Commercial paper

  
discounted cash flows to estimate the fair value of our long-term loan receivables and financed service contracts, and therefore they are categorized as Level 3.As of July 30, 2022 and July 31, 2021, the estimated fair value of our short-term debt approximates its carrying value due to the short maturities. As of July 30, 2022, the fair value of our senior notes was $9.7 billion, with a carrying amount of $8.9 billion. This compares to a fair value of $13.7 billion and a carrying amount of $11.5 billion as of July 31, 2021. The fair value of the senior notes was determined based on observable market prices in a less active market and was categorized as Level 2 in the fair value hierarchy.   
12.Borrowings (a)Short-Term DebtThe following table summarizes our short-term debt (in millions, except percentages):

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|   | July 30, 2022 |  | July 31, 2021 |
|   | Amount |  | Effective Rate |  | Amount |  | Effective Rate |
| Current portion of long-term debt | $ | 499  |  |  | 2.68  | % |  | $ | 2,508  |  |  | 1.75  | % |
| Commercial paper | 600  |  |  | 2.05  | % |  | —  |  |  | —  |  |
| Total | $ | 1,099  |  |  |  |  | $ | 2,508  |  |  |  |

We have a short-term debt financing program of up to $10.0 billion through the issuance of commercial paper notes. We use the proceeds from the issuance of commercial paper notes for general corporate purposes.The effective rates for the short- and long-term debt include the interest on the notes, the accretion of the discount, the issuance costs, and, if applicable, adjustments related to hedging.(b)Long-Term DebtThe following table summarizes our long-term debt (in millions, except percentages):

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|   |  |  | July 30, 2022 |  | July 31, 2021 |
|   | Maturity Date |  | Amount |  | Effective Rate |  | Amount |  | Effective Rate |
| Senior notes: |  |  |  |  |  |  |  |  |  |
| Fixed-rate notes: |  |  |  |  |  |  |  |  |  |
| 1.85% | September 20, 2021 |  | $ | —  |  |  | — |  | $ | 2,000  |  |  | 1.90% |
| 3.00% | June 15, 2022 |  | —  |  |  | — |  | 500  |  |  | 1.13% |
| 2.60% | February 28, 2023 |  | 500  |  |  | 2.68% |  | 500  |  |  | 2.68% |
| 2.20% | September 20, 2023 |  | 750  |  |  | 2.27% |  | 750  |  |  | 2.27% |
| 3.625% | March 4, 2024 |  | 1,000  |  |  | 2.69% |  | 1,000  |  |  | 1.00% |
| 3.50% | June 15, 2025 |  | 500  |  |  | 3.20% |  | 500  |  |  | 1.29% |
| 2.95% | February 28, 2026 |  | 750  |  |  | 3.01% |  | 750  |  |  | 3.01% |
| 2.50% | September 20, 2026 |  | 1,500  |  |  | 2.55% |  | 1,500  |  |  | 2.55% |
| 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% |
| Total |  |  | 9,000  |  |  |  |  | 11,500  |  |  |  |
| Unaccreted discount/issuance costs |  |  | (75) |  |  |  |  | (80) |  |  |  |
| Hedge accounting fair value adjustments |  |  | (10) |  |  |  |  | 106  |  |  |  |
| Total |  |  | $ | 8,915  |  |  |  |  | $ | 11,526  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |
| Reported as: |  |  |  |  |  |  |  |  |  |
| Short-term debt |  |  | $ | 499  |  |  |  |  | $ | 2,508  |  |  |  |
| Long-term debt |  |  | 8,416  |  |  |  |  | 9,018  |  |  |  |
| Total |  |  | $ | 8,915  |  |  |  |  | $ | 11,526  |  |  |  |

  
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