Notes to Financial Statements

NOTE 12 — DEBT

Short-term Debt

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. As of June 30, 2015, we had $5.0 billion of commercial paper issued and outstanding, with a weighted-average interest rate of 0.11% and maturities ranging from 8 days to 63 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 June 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 June 30, 2016, the total carrying value and estimated fair value of our long-term debt were $40.8 billion and $44.0 billion, respectively. This is compared to a carrying value and estimated fair value of our long-term debt, including the current portion, of $30.3 billion and $30.5 billion, respectively, as of June 30, 2015. 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 June 30, 2016 and 2015:

 

Due Date   

Face Value

June 30,

2016

   

Face Value

June 30,

2015

   

Stated

Interest

Rate

   

Effective

Interest

Rate

 


     (In millions)              

Notes

                                

September 25, 2015

   $ *      $     1,750        1.625%        1.795%   

February 8, 2016

     *        750        2.500%        2.642%   

November 15, 2017

     600        600        0.875%        1.084%   

May 1, 2018

     450        450        1.000%        1.106%   

November 3, 2018 (a)

         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%   

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 (a)

     2,250        *        2.000%        2.093%   

February 8, 2021

     500        500        4.000%        4.082%   

December 6, 2021 (b)

     1,944        1,950        2.125%        2.233%   

February 12, 2022

     1,500        1,500        2.375%        2.466%   

November 3, 2022 (a)

     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%   

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 (a)

     3,000        *        3.125%        3.176%   

December 6, 2028 (b)

     1,944        1,950        3.125%        3.218%   

May 2, 2033 (b)

     611        613        2.625%        2.690%   

February 12, 2035

     1,500        1,500        3.500%        3.604%   

November 3, 2035 (a)

     1,000        *        4.200%        4.260%   

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 (a)

     3,000        *        4.450%        4.492%   

February 12, 2055

     2,250        2,250        4.000%        4.063%   

November 3, 2055 (a)

     1,000        *        4.750%        4.782%   


 


               

Total

   $   40,949      $   30,463                   
    


 


               

 

(a)

In November 2015, we issued $13.0 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. Cash paid for interest on our debt for fiscal years 2016, 2015, and 2014 was $1.1 billion, $620 million, and $509 million, respectively. As of June 30, 2016 and 2015, the aggregate unamortized discount for our long-term debt, including the current portion, was $166 million and $156 million, respectively.

 

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

 

(In millions)       


Year Ending June 30,

        

2017

   $ 0   

2018

     1,050   

2019

     4,000   

2020

     1,500   

2021

     3,750   

Thereafter

     30,649   


Total

   $   40,949