NOTE 12 — DEBT

As of June 30, 2014, we had $22.6 billion of issued and outstanding debt, comprising $2.0 billion of short-term debt and $20.6 billion of long-term debt. As of June 30, 2013, we had $15.6 billion of issued and outstanding long-term debt.

Short-term Debt

As of June 30, 2014, we had $2.0 billion of commercial paper issued and outstanding, with a weighted-average interest rate of 0.12% and maturities ranging from 86 days to 91 days. The estimated fair value of this commercial paper approximates its carrying value.

We have a $5.0 billion credit facility that expires on November 14, 2018, which serves as a back-up for our commercial paper program. As of June 30, 2014, we were in compliance with the only financial covenant in the credit agreement, which requires us to maintain a coverage ratio of at least three times earnings before interest, taxes, depreciation, and amortization to interest expense, as defined in the credit agreement. No amounts were drawn against the credit facility during any of the periods presented.

Long-term Debt

As of June 30, 2014, the total carrying value and estimated fair value of our long-term debt were $20.6 billion and $21.5 billion, respectively. This is compared to a carrying value and estimated fair value of our long-term debt, including the current portion, of $15.6 billion and $15.8 billion, respectively, as of June 30, 2013. These estimated fair values are based on Level 2 inputs.

 

The components of our long-term debt and the associated interest rates were as follows as of June 30, 2014 and 2013:

 

Due Date		Face Value June 30, 2014				Face Value June 30, 2013				Stated Interest Rate				Effective Interest Rate
						(In millions)
Notes
September 27, 2013		$	*			$	1,000				0.875%				1.000%
June 1, 2014			*				2,000				2.950%				3.049%
September 25, 2015			1,750				1,750				1.625%				1.795%
February 8, 2016			750				750				2.500%				2.642%
November 15, 2017			600				600				0.875%				1.084%
May 1, 2018			450				450				1.000%				1.106%
December 6, 2018 (a)			1,250				*				1.625%				1.824%
June 1, 2019			1,000				1,000				4.200%				4.379%
October 1, 2020			1,000				1,000				3.000%				3.137%
February 8, 2021			500				500				4.000%				4.082%
December 6, 2021 (b)			2,396				*				2.125%				2.233%
November 15, 2022			750				750				2.125%				2.239%
May 1, 2023			1,000				1,000				2.375%				2.465%
December 15, 2023 (a)			1,500				*				3.625%				3.726%
December 6, 2028 (b)			2,396				*				3.125%				3.218%
May 2, 2033 (c)			753				715				2.625%				2.690%
June 1, 2039			750				750				5.200%				5.240%
October 1, 2040			1,000				1,000				4.500%				4.567%
February 8, 2041			1,000				1,000				5.300%				5.361%
November 15, 2042			900				900				3.500%				3.571%
May 1, 2043			500				500				3.750%				3.829%
December 15, 2043 (a)			500				*				4.875%				4.918%
Total		$	20,745			$	15,665

 

(a)	In December 2013, we issued $3.3 billion of debt securities.

(b)	In December 2013, we issued €3.5 billion of debt securities.

(c)	In April 2013, we issued €550 million of debt securities.

*	Not applicable.

The notes in this table are senior unsecured obligations and rank equally with our other senior unsecured debt outstanding. Interest on these notes is paid semi-annually, except for the euro-denominated debt securities on which interest is paid annually. Cash paid for interest on our debt for fiscal years 2014, 2013, and 2012 was $509 million, $371 million, and $344 million, respectively. As of June 30, 2014 and 2013, the aggregate unamortized discount for our long-term debt, including the current portion, was $100 million and $65 million, respectively.

 

Debt Service

Maturities of our long-term debt for each of the next five years and thereafter are as follows:

 

(In millions)
Year Ending June 30,
2015		$	0
2016			2,500
2017			0
2018			1,050
2019			2,250
Thereafter			14,945
Total		$	20,745