Debt

3 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

Debt

Debt

Revolving Credit Facility

Our $3.0 billion unsecured five-year revolving credit facility (the “2021 credit facility”), of which $150.0 million may be used for issuances of letters of credit, is currently set to mature on September 16, 2026. The 2021 credit facility is available for working capital, capital expenditures, and other corporate purposes, including acquisitions and share repurchases. We have the option, subject to negotiation and agreement with the related banks, to increase the maximum commitment amount by an additional $1.0 billion.

Borrowings under the 2021 credit facility, which was most recently amended in April 2023, will bear interest at a variable rate based on Term SOFR, and, for U.S. dollar-denominated loans under certain circumstances, a Base Rate (as defined in the 2021 credit facility), in each case plus an applicable margin. The applicable margin is based on the Company’s long-term credit ratings assigned by the Moody’s and Standard & Poor’s rating agencies. The “Base Rate” is the highest of (i) the Federal Funds Rate (as defined in the 2021 credit facility) plus 0.500%, (ii) Bank of America’s prime rate, and (iii) Term SOFR plus 1.000%. Term SOFR means the forward-looking SOFR term rate administrated by the Chicago Mercantile Exchange plus a SOFR Adjustment of 0.100%.

The 2021 credit facility contains 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 March 31, 2024, we were in compliance with all applicable covenants. No amounts were outstanding under our 2021 credit facility as of March 31, 2024 or October 1, 2023.

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 2021 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. No amounts were outstanding under our commercial paper program as of March 31, 2024 and October 1, 2023.

Additionally, we hold the following Japanese yen-denominated credit facilities that are available for working capital needs and capital expenditures within our Japanese market:

•A ¥5.0 billion, or $33.0 million, credit facility is currently set to mature on December 30, 2024. Borrowings under this credit facility are subject to terms defined within the facility and will bear interest at a variable rate based on Tokyo Interbank Offered Rate (“TIBOR”) plus an applicable margin of 0.400%.

•A ¥10.0 billion, or $66.1 million, credit facility is currently set to mature on March 27, 2025. Borrowings under this 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%.

As of March 31, 2024, we had ¥5.0 billion, or $33.0 million, of borrowings outstanding under these credit facilities. As of October 1, 2023, we had ¥5.0 billion, or $33.5 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):

	Mar 31, 2024				Oct 1, 2023				Stated Interest Rate		Effective Interest Rate(1)
Issuance	Amount		Estimated Fair Value		Amount		Estimated Fair Value
October 2023 notes(2)	$	—	$	—	$	750.0	$	749.9	3.850	%	2.859	%
February 2024 notes(3)	—		—		500.0		504.2		5.848	%	6.079	%
March 2024 notes(4)	—		—		569.3		569.3		0.372	%	0.462	%
August 2025 notes	1,250.0		1,225.4		1,250.0		1,210.5		3.800	%	3.721	%
February 2026 notes	1,000.0		994.3		1,000.0		985.5		4.750	%	4.788	%
June 2026 notes	500.0		472.5		500.0		463.5		2.450	%	2.511	%
February 2027 notes	1,000.0		998.0		—		—		4.850	%	4.958	%
March 2027 notes	500.0		459.6		500.0		446.1		2.000	%	2.058	%
March 2028 notes	600.0		570.4		600.0		554.7		3.500	%	3.529	%
November 2028 notes	750.0		726.8		750.0		704.5		4.000	%	3.958	%
August 2029 notes(2)	1,000.0		942.6		1,000.0		904.1		3.550	%	3.840	%
March 2030 notes	750.0		646.4		750.0		615.1		2.250	%	3.084	%
November 2030 notes	1,250.0		1,083.6		1,250.0		1,027.1		2.550	%	2.582	%
February 2031 notes	500.0		497.4		—		—		4.900	%	5.046	%
February 2032 notes	1,000.0		874.8		1,000.0		828.0		3.000	%	3.155	%
February 2033 notes	500.0		495.0		500.0		470.7		4.800	%	3.798	%
February 2034 notes	500.0		496.5		—		—		5.000	%	5.127	%
June 2045 notes	350.0		303.7		350.0		275.3		4.300	%	4.348	%
December 2047 notes	500.0		393.7		500.0		354.0		3.750	%	3.765	%
November 2048 notes	1,000.0		878.0		1,000.0		799.0		4.500	%	4.504	%
August 2049 notes	1,000.0		869.5		1,000.0		792.7		4.450	%	4.447	%
March 2050 notes	500.0		355.8		500.0		328.6		3.350	%	3.362	%
November 2050 notes	1,250.0		925.9		1,250.0		843.4		3.500	%	3.528	%
Total	15,700.0		14,209.9		15,519.3		13,426.2
Aggregate debt issuance costs and unamortized premium/(discount), net	(121.1)				(113.1)
Hedge accounting fair value adjustment(2)	(31.4)				(40.0)
Total	$	15,547.5			$	15,366.2

(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 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 hedging our October 2023 notes and $350.0 million of our August 2029 notes. Refer to Note 3, Derivative Financial Instruments, for additional information on our interest rate swap agreements designated as fair value hedges.

(3)Floating rate notes that bear interest at a rate equal to Compounded SOFR (as defined in the February 2024 notes) plus 0.420%, resulting in a stated interest rate of 5.848% at maturity on February 14, 2024.

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

The following table summarizes our long-term debt maturities as of March 31, 2024 by fiscal year (in millions):

Fiscal Year	Total
2024	$	—
2025	1,250.0
2026	1,500.0
2027	1,500.0
2028	600.0
Thereafter	10,850.0
Total	$	15,700.0