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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Six Months Ended |
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June 29,
2019 |
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June 30,
2018 |
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June 29,
2019 |
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June 30,
2018 |
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(In millions) |
Contractual interest expense |
$ |
4 |
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$ |
4 |
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$ |
8 |
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$ |
9 |
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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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$ |
12 |
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$ |
12 |
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The 2.125% Notes consisted of the following:
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June 29,
2019 |
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December 29,
2018 |
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(In millions) |
Principal amounts: |
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Principal |
$ |
805 |
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$ |
805 |
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Unamortized debt discount(1)
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(249 |
) |
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(262 |
) |
Unamortized debt issuance costs |
(10 |
) |
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(11 |
) |
Net carrying amount |
$ |
546 |
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$ |
532 |
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Carrying amount of the equity component, net(2)
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$ |
305 |
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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 $9 million of equity issuance costs.
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