Debt

12 Months Ended

Sep. 27, 2020

Revolving Credit Facility

Our $2.0 billion unsecured 5-year revolving credit facility (the “2018 credit facility”) and our $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 1.100% 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 September 22, 2021. 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 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 364-day credit agreement. The applicable margin is 1.150% for Eurocurrency Rate Loans and 0.150% 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 27, 2020, we were in compliance with all applicable covenants. No amounts were outstanding under our 2018 credit facility or our 364-day credit facility as of September 27, 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 $3.0 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 27, 2020, we had $296.5 million borrowings outstanding under the program, net of unamortized discount, of which a majority matures in the second quarter of fiscal 2021.

During the third quarter of fiscal 2020, we expanded our ¥1 billion unsecured credit facility to ¥5 billion, or $47.4 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 0.400%. Additionally during the third quarter, we expanded our ¥2 billion unsecured credit facility to ¥10 billion, or $94.9 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 September 27, 2020, we had ¥15 billion, or $142.3 million, of borrowings outstanding under these Japanese Yen-denominated credit facilities.

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 27, 2020			Sep 29, 2019			Stated Interest Rate		Effective Interest Rate (1)
Issuance	Face Value		Estimated Fair Value	Face Value		Estimated Fair Value
November 2020 notes	$	500.0	501	$	500.0	501	2.200	%	2.228	%
February 2021 notes	500.0		502	500.0		500	2.100	%	2.293	%
February 2021 notes	250.0		251	250.0		250	2.100	%	1.600	%
May 2022 notes(5)	500.0		506	—		—	1.300	%	1.334	%
June 2022 notes	500.0		518	500.0		509	2.700	%	2.819	%
March 2023 notes	1,000.0		1,059	1,000.0		1,033	3.100	%	3.107	%
October 2023 notes(2)	750.0		818	750.0		798	3.850	%	2.859	%
March 2024 notes(3)	806.4		794	788.3		795	0.372	%	0.462	%
August 2025 notes	1,250.0		1,415	1,250.0		1,351	3.800	%	3.721	%
June 2026 notes	500.0		543	500.0		502	2.450	%	2.511	%
March 2027 notes(4)	500.0		529	—		—	2.000	%	2.058	%
March 2028 notes	600.0		680	600.0		644	3.500	%	3.529	%
November 2028 notes	750.0		886	750.0		837	4.000	%	3.958	%
August 2029 notes	1,000.0		1,147	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		1,326	—		—	2.550	%	2.582	%
June 2045 notes	350.0		412	350.0		390	4.300	%	4.348	%
December 2047 notes	500.0		547	500.0		518	3.750	%	3.765	%
November 2048 notes	1,000.0		1,223	1,000.0		1,160	4.500	%	4.504	%
August 2049 notes	1,000.0		1,216	1,000.0		1,165	4.450	%	4.447	%
March 2050 notes(4)	500.0		517	—		—	3.350	%	3.362	%
November 2050 notes(5)	1,250.0		1,332	—		—	3.500	%	3.528	%
Total	16,006.4		17,500	11,238.3		12,033
Aggregate debt issuance costs and unamortized premium/(discount), net	(132.5)			(83.1)
Hedge accounting fair value adjustment(2)	35.6			11.8
Total	$	15,909.5		$	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 September 27, 2020 by fiscal year (in millions):


Fiscal Year	Total
2021	$	1,250.0
2022	1,000.0
2023	1,000.0
2024	1,556.4
2025	1,250.0
Thereafter	9,950.0
Total	$	16,006.4