps with an aggregate notional amount of $2.1 billion that are designated as fair value hedges and allow us to effectively convert fixed-rate payments into floating-rate payments on a portion of our outstanding long-term debt.
Commercial Paper Program. We have an unsecured commercial paper program, which provides for the issuance of up to $4.5 billion. Net proceeds from this program are for general corporate purposes. Maturities of commercial paper can range from 1 to up to 397 days. At September 24, 2023 and September 25, 2022, we had no amounts and $499 million, respectively, of outstanding commercial paper recorded as short-term debt. At September 25, 2022, the weighted-average interest rate was 2.69%, which included fees paid to the commercial paper dealers, and the weighted-average remaining days to maturity was 27 days.
Revolving Credit Facility. We have a Revolving Credit Facility that provides for unsecured revolving facility loans, swing line loans and letters of credit in an aggregate amount of up to $4.3 billion, which expires on December 8, 2025. At September 24, 2023 and September 25, 2022, no amounts were outstanding under the Revolving Credit Facility.
Debt Covenants. The Revolving Credit Facility requires that we comply with certain covenants, including that we maintain an interest coverage ratio as defined in the agreement. We are not subject to any financial covenants under the notes nor any covenants that would prohibit us from incurring additional indebtedness ranking equal to the notes, paying dividends or issuing securities or repurchasing securities issued by us or our subsidiaries. At September 24, 2023, we were in compliance with the applicable covenants under the Revolving Credit Facility.