Annual report pursuant to Section 13 and 15(d)

Borrowings

v3.21.4
Borrowings
 12 Months Ended
Dec. 26, 2020
Debt Disclosure [Abstract]  
Borrowings [Text Block]
Note 13 : Borrowings
Short-Term Debt
Short-term debt, which primarily includes the current portion of long-term debt, was $4.6 billion as of December 25, 2021 and $2.5 billion as of December 26, 2020.
The current portion of long-term debt includes debt classified as short term based on time remaining until maturity.
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
Dec 25, 2021 Dec 26, 2020
(In Millions)
Effective Interest Rate
 Amount Amount
Floating-rate senior note:
Three-month LIBOR plus 0.35%, due May 2022 0.55% $ 800  $ 800 
Fixed-rate senior notes:
1.70%, due May 2021 —% —  500 
3.30%, due October 2021 —% —  2,000 
2.35%, due May 2022 1.96% 750  750 
3.10%, due July 2022 2.70% 1,000  1,000 
4.00%, due December 20221
2.96% 398  417 
2.70%, due December 2022 2.28% 1,500  1,500 
4.10%, due November 2023 3.22% 400  400 
2.88%, due May 2024 2.31% 1,250  1,250 
2.70%, due June 2024 2.14% 600  600 
3.40%, due March 2025 3.45% 1,500  1,500 
3.70%, due July 2025 2.16% 2,250  2,250 
2.60%, due May 2026 0.63% 1,000  1,000 
3.75%, due March 2027 3.79% 1,000  1,000 
3.15%, due May 2027 1.21% 1,000  1,000 
1.60%, due August 2028 1.68% 1,000  — 
2.45%, due November 2029 2.39% 2,000  2,000 
3.90%, due March 2030 3.93% 1,500  1,500 
2.00%, due August 2031 2.04% 1,250  — 
4.00%, due December 2032 1.24% 750  750 
4.60%, due March 2040 4.61% 750  750 
2.80%, due August 2041 2.82% 750  — 
4.80%, due October 2041 2.01% 802  802 
4.25%, due December 2042 1.42% 567  567 
4.90%, due July 2045 2.13% 772  772 
4.10%, due May 2046 1.40% 1,250  1,250 
4.10%, due May 2047 1.37% 1,000  1,000 
4.10%, due August 2047 0.92% 640  640 
3.73%, due December 2047 1.77% 1,967  1,967 
3.25%, due November 2049 3.20% 2,000  2,000 
4.75%, due March 2050 4.74% 2,250  2,250 
3.05%, due August 2051 3.07% 1,250  — 
3.10%, due February 2060 3.11% 1,000  1,000 
4.95%, due March 2060 4.99% 1,000  1,000 
3.20%, due August 2061 3.22% 750  — 
Oregon and Arizona bonds:
2.40% - 2.70%, due December 2035 - 2040 2.49% 423  423 
5.00%, due March 2049 2.13% 138  138 
5.00%, due June 2049 2.15% 438  438 
Total senior notes and other borrowings 37,695  35,214 
Unamortized premium/discount and issuance costs (405) (378)
Hedge accounting fair value adjustments 811  1,565 
Long-term debt 38,101  36,401 
Current portion of long-term debt (4,591) (2,504)
Total long-term debt $ 33,510  $ 33,897 
1To 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 at December 25, 2021, which effectively converted these notes to US-dollar-denominated notes. For further discussion on derivatives in cash flow hedging relationships, see "Note 16: Derivative Financial Instruments." Principal and unamortized discount/issuance costs for the Australian-dollar-denominated notes in the table above were calculated using foreign currency exchange rates as of December 25, 2021 and December 26, 2020.
Senior Notes
In 2021, we issued a total of $5.0 billion aggregate principal amount of senior notes. Net proceeds from the offerings are being used for general corporate purposes, which may include refinancing outstanding debt, funding for working capital, and capital expenditures. During 2021, we repaid $500 million of our 1.70% senior notes that matured in May 2021 and $2.0 billion of our 3.30% senior notes that matured in October 2021.
In 2020, we issued a total of $10.3 billion aggregate principal amount of senior notes and repaid $1.0 billion of our 1.85% senior notes that matured in May 2020 and $1.8 billion of our 2.45% senior notes that matured in July 2020. We also repaid $700 million in floating-rate senior notes that matured in May 2020.
Our floating-rate senior note pays interest quarterly and our fixed-rate senior 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 will effectively rank junior to all liabilities of our subsidiaries.
Revolving Credit Facility
In 2021, we entered into a $5.0 billion variable-rate revolving credit facility that, if drawn, is expected to be used for general corporate purposes. The revolving credit facility matures in March 2026 and had no borrowings outstanding as of December 25, 2021.
Convertible Debentures
In 2009, we issued the 2009 Debentures, which were convertible, subject to certain conditions, into shares of our common stock and paid a fixed rate of interest semiannually. In 2020, we paid $1.1 billion in cash to settle our remaining $372 million in principal, resulting in a loss of $109 million in interest and other, net and $750 million as a reduction in stockholders' equity related to the conversion feature.
Debt Maturities
Our aggregate debt maturities, excluding commercial paper and drafts payable, based on outstanding principal as of December 25, 2021, by year payable, are as follows:
(In Millions) 2022 2023 2024 2025 2026 2027 and thereafter Total
$ 4,586  $ 400  $ 1,850  $ 3,750  $ 1,000  $ 26,109  $ 37,695