Long-term debt


Notes to Financial Statements

NOTE 10 — DEBT

As of December 31, 2013, we had $23.0 billion of issued and outstanding debt, comprising $300 million of commercial paper and $22.7 billion of long-term debt, including the current portion.

Short-term Debt

As of December 31, 2013, we had $300 million of commercial paper issued and outstanding, with a weighted-average interest rate of 0.11% and maturities of 91 days. The estimated fair value of this commercial paper approximates its carrying value.

 

In November 2013, we amended our existing credit agreement to increase our credit facility from $1.3 billion to $5.0 billion and extend the expiration date to November 14, 2018. This facility serves as a back-up for our commercial paper program. As of December 31, 2013, 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 December 31, 2013, the total carrying value and estimated fair value of our long-term debt, including the current portion, were $22.7 billion and $22.6 billion, respectively. This is compared to a carrying value and estimated fair value 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, including the current portion, and the associated interest rates were as follows as of December 31, 2013 and June 30, 2013:

 

Due Date  

Face Value

December 31,
2013

   

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        2,000        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)

             2,412        *        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)

             2,412        *        3.125%         3.218%   

May 2, 2033 (c)

             757        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

           $   22,781      $   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 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. As of December 31, 2013 and June 30, 2013, the aggregate unamortized discount for our long-term debt, including the current portion, was $105 million and $65 million, respectively.