|12 Months Ended|
Sep. 25, 2022
|Debt Disclosure [Abstract]|
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 and current portion of long-term debt:
At September 25, 2022, future principal payments were $1.4 billion in fiscal 2023, $914 million in fiscal 2024, $1.4 billion in fiscal 2025, $2.0 billion in fiscal 2027 and $9.7 billion after fiscal 2027; no principal payments are due in fiscal 2026. At September 25, 2022, the aggregate fair value of the notes, based on Level 2 inputs, was approximately $14.0 billion.
At September 25, 2022, 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 $491 million, $477 million and $507 million during fiscal 2022, 2021 and 2020, respectively.
Interest Rate Swaps. At September 25, 2022 and September 26, 2021, we had outstanding forward-starting interest rate swaps with an aggregate notional amount of $1.6 billion and $2.6 billion, respectively. During the third quarter of fiscal 2022, we terminated $1 billion of 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 over the terms of the related debt.
At 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 25, 2022 and September 26, 2021, we had $499 million and $500 million, respectively, of outstanding commercial paper recorded as short-term debt with a weighted-average interest rate of 2.69% and 0.13%, respectively, which included fees paid to the commercial paper dealers. At September 25, 2022 and September 26, 2021, the weighted-average remaining days to maturity were 27 days and 39 days, respectively. The carrying value of the outstanding commercial paper approximated its estimated fair value at September 25, 2022.
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 $4.5 billion, which expires on December 8, 2025. At 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 25, 2022, we were in compliance with the applicable covenants under the Revolving Credit Facility.
The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef