Cisco 2015 Annual Report Download - page 108

The Company repaid the floating-rate notes due on September 3, 2015 for an aggregate principal amount of $850 million upon
maturity.
In fiscal 2011, the Company established a short-term debt financing program of up to $3.0 billion through the issuance of
commercial paper notes. The Company uses the proceeds from the issuance of commercial paper notes for general corporate
purposes. The Company did not have any commercial paper notes outstanding as of each of July 25, 2015 and July 26, 2014.
(b) Long-Term Debt
The following table summarizes the Company’s long-term debt (in millions, except percentages):
July 25, 2015 July 26, 2014
Maturity Date Amount Effective Rate Amount Effective Rate
Senior notes:
Floating-rate notes:
Three-month LIBOR plus 0.05% ............ September 3, 2015 $ 850 0.43% $ 850 0.35%
Three-month LIBOR plus 0.28% ............ March 3, 2017 1,000 0.63% 1,000 0.56%
Three-month LIBOR plus 0.31% ............ June 15, 2018 (1) 900 0.65% ——
Three-month LIBOR plus 0.50% ............ March 1, 2019 500 0.84% 500 0.78%
Fixed-rate notes:
2.90% ....................................... November 17, 2014 —— 500 3.11%
5.50% ....................................... February 22, 2016 3,000 3.07% 3,000 3.04%
1.10% ....................................... March 3, 2017 2,400 0.59% 2,400 0.56%
3.15% ....................................... March 14, 2017 750 0.85% 750 0.79%
1.65% ....................................... June 15, 2018 (1) 1,600 1.72% ——
4.95% ....................................... February 15, 2019 2,000 4.70% 2,000 4.69%
2.125% ...................................... March 1, 2019 1,750 0.80% 1,750 0.77%
4.45% ....................................... January 15, 2020 2,500 3.01% 2,500 2.98%
2.45% ....................................... June 15, 2020 (1) 1,500 2.54% ——
2.90% ....................................... March 4, 2021 500 0.96% 500 0.93%
3.00% ....................................... June 15, 2022 (1) 500 1.21% ——
3.625% ...................................... March 4, 2024 1,000 1.08% 1,000 1.05%
3.50% ....................................... June 15, 2025 (1) 500 1.37% ——
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%
Other long-term debt ........................... 1 2.08% 4 2.39%
Total .............................. 25,251 20,754
Unaccreted discount/issuance costs .......... (131) (127)
Hedge accounting fair value adjustments ..... 231 210
Total .............................. $ 25,351 $ 20,837
Reported as:
Current portion of long-term debt ............ $ 3,894 $ 500
Long-term debt .............................. 21,457 20,337
Total .............................. $ 25,351 $ 20,837
(1) In June 2015, the Company issued senior notes for an aggregate principal amount of $5.0 billion.
To achieve its interest rate risk management objectives, the Company entered into interest rate swaps in prior periods with an
aggregate notional amount of $11.4 billion designated as fair value hedges of certain of its fixed-rate senior notes. In effect, 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.
The effective rates for the fixed-rate debt include the interest on the notes, the accretion of the discount, and, if applicable,
adjustments related to hedging. Interest is payable semiannually on each class of the senior fixed-rate notes and payable quarterly
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