How much new term debt did Apple borrow in fiscal 2021? When will this new debt be repaid? Does this new debt pay fixed or variable rates of interest? What is the financing cost (interest rate) of the new term debt added in fiscal 2021?
Commercial Paper and Repurchase Agreements The Company issues unsecured short-term promissory notes ("Commercial Paper") pursuant to a commercial paper program. The Company uses net proceeds from the commercial paper program for general corporate purposes, including dividends and share repurchases. As of September 25, 2021 and September 26, 2020, the Company had $6.0 billion and $5.0 billion of Commercial Paper outstanding, respectively, with maturities generally less than nine months. The weighted average interest rate of the Company's Commercial Paper was 0.06% and 0.62% as of September 25, 2021 and September 26, 2020, respectively. The following table provides a summary of cash flows associated with the issuance and maturities of Commercial Paper for 2021, 2020 and 2019 (in millions): 2021 2020 2019 Maturities 90 days or less: Proceeds from/(Repayments of) commercial paper, net $ (357) $ 100 $ (3,248) 7,946 6,185 Maturities greater than 90 days: Proceeds from commercial paper Repayments of commercial paper Proceeds from/(Repayments of) commercial paper, net (6,567) 1,379 (7,248) (1,063) 13,874 (16,603) (2,729) Total proceeds from/(repayments of) commercial paper, net $ 1,022 $ (963) $ (5,977) Term Debt As of September 25, 2021, the Company had outstanding floating- and fixed-rate notes with varying maturities for an aggregate principal amount of $118.1 billion (collectively the "Notes"). The Notes are senior unsecured obligations and interest is payable in arrears. The following table provides a summary of the Company's term debt as of September 25, 2021 and September 26, 2020: 2021 2020 Maturities Amount Effective Amount Effective (calendar year) (in millions) Interest Rate (in millions) Interest Rate 2013 - 2020 debt issuances: Floating-rate notes 2022 $ 1,750 0.48% - 0.63% $ 2,250 0.60% -1.39% Fixed-rate 0.000% - 4.650% notes 2022 - 2060 95,813 0.03% -4.78% 103,828 0.03% -4.78% Second quarter 2021 debt issuance: Fixed-rate 0.700% - 2.800% notes 2026 - 2061 14,000 0.75% - 2.81% Fourth quarter 2021 debt issuance: Fixed-rate 1.400% - 2.850% notes Total term debt 2028 - 2061 1.43% - 2.86% 6,500 118,063 106,078 (380) Unamortized premium/(discount) and issuance costs, net Hedge accounting fair value adjustments Less: Current portion of term debt Total non-current portion of term debt 1,036 (9,613) 109,106 (314) 1,676 (8,773) 98,667 $ $ To manage interest rate risk on certain of its U.S. dollar-denominated fixed- or floating-rate notes, the Company has entered into interest rate swaps to effectively convert the fixed interest rates to floating interest rates or the floating interest rates to fixed interest rates on a portion of these notes. Additionally, to manage foreign currency risk on certain of its foreign currency- denominated notes, the Company has entered into foreign currency swaps to effectively convert these notes to U.S. dollar- denominated notes. The effective interest rates for the Notes include the interest on the Notes, amortization of the discount or premium and, if applicable, adjustments related to hedging. The Company recognized $2.6 billion, $2.8 billion and $3.2 billion of interest expense on its term debt for 2021, 2020 and 2019, respectively. The future principal payments for the Company's Notes as of September 25, 2021, are as follows (in millions): 2022 9,583 2023 11,391 2024 10,202 2025 10,914 2026 11,408 Thereafter 64,565 Total term debt 118,063 $ Apple Inc. CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) September 25, 2021 September 26, 2020 ASSETS: Current assets: Cash and cash equivalents Marketable securities Accounts receivable, net Inventories Vendor non-trade receivables Other current assets Total current assets 34,940 $ 27,699 26,278 6,580 25,228 14,111 134,836 38,016 52,927 16,120 4,061 21,325 11,264 143,713 Non-current assets: Marketable securities Property, plant and equipment, net Other non-current assets Total non-current assets Total assets 127,877 39,440 48,849 216,166 351,002 $ 100,887 36,766 42,522 180,175 323,888 $ LIABILITIES AND SHAREHOLDERS' EQUITY: Current liabilities: Accounts payable Other current liabilities Deferred revenue Commercial paper Term debt Total current liabilities 54,763 $ 47,493 7,612 6,000 9,613 125,481 42,296 42,684 6,643 4,996 8,773 105,392 Non-current liabilities: Term debt Other non-current liabilities Total non-current liabilities Total liabilities 109,106 53,325 162,431 287,912 98,667 54,490 153, 157 258,549 Commitments and contingencies Shareholders' equity: Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 16,426,786 and 16,976,763 shares issued and outstanding, respectively Retained earnings Accumulated other comprehensive income/(loss) Total shareholders' equity Total liabilities and shareholders' equity 57,365 5,562 163 63,090 351,002 $ 50,779 14,966 (406) 65,339 323,888 $
