The following table sets forth total interest expense recognized related to the 2.125% Notes:
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Three Months Ended |
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Nine Months Ended |
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September 28,
2019 |
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September 29,
2018 |
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September 28,
2019 |
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September 29,
2018 |
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(In millions) |
Contractual interest expense |
$ |
4 |
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$ |
5 |
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$ |
12 |
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$ |
13 |
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Interest cost related to amortization of debt issuance costs |
$ |
— |
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$ |
— |
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$ |
1 |
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$ |
1 |
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Interest cost related to amortization of the debt discount |
$ |
6 |
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$ |
6 |
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$ |
18 |
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$ |
18 |
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The 2.125% Notes consisted of the following:
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September 28,
2019 |
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December 29,
2018 |
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(In millions) |
Principal amounts: |
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Principal |
$ |
679 |
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$ |
805 |
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Unamortized debt discount(1)
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(205 |
) |
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(262 |
) |
Unamortized debt issuance costs |
(8 |
) |
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(11 |
) |
Net carrying amount |
$ |
466 |
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$ |
532 |
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Carrying amount of the equity component, net(2)
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$ |
258 |
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$ |
305 |
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(1) |
Included in the consolidated balance sheets within Long-term debt, net and amortized over the remaining life of the notes using the effective interest rate method. |
(2)
Included in the consolidated balance sheets within additional paid-in capital, net of $8 million of equity issuance costs.
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