Quarterly report pursuant to Section 13 or 15(d)

Borrowings

v3.20.2
Borrowings
6 Months Ended
Jun. 27, 2020
Debt Disclosure [Abstract]  
Borrowings
NOTE 9 : BORROWINGS
As of June 27, 2020, our short-term debt was $2.3 billion, primarily comprised of the current portion of our long-term debt ($3.7 billion as of December 28, 2019).
We have an ongoing authorization from our Board of Directors to borrow up to $10.0 billion under our commercial paper program.
LONG-TERM DEBT
Jun 27, 2020 Dec 28, 2019
(In Millions)
Effective Interest Rate
Amount
Amount
Floating-rate senior notes:
Three-month LIBOR plus 0.08%, due May 2020 —  % $ —    $ 700   
Three-month LIBOR plus 0.35%, due May 2022 1.82  % 800    800   
Fixed-rate senior notes:
1.85%, due May 2020 —  % —    1,000   
2.45%, due July 2020 2.48  % 1,750    1,750   
1.70%, due May 2021 1.78  % 500    500   
3.30%, due October 2021 2.98  % 2,000    2,000   
2.35%, due May 2022 1.95  % 750    750   
3.10%, due July 2022 2.69  % 1,000    1,000   
4.00%, due December 2022¹ 3.11  % 379    382   
2.70%, due December 2022 2.28  % 1,500    1,500   
4.10%, due November 2023 3.21  % 400    400   
2.88%, due May 2024 2.31  % 1,250    1,250   
2.70%, due June 2024 2.13  % 600    600   
3.40%, due March 2025 3.46  % 1,500    —   
3.70%, due July 2025 3.48  % 2,250    2,250   
2.60%, due May 2026 1.94  % 1,000    1,000   
3.75%, due March 2027 3.80  % 1,000    —   
3.15%, due May 2027 2.48  % 1,000    1,000   
2.45%, due November 2029 2.39  % 2,000    1,250   
3.90%, due March 2030 3.94  % 1,500    —   
4.00%, due December 2032 2.30  % 750    750   
4.60%, due March 2040 4.62  % 750    —   
4.80%, due October 2041 3.53  % 802    802   
4.25%, due December 2042 2.48  % 567    567   
4.90%, due July 2045 3.45  % 772    772   
4.10%, due May 2046 2.76  % 1,250    1,250   
4.10%, due May 2047 2.63  % 1,000    1,000   
4.10%, due August 2047 2.20  % 640    640   
3.73%, due December 2047 2.89  % 1,967    1,967   
3.25%, due November 2049 3.19  % 2,000    1,500   
4.75%, due March 2050 4.76  % 2,250    —   
3.10%, due February 2060 3.12  % 1,000    —   
4.95%, due March 2060 5.00  % 1,000    —   
Oregon and Arizona bonds:
2.40%-2.70%, due December 2035 - 2040
2.49  % 423    423   
5.00%, due March 2049 2.12  % 138    138   
5.00%, due June 2049 2.15  % 438    438   
Junior Subordinated Convertible Debentures:
3.25%, due August 2039 —    —    372   
Total Senior Notes and Other Borrowings
36,926    28,751   
Unamortized Premium/Discount and Issuance Costs
(375)   (529)  
Hedge Accounting Fair Value Adjustments
1,796    781   
Long-term debt
38,347    29,003   
Current portion of long-term debt
(2,254)   (3,695)  
Total long-term debt $ 36,093    $ 25,308   
To manage foreign currency risk associated with the Australian-dollar-denominated notes issued in 2015, we entered into currency interest rate swaps with an aggregate notional amount of $396 million, which effectively converted these notes to U.S.-dollar-denominated notes. For further discussion on our currency interest rate swaps, see "Note 12: Derivative Financial Instruments."
In the first six months of 2020, we settled $2.1 billion in short-term debt. In the first quarter of 2020, the remaining $372 million of our 2009 Debentures were converted or redeemed, and in the second quarter of 2020, we settled $1.7 billion of our notes due May 2020.
In the first six months of 2020, we issued a total of $10.3 billion aggregate principal amount of senior notes. We intend to use the net proceeds from the offering for general corporate purposes, which may include refinancing outstanding debt, funding for working capital and capital expenditures, and repurchasing shares of our common stock. 
Our senior floating rate notes pay interest quarterly and our senior fixed rate notes pay interest semiannually. We may redeem the fixed rate notes prior to their maturity at our option at specified redemption prices and subject to certain restrictions. The obligations under the notes rank equally in right of payment with all of our other existing and future senior unsecured indebtedness and effectively rank junior to all liabilities of our subsidiaries.