| Borrowings |
As of March 28, 2020, our short-term debt was $3.5 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
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Mar 28,
2020 |
|
Dec 28,
2019 |
(In Millions) |
|
Effective Interest Rate |
|
Amount |
|
Amount |
Floating-rate senior notes: |
|
|
|
|
|
|
Three-month LIBOR plus 0.08%, due May 2020 |
|
1.93 |
% |
|
$ |
700 |
|
|
$ |
700 |
|
Three-month LIBOR plus 0.35%, due May 2022 |
|
2.19 |
% |
|
800 |
|
|
800 |
|
Fixed-rate senior notes: |
|
|
|
|
|
|
1.85%, due May 2020 |
|
1.88 |
% |
|
1,000 |
|
|
1,000 |
|
2.45%, due July 2020 |
|
2.47 |
% |
|
1,750 |
|
|
1,750 |
|
1.70%, due May 2021 |
|
1.77 |
% |
|
500 |
|
|
500 |
|
3.30%, due October 2021 |
|
2.96 |
% |
|
2,000 |
|
|
2,000 |
|
2.35%, due May 2022 |
|
1.95 |
% |
|
750 |
|
|
750 |
|
3.10%, due July 2022 |
|
2.68 |
% |
|
1,000 |
|
|
1,000 |
|
4.00%, due December 2022¹ |
|
3.61 |
% |
|
325 |
|
|
382 |
|
2.70%, due December 2022 |
|
2.27 |
% |
|
1,500 |
|
|
1,500 |
|
4.10%, due November 2023 |
|
3.20 |
% |
|
400 |
|
|
400 |
|
2.88%, due May 2024 |
|
2.30 |
% |
|
1,250 |
|
|
1,250 |
|
2.70%, due June 2024 |
|
2.12 |
% |
|
600 |
|
|
600 |
|
3.40%, due March 2025 |
|
3.46 |
% |
|
1,500 |
|
|
— |
|
3.70%, due July 2025 |
|
3.81 |
% |
|
2,250 |
|
|
2,250 |
|
2.60%, due May 2026 |
|
2.28 |
% |
|
1,000 |
|
|
1,000 |
|
3.75%, due March 2027 |
|
3.80 |
% |
|
1,000 |
|
|
— |
|
3.15%, due May 2027 |
|
2.84 |
% |
|
1,000 |
|
|
1,000 |
|
2.45%, due November 2029 |
|
2.45 |
% |
|
2,000 |
|
|
1,250 |
|
3.90%, due March 2030 |
|
3.94 |
% |
|
1,500 |
|
|
— |
|
4.00%, due December 2032 |
|
2.82 |
% |
|
750 |
|
|
750 |
|
4.60%, due March 2040 |
|
4.63 |
% |
|
750 |
|
|
— |
|
4.80%, due October 2041 |
|
3.75 |
% |
|
802 |
|
|
802 |
|
4.25%, due December 2042 |
|
3.00 |
% |
|
567 |
|
|
567 |
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4.90%, due July 2045 |
|
3.78 |
% |
|
772 |
|
|
772 |
|
4.10%, due May 2046 |
|
3.04 |
% |
|
1,250 |
|
|
1,250 |
|
4.10%, due May 2047 |
|
3.00 |
% |
|
1,000 |
|
|
1,000 |
|
4.10%, due August 2047 |
|
2.58 |
% |
|
640 |
|
|
640 |
|
3.73%, due December 2047 |
|
3.30 |
% |
|
1,967 |
|
|
1,967 |
|
3.25%, due November 2049 |
|
3.22 |
% |
|
2,000 |
|
|
1,500 |
|
4.75%, due March 2050 |
|
4.77 |
% |
|
2,250 |
|
|
— |
|
3.10%, due February 2060 |
|
3.12 |
% |
|
1,000 |
|
|
— |
|
4.95%, due March 2060 |
|
5.02 |
% |
|
1,000 |
|
|
— |
|
Oregon and Arizona bonds: |
|
|
|
|
|
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2.40%-2.70%, due December 2035 - 2040 |
|
2.49 |
% |
|
423 |
|
|
423 |
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5.00%, due March 2049 |
|
2.11 |
% |
|
138 |
|
|
138 |
|
5.00%, due June 2049 |
|
2.13 |
% |
|
438 |
|
|
438 |
|
Junior Subordinated Convertible Debentures: |
|
|
|
|
|
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3.25%, due August 2039 |
|
— |
|
|
— |
|
|
372 |
|
Total Senior Notes and Other Borrowings |
|
|
|
38,572 |
|
|
28,751 |
|
Unamortized Premium/Discount and Issuance Costs |
|
|
|
(379 |
) |
|
(529 |
) |
Hedge Accounting Fair Value Adjustments |
|
|
|
1,726 |
|
|
781 |
|
Long-term debt |
|
|
|
39,919 |
|
|
29,003 |
|
Current portion of long-term debt |
|
|
|
(3,464 |
) |
|
(3,695 |
) |
Total long-term debt |
|
|
|
$ |
36,455 |
|
|
$ |
25,308 |
|
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1 |
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 11: Derivative Financial Instruments."
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In November 2019, we issued a notice of redemption for the remaining $372 million of 2009 Debentures with a redemption date of January 9, 2020. During the fourth quarter of 2019, the closing stock price conversion right condition of the 2009 Debentures continued to be met and therefore the debentures were convertible at the option of the holders until January 6, 2020. All 2009 Debentures were either converted prior to January 6, 2020 or redeemed on the redemption date.
In the first three 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.
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