Debt

9 Months Ended

Jun. 28, 2020

Short-term Debt

Under our commercial paper program, we may issue unsecured commercial paper notes up to a maximum aggregate amount outstanding at any time of $3 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. 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 June 28, 2020, we had $296.5 million of borrowings outstanding under the program, net of unamortized discount, of which a majority matures in the second quarter of fiscal 2021.

During the second quarter of fiscal 2020, we entered into a new $500 million unsecured 364-day term-loan facility (“the 2020 term-loan facility”), which is available for general corporate purposes.

The 2020 term-loan facility is currently set to mature on March 19, 2021. Borrowings under the term-loan facility are subject to terms defined within the 2020 term-loan facility and will bear interest depending on if the loan is a Eurocurrency Rate Loan or a Base Loan. Eurocurrency Rate Loans will bear interest on the outstanding principal amount equal to the Eurocurrency Rate for such Interest Period plus the applicable margin. Each Base Rate Loan will bear interest on the outstanding principal amount equal to the Base Rate plus the applicable margin. The applicable margin is based on the Company's long-term credit ratings assigned by Moody's and Standard & Poor's rating agencies. The current applicable margin is 1.000% for Eurocurrency Rate Loans and 0.000% (nil) for Base Rate Loans. As of June 28, 2020, we had $500.0 million of borrowings outstanding under this term-loan facility program.

During the third quarter of fiscal 2020, we expanded our ¥1 billion unsecured credit facility to ¥5 billion, or $46.6 million. This facility is currently set to mature on December 31, 2020. Borrowings under the credit facility are subject to terms defined within the facility and will bear interest at a variable rate based on TIBOR plus an applicable margin of 0.300% or 0.400%, depending on the tranche borrowed. Additionally during the third quarter, we expanded our ¥2 billion unsecured credit facility to ¥10 billion, or $93.4 million. This facility is currently set to mature on March 26, 2021. Borrowings under the credit facility are subject to terms defined within the facility and will bear interest at a variable rate based on TIBOR plus 0.300%. As of June 28, 2020, we had ¥15 billion, or $140.0 million, of borrowings outstanding under these credit facilities.

Long-term Debt

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


	Jun 28, 2020						Sep 29, 2019						Stated Interest Rate	Effective Interest Rate⁽¹⁾
Issuance	Amount		Estimated Fair Value		Amount		Estimated Fair Value
November 2020 notes	$	500.0	$	503	$	500.0	$	501	2.200	%	2.228	%
February 2021 notes	500.0		504		500.0		500		2.100	%	2.293	%
February 2021 notes	250.0		252		250.0		250		2.100	%	1.600	%
May 2022 notes⁽⁵⁾	500.0		506		—		—		1.300	%	1.334	%
June 2022 notes	500.0		520		500.0		509		2.700	%	2.819	%
March 2023 notes	1,000.0		1,064		1,000.0		1,033		3.100	%	3.107	%
October 2023 notes⁽²⁾	750.0		819		750.0		798		3.850	%	2.859	%
March 2024 notes⁽³⁾	793.0		781		788.3		795		0.372	%	0.462	%
August 2025 notes	1,250.0		1,409		1,250.0		1,351		3.800	%	3.721	%
June 2026 notes	500.0		533		500.0		502		2.450	%	2.511	%
March 2027 notes⁽⁴⁾	500.0		525		—		—		2.000	%	2.058	%
March 2028 notes	600.0		677		600.0		644		3.500	%	3.529	%
November 2028 notes	750.0		879		750.0		837		4.000	%	3.958	%
August 2029 notes	1,000.0		1,136		1,000.0		1,080		3.550	%	3.840	%
March 2030 notes⁽⁴⁾	750.0		778		—		—		2.250	%	3.084	%
November 2030 notes⁽⁵⁾	1,250.0		1,309		—		—		2.550	%	2.582	%
June 2045 notes	350.0		405		350.0		390		4.300	%	4.348	%
December 2047 notes	500.0		543		500.0		518		3.750	%	3.765	%
November 2048 notes	1,000.0		1,178		1,000.0		1,160		4.500	%	4.504	%
August 2049 notes	1,000.0		1,219		1,000.0		1,165		4.450	%	4.447	%
March 2050 notes⁽⁴⁾	500.0		511		—		—		3.350	%	3.362	%
November 2050 notes⁽⁵⁾	1,250.0		1,321		—		—		3.500	%	3.528	%
Total	15,993.0		17,372		11,238.3		12,033
Aggregate debt issuance costs and unamortized premium/(discount), net	(135.9)				(83.1)
Hedge accounting fair value adjustment⁽²⁾	38.1				11.8
Total	$	15,895.2			$	11,167.0

⁽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 March 2020.

⁽⁵⁾Issued in May 2020.

The following table summarizes our long-term debt maturities as of June 28, 2020 by fiscal year (in millions):


Fiscal Year	Total

2020	$	—
2021	1,250.0
2022	1,000.0
2023	1,000.0
2024	1,543.0
Thereafter	11,200.0
Total	$	15,993.0