NOTE 10 — DEBT

Short-term Debt

As of September 30, 2016, we had $14.5 billion of commercial paper issued and outstanding, with a weighted-average interest rate of 0.55% and maturities ranging from 47 days to 187 days. As of June 30, 2016, we had $12.9 billion of commercial paper issued and outstanding, with a weighted-average interest rate of 0.43% and maturities ranging from 1 day to 99 days. The estimated fair value of this commercial paper approximates its carrying value.

We have two $5.0 billion credit facilities that expire on November 1, 2016 and November 14, 2018, respectively. These credit facilities serve as a back-up for our commercial paper program. As of September 30, 2016, we were in compliance with the only financial covenant in both credit agreements, 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 agreements. No amounts were drawn against these credit facilities during any of the periods presented.

Long-term Debt

As of September 30, 2016, the total carrying value and estimated fair value of our long-term debt were $60.2 billion and $64.0 billion, respectively. As of June 30, 2016, the total carrying value and estimated fair value of our long-term debt were $40.6 billion and $44.0 billion, respectively. 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 September 30, 2016 and June 30, 2016:

 

Due Date						Face Value September 30, 2016				Face Value June 30, 2016				Stated Interest Rate				Effective Interest Rate
						(In millions)
Notes
November 15, 2017							600				600				0.875%				1.084%
May 1, 2018							450				450				1.000%				1.106%
November 3, 2018							1,750				1,750				1.300%				1.396%
December 6, 2018							1,250				1,250				1.625%				1.824%
June 1, 2019							1,000				1,000				4.200%				4.379%
August 8, 2019 (a)							2,500				*				1.100%				1.203%
February 12, 2020							1,500				1,500				1.850%				1.935%
October 1, 2020							1,000				1,000				3.000%				3.137%
November 3, 2020							2,250				2,250				2.000%				2.093%
February 8, 2021							500				500				4.000%				4.082%
August 8, 2021 (a)							2,750				*				1.550%				1.642%
December 6, 2021 (b)							1,967				1,944				2.125%				2.233%
February 12, 2022							1,500				1,500				2.375%				2.466%
November 3, 2022							1,000				1,000				2.650%				2.717%
November 15, 2022							750				750				2.125%				2.239%
May 1, 2023							1,000				1,000				2.375%				2.465%
August 8, 2023 (a)							1,500				*				2.000%				2.101%
December 15, 2023							1,500				1,500				3.625%				3.726%
February 12, 2025							2,250				2,250				2.700%				2.772%
November 3, 2025							3,000				3,000				3.125%				3.176%
August 8, 2026 (a)							4,000				*				2.400%				2.464%
December 6, 2028 (b)							1,967				1,944				3.125%				3.218%
May 2, 2033 (b)							617				611				2.625%				2.690%
February 12, 2035							1,500				1,500				3.500%				3.604%
November 3, 2035							1,000				1,000				4.200%				4.260%
August 8, 2036 (a)							2,250				*				3.450%				3.510%
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							500				500				4.875%				4.918%
February 12, 2045							1,750				1,750				3.750%				3.800%
November 3, 2045							3,000				3,000				4.450%				4.492%
August 8, 2046 (a)							4,500				*				3.700%				3.743%
February 12, 2055							2,250				2,250				4.000%				4.063%
November 3, 2055							1,000				1,000				4.750%				4.782%
August 8, 2056 (a)							2,250				*				3.950%				4.033%
Total						$	60,751			$	40,949

 

(a)	In August 2016, we issued $19.8 billion of debt securities.

 

(b)	Euro-denominated debt securities.

 

*	Not applicable

The notes in the table above 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. Effective July 1, 2016, we retrospectively adopted accounting guidance that requires debt issuance costs to be recorded as a deduction from the carrying amount of the debt liability, consistent with debt discounts. As of September 30, 2016 and June 30, 2016, the combined aggregate unamortized discount and debt issuance costs associated with our long-term debt were $597 million and $392 million, respectively.