Quarterly report pursuant to Section 13 or 15(d)

Debt

v3.22.2
Debt
 9 Months Ended
Jun. 26, 2022
Debt Disclosure [Abstract]  
Debt Disclosure Debt
Long-term Debt. In May 2022, we issued unsecured fixed-rate notes, consisting of $500 million of fixed-rate 4.25% notes and $1.0 billion of fixed-rate 4.50% notes (May 2022 Notes) that mature on May 20, 2032 and May 20, 2052, respectively. The net proceeds from the May 2022 Notes, together with cash on hand, were used to repay $1.5 billion of fixed-rate notes that matured in May 2022.
The following table provides a summary of our long-term debt:
June 26, 2022 September 26, 2021
Maturities Amount
(in millions)		 Effective Rate Maturities Amount
(in millions)		 Effective Rate
May 2015 Notes
2025 - 2045
 $ 3,865 
3.46% - 4.73%
2022 - 2045
 $ 5,405 
2.63% - 4.73%
May 2017 Notes
2023 - 2047
 5,860 
2.03% - 4.46%
2023 - 2047
 5,860 
0.92% - 4.46%
May 2020 Notes
2030 - 2050
 2,000 
2.73% - 3.30%
2030 - 2050
 2,000 
2.31% - 3.30%
August 2020 Notes
2028 - 2032
 2,207 
2.32% - 3.27%
2028 - 2032
 2,207 
1.98% - 2.66%
May 2022 Notes
2032 - 2052
 1,500 
3.14% - 4.26%
 — 
Total principal 15,432  15,472 
Unamortized discount, including debt issuance costs (249) (234)
Hedge accounting fair value adjustments (138) 7 
Total long-term debt $ 15,045  $ 15,245 
Reported as:
Short-term debt $ 1,445  $ 1,544 
Long-term debt 13,600  13,701 
   Total $ 15,045  $ 15,245 
At June 26, 2022, the aggregate fair value of our outstanding floating- and fixed-rate notes, based on Level 2 inputs, was approximately $14.6 billion.
Interest Rate Swaps. At September 26, 2021, we had outstanding forward-starting interest rate swaps with an aggregate notional amount, denominated in U.S. dollars, of $2.6 billion. During the third quarter of fiscal 2022, we terminated $1.0 billion of these swaps associated with our May 2022 Notes, and the related gains of $123 million are being reclassified from accumulated comprehensive income as a reduction to interest expense over the terms of the related debt.
Beginning in the second quarter of fiscal 2022, we entered into interest rate swaps 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. We entered into these agreements, in part, to manage interest rate risk associated with our cash equivalents and marketable securities, in addition to changes in the fair value of our outstanding debt. At June 26, 2022, the notional amount of these swaps, which are denominated in U.S. dollars and mature between 2027 and 2032, was $2.1 billion. The fair value of these swaps, which is included in other noncurrent liabilities, was $141 million at June 26, 2022. The net gains and losses on the interest rate swaps, as well as the offsetting gains or losses on the related fixed-rate notes attributable to the hedged risks, are recognized in earnings as interest expense in the current period.
Commercial Paper Program. We have an unsecured commercial paper program, which provides for the issuance of up to $4.5 billion. At June 26, 2022 and September 26, 2021, we had $500 million of outstanding commercial paper recorded as short-term debt.