Long-term debt


Notes to Financial Statements

NOTE 10 — DEBT

Long-term Debt

As of March 31, 2014, the total carrying value and estimated fair value of our long-term debt, including the current portion, were $22.7 billion and $23.2 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 March 31, 2014 and June 30, 2013:

Due Date

Face Value

March 31,
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 2,000 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)

758 715 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

$ 22,782 $ 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 March 31, 2014 and June 30, 2013, the aggregate unamortized discount for our long-term debt, including the current portion, was $103 million and $65 million, respectively.

Credit Facility

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 March 31, 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 commercial paper was outstanding as of March 31, 2014 or June 30, 2013, and no amounts were drawn against the credit facility during any of the periods presented.