Debt

The following table summarizes components of our debt:



	April 3, 2015					March 28, 2014
	Amount			Effective Interest Rate		Amount			Effective Interest Rate
	(Dollars in millions)
Senior Notes
2.75% due September 15, 2015	$	350		2.76	%	$	350		2.76	%
2.75% due June 15, 2017	600			2.79	%	600			2.79	%
4.20% due September 15, 2020	750			4.25	%	750			4.25	%
3.95% due June 15, 2022	400			4.05	%	400			4.05	%
Total principal amount	$	2,100				$	2,100
Less: unamortized discount	(4		)			(5		)
Total debt	$	2,096				$	2,095
Less: current portion	(350		)			—
Total long-term portion	$	1,746				$	2,095

The future maturities of debt by fiscal year are as follows:



	April 3, 2015
	(Dollars in millions)
2016	$	350
2017	—
2018	600
2019	—
2020	—
Thereafter	1,150
Total	$	2,100

Senior Notes

In fiscal 2013, we issued $1.0 billion of Senior Notes consisting of the 3.95% Senior Notes due in 2022 and the 2.75% Senior Notes due in 2017. We received proceeds of $996 million, net of an issuance discount. We also incurred issuance costs of $6 million in fiscal 2013. In fiscal 2011, we issued $1.1 billion of Senior Notes consisting of the 4.20% Senior Notes due in 2020 and 2.75% Senior Notes due in 2015. We collectively refer to such debt as our Senior Notes.

Our Senior Notes are senior unsecured obligations that rank equally in right of payment with all of our existing and future unsecured, unsubordinated obligations and are redeemable by us at any time, subject to a “make-whole” premium. Interest on our Senior Notes is payable semiannually. Both the discount and issuance costs are being amortized as incremental interest expense over the respective terms of the Senior Notes. Contractual interest expense totaled $73 million, $73 million, and $67 million in fiscal years 2015, 2014, and 2013, respectively.

Convertible Senior Notes

In fiscal 2014, the principal balance of our 1.00% Convertible Senior Notes issued in fiscal 2007 matured and was settled by a cash payment of $1.0 billion, along with the $5 million semiannual interest payment. In addition, we elected to pay the conversion value above par value in cash in the amount of $189 million. Concurrently with the payment of the conversion value, we received $189 million from the note hedge we entered into at the time of issuance of the 1.00% notes.

At the time of issuance of the 1.00% notes, we granted warrants to affiliates of certain initial purchasers of the notes whereby they had the option to purchase up to 52.7 million shares of our common stock at a price of $27.1330 per share. All the warrants expired unexercised on various dates during the second quarter of fiscal 2014 and there was no dilutive impact from the warrants on our earnings per share for fiscal 2014.

Interest on our 1.00% notes was payable semiannually. Contractual interest expense was $0 million, $2 million, and $10 million in fiscal 2015, 2014 and 2013, respectively. Amortization of the debt discount was $0 million, $3 million and $55 million in fiscal 2015, 2014 and 2013, respectively.

Revolving credit facility

In fiscal 2011, we entered into a $1.0 billion senior unsecured revolving credit facility, which was amended in fiscal 2013. The amendment extended the term of the credit facility to June 7, 2017 and revolving loans under the credit facility will bear interest, at our option, either at a rate equal to a) LIBOR plus a margin based on debt ratings, as defined in the credit facility agreement or b) the bank’s base rate plus a margin based on debt ratings, as defined in the credit facility agreement. Under the terms of this credit facility, we must comply with certain financial and non-financial covenants, including a covenant to maintain a specified ratio of debt to EBITDA (earnings before interest, taxes, depreciation and amortization). As of April 3, 2015 and March 28, 2014, we were in compliance with the required covenants, and no amounts were outstanding.