Quarterly report pursuant to Section 13 or 15(d)

Debt and Borrowing Arrangements

v3.2.0.727
Debt and Borrowing Arrangements
 6 Months Ended
Jul. 03, 2015
Debt and borrowing arrangements  
Debt and Borrowing Arrangements
DEBT AND BORROWING ARRANGEMENTS
During the six months ended July 3, 2015, the Company issued €8,500 million of long-term debt. The carrying value of this debt as of July 3, 2015 was $9,421 million. The general terms of the notes issued are as follows:
•
€2,000 million total principal amount of notes due March 9, 2017, at a variable interest rate equal to the three-month Euro Interbank Offered Rate ("EURIBOR") plus 0.15 percent;
•
€2,000 million total principal amount of notes due September 9, 2019, at a variable interest rate equal to the three-month EURIBOR plus 0.23 percent;
•
€1,500 million total principal amount of notes due March 9, 2023, at a fixed interest rate of 0.75 percent;
•
€1,500 million total principal amount of notes due March 9, 2027, at a fixed interest rate of 1.125 percent; and
•
€1,500 million total principal amount of notes due March 9, 2035, at a fixed interest rate of 1.625 percent.
During the six months ended July 3, 2015, the Company retired $1,500 million of long-term debt upon maturity. The Company also extinguished $2,039 million of long-term debt prior to maturity, incurring associated charges of $320 million recorded in the line item interest expense in our condensed consolidated statement of income. These charges included the difference between the reacquisition price and the net carrying amount of the debt extinguished, including the impact of the related fair value hedging relationship. The general terms of the notes that were extinguished are as follows:
•
$1,148 million total principal amount of notes due November 15, 2017, at a fixed interest rate of 5.35 percent; and
•
$891 million total principal amount of notes due March 15, 2019, at a fixed interest rate of 4.875 percent.