Annual report pursuant to Section 13 and 15(d)

Debt

v3.21.2
Debt
 12 Months Ended
Sep. 26, 2021
Debt Disclosure [Abstract]  
Debt Debt
Long-term Debt. The following table provides a summary of our long-term debt and current portion of long-term debt:
September 26, 2021 September 27, 2020
Maturities Amount
(in millions)		 Effective Rate Maturities Amount
(in millions)		 Effective Rate
May 2015 Notes
2022 - 2045
 $ 5,405 
2.63% - 4.73%
2022 - 2045
 $ 5,405 
2.62% - 4.73%
May 2017 Notes
2023 - 2047
 5,860 
0.92% - 4.46%
2023 - 2047
 5,860 
1.06% - 4.46%
May 2020 Notes
2030 - 2050
 2,000 
2.31% - 3.30%
2030 - 2050
 2,000 
2.31% - 3.30%
August 2020 Notes
2028 - 2032
 2,207 
1.98% - 2.66%
2028 - 2032
 2,207 
1.96% - 2.65%
Total principal 15,472  15,472 
Unamortized discount, including debt issuance costs (234) (260)
Hedge accounting adjustments 7  14 
Total long-term debt $ 15,245  $ 15,226 
Reported as:
Short-term debt $ 1,544  $ — 
Long-term debt 13,701  15,226 
   Total $ 15,245  $ 15,226 
At September 26, 2021, future principal payments were $1.5 billion in fiscal 2022, $1.5 billion in fiscal 2023, $914 million in fiscal 2024, $1.4 billion in fiscal 2025 and $10.2 billion after fiscal 2026. At September 26, 2021, the aggregate fair value of the notes, based on Level 2 inputs, was approximately $17.0 billion.
At September 26, 2021, with the exception of $500 million of outstanding unsecured floating-rate notes due January 30, 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. We may not redeem the outstanding floating-rate notes prior to maturity. 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 quarterly for the floating-rate notes and semi-annually for the fixed-rate notes. Cash interest paid related to our commercial paper program and long-term debt, net of cash received from the related interest rate swaps, was $477 million, $507 million and $563 million during fiscal 2021, 2020 and 2019, respectively.
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 used for general corporate purposes. Maturities of commercial paper can range from 1 to up to 397 days. At September 26, 2021 and September 27, 2020, we had $500 million of outstanding commercial paper recorded as short-term debt with a weighted-average interest rate of 0.13% and 0.21%, respectively, which included fees paid to the commercial paper dealers. At September 26, 2021 and September 27, 2020, the weighted-average remaining days to maturity were 39 days and 37 days, respectively. The carrying value of the outstanding commercial paper approximated its estimated fair value at September 26, 2021.
Revolving Credit Facility. On December 8, 2020, we entered into a Revolving Credit Facility replacing our prior Amended and Restated Revolving Credit Facility. There were no outstanding borrowings under the Amended and Restated Revolving Credit Facility at the time of termination and September 27, 2020. The Revolving Credit Facility provides for unsecured revolving facility loans, swing line loans and letters of credit in an aggregate amount of up to $4.5 billion, which expires on December 8, 2025. At September 26, 2021, 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, issuing securities or repurchasing securities issued by us or our subsidiaries. At September 26, 2021, we were in compliance with the applicable covenants under the Revolving Credit Facility.