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Note 6 Debt 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 26, 2020 and September 28, 2019, the Company had $5.0 billion and $6.0 billion of Commercial Paper outstanding, respectively, with maturities generally less than nine months. The weighted-average interest rate of the Companys Commercial Paper was 0.62% and 2.24% as of September 26, 2020 and September 28, 2019, respectively. The following table provides a summary of cash flows associated with the issuance and maturities of Commercial Paper for 2020, 2019 and 2018 (in millions):

In 2020, the Company entered into agreements to sell certain of its marketable securities with a promise to repurchase the securities at a specified time and amount (Repos). Due to the Companys continuing involvement with the marketable securities, the Company accounted for its Repos as collateralized borrowings. The Company entered into $5.2 billion of Repos during 2020, all of which had been settled as of September 26, 2020.

Term Debt

As of September 26, 2020, the Company had outstanding floating- and fixed-rate notes with varying maturities for an aggregate principal amount of $106.1 billion (collectively the Notes). The Notes are senior unsecured obligations and interest is payable in arrears. The following table provides a summary of the Companys term debt as of September 26, 2020 and September 28, 2019:

To manage interest rate risk on certain of its U.S. dollardenominated 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.

As of September 28, 2019, a portion of the Companys Japanese yendenominated notes with a carrying value of $1.0 billion was designated as a hedge of the foreign currency exposure of the Companys net investment in a foreign operation. The Companys Japanese yendenominated notes matured during 2020 and the associated net investment hedges were terminated. For further discussion regarding the Companys use of derivative instruments, refer to the Derivative Financial Instruments section of Note 3, Financial Instruments.

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 $2.8 billion, $3.2 billion and $3.0 billion of interest cost on its term debt for 2020, 2019 and 2018, respectively.

The future principal payments for the Companys Notes as of September 26, 2020, are as follows (in millions)

As of September 26, 2020 and September 28, 2019, the fair value of the Companys Notes, based on Level 2 inputs, was $117.1 billion and $107.5 billion, respectively.

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