Borrowings


(a)	Short-Term Debt

The following table summarizes the Company’s short-term debt (in millions, except percentages):



	July 29, 2017				July 30, 2016
	Amount		Effective Rate		Amount		Effective Rate
Current portion of long-term debt	$	4,747	1.66	%	$	4,159	0.97	%
Commercial paper	3,245		1.16	%	—		—	%
Other notes and borrowings	—		—	%	1		2.08	%
Total short-term debt	$	7,992			$	4,160

Effective March 31, 2017, the Company increased its borrowing capacity under its existing commercial paper program from $3.0 billion to $10.0 billion. The Company uses the proceeds from the issuance of commercial paper notes for general corporate purposes.

The effective rates for the short- and long-term debt include the interest on the notes, the accretion of the discount, the issuance costs, and, if applicable, adjustments related to hedging.


(b)	Long-Term Debt

The following table summarizes the Company’s long-term debt (in millions, except percentages):



			July 29, 2017				July 30, 2016
	Maturity Date		Amount			Effective Rate	Amount			Effective Rate
Senior notes:
Floating-rate notes:
Three-month LIBOR plus 0.28%	March 3, 2017	(1)	$	—		—	$	1,000		1.03%
Three-month LIBOR plus 0.60%	February 21, 2018		1,000			1.84%	1,000			1.32%
Three-month LIBOR plus 0.31%	June 15, 2018		900			1.62%	900			1.03%
Three-month LIBOR plus 0.50%	March 1, 2019		500			1.76%	500			1.23%
Three-month LIBOR plus 0.34%	September 20, 2019	(2)	500			1.66%	—			—
Fixed-rate notes:
1.10%	March 3, 2017	(1)	—			—	2,400			0.87%
3.15%	March 14, 2017	(1)	—			—	750			1.22%
1.40%	February 28, 2018		1,250			1.47%	1,250			1.47%
1.65%	June 15, 2018		1,600			1.72%	1,600			1.72%
4.95%	February 15, 2019		2,000			4.96%	2,000			4.76%
1.60%	February 28, 2019		1,000			1.67%	1,000			1.67%
2.125%	March 1, 2019		1,750			1.84%	1,750			1.08%
1.40%	September 20, 2019	(2)	1,500			1.48%	—			—
4.45%	January 15, 2020		2,500			3.84%	2,500			3.25%
2.45%	June 15, 2020		1,500			2.54%	1,500			2.54%
2.20%	February 28, 2021		2,500			2.30%	2,500			2.30%
2.90%	March 4, 2021		500			2.00%	500			1.24%
1.85%	September 20, 2021	(2)	2,000			1.90%	—			—
3.00%	June 15, 2022		500			2.26%	500			1.51%
2.60%	February 28, 2023		500			2.68%	500			2.68%
2.20%	September 20, 2023	(2)	750			2.27%	—			—
3.625%	March 4, 2024		1,000			2.12%	1,000			1.36%
3.50%	June 15, 2025		500			2.43%	500			1.67%
2.95%	February 28, 2026		750			3.01%	750			3.01%
2.50%	September 20, 2026	(2)	1,500			2.55%	—			—
5.90%	February 15, 2039		2,000			6.11%	2,000			6.11%
5.50%	January 15, 2040		2,000			5.67%	2,000			5.67%
Total			30,500				28,400
Unaccreted discount/issuance costs			(136		)		(137		)
Hedge accounting fair value adjustments			108				379
Total			$	30,472			$	28,642

Reported as:
Current portion of long-term debt			$	4,747			$	4,159
Long-term debt			25,725				24,483
Total			$	30,472			$	28,642

⁽¹⁾ In March 2017, the Company repaid senior notes with an aggregate principal amount of $4.15 billion upon maturity.

⁽²⁾ In September 2016, the Company issued senior notes for an aggregate principal amount of $6.25 billion.

The Company entered into interest rate swaps in prior periods with an aggregate notional amount of $6.75 billion designated as fair value hedges of certain of its fixed-rate senior notes. These swaps convert the fixed interest rates of the fixed-rate notes to floating interest rates based on the London InterBank Offered Rate (LIBOR). The gains and losses related to changes in the fair value of the interest rate swaps substantially offset changes in the fair value of the hedged portion of the underlying debt that are attributable to the changes in market interest rates. For additional information, see Note 11.

Interest is payable semiannually on each class of the senior fixed-rate notes and payable quarterly on the floating-rate notes. Each of the senior fixed-rate notes is redeemable by the Company at any time, subject to a make-whole premium. The senior notes rank at par with the commercial paper notes that have been issued in the future pursuant to the Company’s short-term debt financing program, as discussed above under “(a) Short-Term Debt.” As of July 29, 2017, the Company was in compliance with all debt covenants.

As of July 29, 2017, future principal payments for long-term debt, including the current portion, are summarized as follows (in millions):



Fiscal Year	Amount
2018	$	4,750
2019	5,250
2020	6,000
2021	3,000
2022	2,500
Thereafter	9,000
Total	$	30,500


(c)	Credit Facilities

On May 15, 2015, the Company entered into a credit agreement with certain institutional lenders that provides for a $3.0 billion unsecured revolving credit facility that is scheduled to expire on May 15, 2020. Any advances under the credit agreement will accrue interest at rates that are equal to, based on certain conditions, either (i) the highest of (a) the Federal Funds rate plus 0.50%, (b) Bank of America’s “prime rate” as announced from time to time, or (c) LIBOR, or a comparable or successor rate that is approved by the Administrative Agent (“Eurocurrency Rate”), for an interest period of one-month plus 1.00%, or (ii) the Eurocurrency Rate, plus a margin that is based on the Company’s senior debt credit ratings as published by Standard & Poor’s Financial Services, LLC and Moody’s Investors Service, Inc., provided that in no event will the Eurocurrency Rate be less than zero. The Company may also, upon agreement of either the then-existing lenders or additional lenders not currently parties to the agreement, increase the commitments under the credit facility by up to an additional $2.0 billion and/or extend the expiration date of the credit facility up to May 15, 2022.

In addition, on March 30, 2017, the Company entered into a 364-Day credit agreement with certain institutional lenders that provides for a $2.0 billion unsecured revolving credit facility that is scheduled to expire on March 29, 2018. The credit agreement also provides the Company with the option to, for a fee, convert any borrowings outstanding thereunder on March 29, 2018 to a term loan maturing no later than March 29, 2019. The interest rate applicable to outstanding balances under the credit agreement will be based on either (i) the higher of (a) the rates on overnight Federal Funds transactions with members of the Federal Reserve System (i.e. Federal Funds rate) plus 0.50%, (b) Bank of America's "prime rate" as announced from time to time or (c) LIBOR for an interest period of one month plus 1.00%, or (ii) LIBOR plus a margin that is based on the Company's senior debt credit ratings as published by S&P Global Rating, a business unit of Standard & Poor's Financial Services LLC, and Moody's Investors Service, Inc.

These credit agreements require that the Company comply with certain covenants, including that the Company maintains an interest coverage ratio as defined in these agreements. As of July 29, 2017, the Company was in compliance with the required interest coverage ratio and the other covenants, and the Company had not borrowed any funds under the credit facility.