Quarterly report pursuant to Section 13 or 15(d)

Borrowings

v3.20.1
Borrowings
3 Months Ended
Mar. 28, 2020
Debt Disclosure [Abstract]  
Borrowings
NOTE 8 :
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
 
 
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

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:
 
 
 


 
 
2.40%-2.70%, due December 2035 - 2040
 
2.49
%
 
423

 
423

5.00%, due March 2049
 
2.11
%
 
138

 
138

5.00%, due June 2049
 
2.13
%
 
438

 
438

Junior Subordinated Convertible Debentures:
 
 
 
 
 

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


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."
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.