Debt

12 Months Ended

Sep. 29, 2019

Revolving Credit Facility and Commercial Paper Program

Our $2.0 billion unsecured 5-year revolving credit facility (the “2018 credit facility”) and a $1.0 billion unsecured 364-Day credit facility (the “364-day credit facility”) are available for working capital, capital expenditures and other corporate purposes, including acquisitions and share repurchases.

The 2018 credit facility, of which $150 million may be used for issuances of letters of credit, is currently set to mature on October 25, 2022. We have the option, subject to negotiation and agreement with the related banks, to increase the maximum commitment amount by an additional $500 million. Borrowings under the credit facility will bear interest at a variable rate based on LIBOR, and, for U.S. dollar-denominated loans under certain circumstances, a Base Rate (as defined in the credit facility), in each case plus an applicable margin. The applicable margin is based on the better of (i) the Company's long-term credit ratings assigned by Moody's and Standard & Poor's rating agencies and (ii) the Company's fixed charge coverage ratio, pursuant to a pricing grid set forth in the five-year credit agreement. The current applicable margin is 0.910% for Eurocurrency Rate Loans and 0.000% (nil) for Base Rate Loans.

The 364-day credit facility, of which no amount may be used for issuances of letters of credit, has been extended to mature on October 21, 2020. We have the option, subject to negotiation and agreement with the related banks, to increase the maximum commitment amount by an additional $500 million. Borrowings under the credit facility bear interest at a variable rate based on LIBOR, and, for U.S. dollar-denominated loans under certain circumstances, a Base Rate (as defined in the credit facility), in each case plus an applicable margin. The applicable margin was 0.920% for Eurocurrency Rate Loans and 0.000% (nil) for Base Rate Loans.

Both credit facilities contain provisions requiring us to maintain compliance with certain covenants, including a minimum fixed charge coverage ratio, which measures our ability to cover financing expenses. As of September 29, 2019, we were in compliance with all applicable covenants. No amounts were outstanding under our credit facility as of September 29, 2019.

Under our commercial paper program, we may issue unsecured commercial paper notes up to a maximum aggregate amount outstanding at any time of $3.0 billion, with individual maturities that may vary but not exceed 397 days from the date of issue. Amounts outstanding under the commercial paper program are required to be backstopped by available commitments under our credit facility discussed above. The proceeds from borrowings under our commercial paper program may be used for working capital needs, capital expenditures and other corporate purposes, including, but not limited to, business expansion, payment of cash dividends on our common stock and share repurchases. As of September 29, 2019, we had no borrowings outstanding under the program.

Long-term Debt

Components of long-term debt including the associated interest rates and related fair values by calendar maturity (in millions, except interest rates):



	Sep 29, 2019					Sep 30, 2018					Stated Interest Rate		Effective Interest Rate ⁽¹⁾
Issuance	Face Value			Estimated Fair Value		Face Value			Estimated Fair Value		Stated Interest Rate		Effective Interest Rate ⁽¹⁾
December 2018 notes	$	—		$	—	$	350.0		$	350	2.000	%	2.012	%
November 2020 notes	500.0			501		500.0			490		2.200	%	2.228	%
February 2021 notes	500.0			500		500.0			489		2.100	%	2.293	%
February 2021 notes	250.0			250		250.0			244		2.100	%	1.600	%
June 2022 notes	500.0			509		500.0			486		2.700	%	2.819	%
February 2023 notes	1,000.0			1,033		1,000.0			986		3.100	%	3.107	%
October 2023 notes ⁽²⁾	750.0			798		750.0			759		3.850	%	2.859	%
March 2024 notes ⁽³⁾	788.3			795		748.4			743		0.372	%	0.462	%
August 2025 notes	1,250.0			1,351		1,250.0			1,249		3.800	%	3.721	%
June 2026 notes	500.0			502		500.0			451		2.450	%	2.511	%
February 2028 notes	600.0			644		600.0			576		3.500	%	3.529	%
November 2028 notes	750.0			837		750.0			754		4.000	%	3.958	%
May 2029 notes ⁽⁴⁾	1,000.0			1,080		—			—		3.550	%	3.871	%
June 2045 notes	350.0			390		350.0			330		4.300	%	4.348	%
December 2047 notes	500.0			518		500.0			438		3.750	%	3.765	%
November 2048 notes	1,000.0			1,160		1,000.0			977		4.500	%	4.504	%
May 2049 notes ⁽⁴⁾	1,000.0			1,165		—			—		4.450	%	4.433	%
Total	11,238.3			12,033		9,548.4			9,322
Aggregate debt issuance costs and unamortized premium/(discount), net	(83.1		)			(69.3		)
Hedge accounting fair value adjustment ⁽²⁾	11.8					(39.0		)
Total	$	11,167.0				$	9,440.1


⁽¹⁾	Includes the effects of the amortization of any premium or discount and any gain or loss upon settlement of related treasury locks or forward-starting interest rate swaps utilized to hedge the interest rate risk prior to the debt issuance.


⁽²⁾	Amount includes the change in fair value due to changes in benchmark interest rates related to our October 2023 notes. Refer to Note 3, Derivative Financial Instruments, for additional information on our interest rate swap designated as a fair value hedge.


⁽³⁾	Japanese yen-denominated long-term debt.


⁽⁴⁾	Issued in May 2019.

The indentures under which the above notes were issued also require us to maintain compliance with certain covenants, including limits on future liens and sale and leaseback transactions on certain material properties. As of September 29, 2019, we were in compliance with each of these covenants.

The following table summarizes our long-term debt maturities as of September 29, 2019 by fiscal year (in millions):



Fiscal Year	Total
2020	$	—
2021	1,250.0
2022	500.0
2023	1,000.0
2024	1,538.3
Thereafter	6,950.0
Total	$	11,238.3