Medtronic 2016 Annual Report Download - page 96

Table of Contents
Medtronic plc
Notes to Consolidated Financial Statements (Continued)
93
7. Financing Arrangements
Short-term debt consisted of the following:
(in millions) April 29, 2016 April 24, 2015
Capital lease obligations $ 106 $ 16
Bank borrowings 387 303
Floating rate three-year 2014 senior notes 250 —
0.875 percent three-year 2014 senior notes 250 —
2.625 percent five-year 2011 senior notes — 500
4.750 percent ten-year 2005 senior notes — 600
1.350 percent 2012 CIFSA senior notes — 600
2.800 percent 2010 CIFSA senior notes — 400
Interest rate swaps — 10
Debt premium — 5
Total Short-Term Borrowings $ 993 $ 2,434
Commercial Paper On January 26, 2015, Medtronic Global Holdings S.C.A., an entity organized under the laws of Luxembourg
(Medtronic Luxco), entered into various agreements pursuant to which Medtronic Luxco may issue unsecured commercial paper
notes (the 2015 Commercial Paper Program) on a private placement basis up to a maximum aggregate amount outstanding at any
time of $3.5 billion. The Company and Medtronic, Inc. have guaranteed the obligations of Medtronic Luxco under the 2015
Commercial Paper Program. No amounts were outstanding as of April 29, 2016 and April 24,2015.
During fiscal years 2016 and 2015, the weighted average original maturity of the commercial paper outstanding was approximately
49 and 52 days, respectively, and the weighted average interest rate was 0.57 percent and 0.13 percent, respectively. The issuance
of commercial paper reduces the amount of credit available under the Company's existing line of credit.
Bank Borrowings Outstanding bank borrowings as of April 29, 2016 were short-term advances to certain non-U.S. subsidiaries
under credit agreements with various banks. Bank borrowings consist primarily of borrowings at interest rates considered favorable
by management ranging from 0.18% to 0.19% and the borrowing is a natural hedge of currency and exchange rate risk.
Line of Credit The Company has a $3.5 billion Five Year Revolving Credit Facility ($3.5 billion Five Year Revolving Credit
Facility), by and among Medtronic, Medtronic, Inc., Medtronic Luxco, the lenders from time to time party thereto and Bank of
America, N.A., as administrative agent and issuing bank, which expires in January 2020. The $3.5 billion Five Year Revolving
Credit Facility provides the Company with the ability to increase its borrowing capacity by an additional $500 million at any time
during the term of the agreement. At each anniversary date of the $3.5 billion Five Year Revolving Credit Facility, but not more
than twice prior to the maturity date, the Company could also request a one-year extension of the maturity date. The Company,
Medtronic Luxco, and Medtronic, Inc. guarantee the obligations under the Amended and Restated Revolving Credit Agreement.
As of April 29, 2016 and April 24, 2015, no amounts were outstanding on the committed line of credit.
Interest rates are determined by a pricing matrix, based on the Company’s long-term debt ratings, assigned by Standard & Poor’s
Ratings Services and Moody’s Investors Service. Facility fees are payable on the Credit Facility and are determined in the same
manner as the interest rates. The agreement also contains customary covenants, all of which the Company remains in compliance
with as of April 29, 2016.