Debt

3 Months Ended

Dec. 02, 2021

Debt Disclosure [Abstract]

Debt

Debt

	December 2, 2021										September 2, 2021
					Net Carrying Amount						Net Carrying Amount
As of	Stated Rate		Effective Rate		Current		Long-Term		Total		Current		Long-Term		Total
2024 Term Loan A	0.965	%	1.00	%	$	—	$	1,186	$	1,186	$	—	$	1,186	$	1,186
2026 Notes	4.975	%	5.07	%	—		498		498		—		498		498
2027 Notes(1)	4.185	%	4.27	%	—		883		883		—		901		901
2029 Notes	5.327	%	5.40	%	—		697		697		—		696		696
2030 Notes	4.663	%	4.73	%	—		846		846		—		846		846
2032 Green Bonds	2.703	%	2.77	%	—		994		994		—		—		—
2041 Notes	3.366	%	3.41	%	—		496		496		—		—		—
2051 Notes	3.477	%	3.52	%	—		496		496		—		—		—
Finance lease obligations	N/A		2.69	%	118		808		926		155		649		804
2023 Notes	N/A		N/A		—		—		—		—		1,247		1,247
2024 Notes	N/A		N/A		—		—		—		—		598		598
					$	118	$	6,904	$	7,022	$	155	$	6,621	$	6,776

(1)In 2021, we entered into fixed-to-floating interest rate swaps on the 2027 Notes with an aggregate $900 million notional amount equal to the principal amount of the 2027 Notes. The resulting variable interest paid is at a rate equal to SOFR plus approximately 3.33%. The fixed-to-floating interest rate swaps are accounted for as fair value hedges, as a result, the carrying value of our 2027 Notes reflects adjustments in fair value.

Debt Activity

The table below presents the effects of issuances and prepayments of debt in the first quarter of 2022:

	Increase (Decrease) in Principal		Increase (Decrease) in Carrying Value		Increase (Decrease) in Cash		Gain (Loss)
Issuances
2032 Green Bonds	$	1,000	$	994	$	994	$	—
2041 Notes	500		496		496		—
2051 Notes	500		496		496		—
Prepayments
2023 Notes	(1,250)		(1,247)		(1,281)		(34)
2024 Notes	(600)		(598)		(647)		(49)
	$	150	$	141	$	58	$	(83)

Senior Unsecured Notes

On November 1, 2021, we issued $2.00 billion aggregate principal amount of unsecured 2032 Green Bonds, 2041 Notes, and 2051 Notes in a public offering. Issuance costs for these notes were $14 million.

We may redeem our 2026 Notes, 2027 Notes, 2029 Notes, 2030 Notes, 2032 Green Bonds, 2041 Notes, and 2051 Notes (the “Senior Unsecured Notes”), in whole or in part, at our option prior to their respective maturity date at a redemption price equal to the greater of (i) 100% of the principal amount of the notes to be redeemed and (ii) the present value of the remaining scheduled payments of principal, in each case plus accrued interest. We may also redeem any series of our Senior Unsecured Notes, in whole or in part, at a price equal to par between two and six months prior to maturity in accordance with the respective terms of such series.

Each series of Senior Unsecured Notes contains covenants that, among other things, limit, in certain circumstances, our ability and/or the ability of our restricted subsidiaries (which are generally domestic subsidiaries in which we own at least 80% of the voting stock and which own principal property, as defined in the indenture governing such notes) to (1) create or incur certain liens; (2) enter into certain sale and lease-back transactions; and (3) consolidate with or merge with or into, or convey, transfer, or lease all or substantially all of our properties and assets, to another entity. These covenants are subject to a number of limitations and exceptions. Additionally, if a change of control triggering event occurs, as defined in the indentures governing our Senior Unsecured Notes, we will be required to offer to purchase such notes at 101% of the outstanding aggregate principal amount plus accrued interest up to the purchase date.

Revolving Credit Facility

As of December 2, 2021, $2.50 billion was available to us under the Revolving Credit Facility and no amounts were outstanding. Any amounts outstanding under the Revolving Credit Facility would mature in May 2026 and amounts borrowed may be prepaid any time without penalty. Any amounts drawn under the Revolving Credit Facility would generally bear interest at a rate equal to LIBOR plus 1.00% to 1.75%, depending on our corporate credit ratings.

Maturities of Notes Payable

As of December 2, 2021, maturities of notes payable were as follows:

Remainder of 2022	$	—
2023	—
2024	—
2025	1,188
2026	500
2027 and thereafter	4,450
Unamortized discounts	(29)
Hedge accounting fair value adjustment	(13)
	$	6,096