Quarterly report pursuant to Section 13 or 15(d)

Debt and Borrowing Arrangements

v3.21.2
Debt and Borrowing Arrangements
 6 Months Ended
Jul. 02, 2021
Debt and Borrowing Arrangements Disclosure [Abstract]  
Debt Disclosure [Text Block] DEBT AND BORROWING ARRANGEMENTS
During the six months ended July 2, 2021, the Company issued U.S. dollar- and euro-denominated debt of $5,950 million and €3,150 million, respectively. The carrying value of this debt as of July 2, 2021 was $9,563 million. The general terms of the notes issued are as follows (in millions, except fixed interest rate data):
Total Principal Amount Fixed Interest Rate
U.S. dollar notes due March 5, 2028 $ 750  1.500  %
Euro notes due March 9, 2029 € 700  0.125 
Euro notes due May 6, 2030 € 650  0.400 
U.S. dollar notes due March 5, 2031 $ 750  2.000 
U.S. dollar notes due January 5, 2032 $ 2,000  2.250 
Euro notes due March 9, 2033 € 650  0.500 
Euro notes due May 6, 2036 € 500  0.950 
Euro notes due March 9, 2041 € 650  1.000 
U.S. dollar notes due May 5, 2041 $ 750  2.875 
U.S. dollar notes due March 5, 2051 $ 1,700  3.000 
During the six months ended July 2, 2021, the Company retired upon maturity €371 million total principal amount of notes due March 8, 2021, at a variable interest rate equal to the three-month Euro Interbank Offered Rate (“EURIBOR”) plus 0.200 percent.
During the six months ended July 2, 2021, the Company extinguished prior to maturity U.S. dollar- and euro-denominated debt of $6,500 million and €2,430 million, respectively, resulting in charges of $559 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 value of the debt extinguished, including the impact of the related fair value hedging relationships. We also incurred charges of $91 million as a result of the reclassification of related cash flow hedging balances from AOCI into income. The general terms of the notes that were extinguished are as follows (in millions, except fixed interest rate data):
Total Principal Amount Fixed Interest Rate
Euro notes due March 9, 2023 € 1,500  0.750  %
U.S. dollar notes due April 1, 2023 $ 750  2.500 
U.S. dollar notes due November 1, 2023 $ 1,500  3.200 
U.S. dollar notes due March 25, 2025 $ 1,000  2.950 
U.S. dollar notes due October 27, 2025 $ 1,750  2.875 
U.S. dollar notes due June 1, 2026 $ 500  2.550 
U.S. dollar notes due September 1, 2026 $ 1,000  2.250 
Euro notes due September 22, 2026 € 587  0.750 
Euro notes due September 22, 2026 € 343  1.875