Notes to Financial Statements
NOTE 11 — DEBT
The components of debt were as follows:
|
(In millions, issuance by calendar year) |
|
Maturities (calendar year) |
|
Stated Interest Rate |
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|
Effective Interest Rate |
|
June 30, 2022 |
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June 30, 2021 |
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2009 issuance of $3.8 billion (a) |
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2039 |
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5.20% |
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5.24% |
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|
$ |
520 |
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$ |
520 |
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2010 issuance of $4.8 billion (a) |
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2040 |
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4.50% |
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|
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4.57% |
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|
486 |
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|
486 |
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2011 issuance of $2.3 billion (a) |
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2041 |
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5.30% |
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5.36% |
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|
718 |
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|
718 |
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2012 issuance of $2.3 billion (a) |
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2022 |
– |
2042 |
|
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2.13% |
– |
3.50% |
|
|
2.24% |
– |
3.57% |
|
|
|
1,204 |
|
|
|
1,204 |
|
|
2013 issuance of $5.2 billion (a) |
|
|
2023 |
– |
2043 |
|
|
2.38% |
– |
4.88% |
|
|
2.47% |
– |
4.92% |
|
|
|
2,814 |
|
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|
2,814 |
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|
2013 issuance of €4.1 billion |
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|
2028 |
– |
2033 |
|
|
2.63% |
– |
3.13% |
|
|
2.69% |
– |
3.22% |
|
|
|
2,404 |
|
|
|
4,803 |
|
|
2015 issuance of $23.8 billion (a) |
|
|
2022 |
– |
2055 |
|
|
2.65% |
– |
4.75% |
|
|
2.72% |
– |
4.78% |
|
|
|
10,805 |
|
|
|
12,305 |
|
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2016 issuance of $19.8 billion (a) |
|
|
2023 |
– |
2056 |
|
|
2.00% |
– |
3.95% |
|
|
2.10% |
– |
4.03% |
|
|
|
9,430 |
|
|
|
12,180 |
|
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2017 issuance of $17.0 billion (a) |
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|
2024 |
– |
2057 |
|
|
2.88% |
– |
4.50% |
|
|
3.04% |
– |
4.53% |
|
|
|
8,945 |
|
|
|
10,695 |
|
|
2020 issuance of $10.0 billion (a) |
|
|
2050 |
– |
2060 |
|
|
2.53% |
– |
2.68% |
|
|
2.53% |
– |
2.68% |
|
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|
10,000 |
|
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|
10,000 |
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2021 issuance of $8.2 billion (a) |
|
|
2052 |
– |
2062 |
|
|
2.92% |
– |
3.04% |
|
|
2.92% |
– |
3.04% |
|
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|
8,185 |
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|
8,185 |
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Total face value |
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|
55,511 |
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|
63,910 |
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Unamortized discount and issuance costs |
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(471 |
) |
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(511 |
) |
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Hedge fair value adjustments (b) |
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(68 |
) |
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|
40 |
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Premium on debt exchange (a) |
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(5,191 |
) |
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(5,293 |
) |
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Total debt |
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|
|
|
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|
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|
49,781 |
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|
58,146 |
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Current portion of long-term debt |
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(2,749 |
) |
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(8,072 |
) |
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Long-term debt |
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|
$ |
47,032 |
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|
$ |
50,074 |
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(a) |
In March 2021 and June 2020, we exchanged a portion of our existing debt at a premium for cash and new debt with longer maturities. The premiums are amortized over the terms of the new debt. |
|
(b) |
Refer to Note 5 – Derivatives for further information on the interest rate swaps related to fixed-rate debt. |
As of June 30, 2022 and 2021, the estimated fair value of long-term debt, including the current portion, was $50.9 billion and $70.0 billion, respectively. The estimated fair values are based on Level 2 inputs.
Debt in the table above is comprised of senior unsecured obligations and ranks equally with our other outstanding obligations. Interest is paid semi-annually, except for the Euro-denominated debt, which is paid annually. Cash paid for interest on our debt for fiscal years 2022, 2021, and 2020 was $1.9 billion, $2.0 billion, and $2.4 billion, respectively.
The following table outlines maturities of our long-term debt, including the current portion, as of June 30, 2022:
|
(In millions) |
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|
Year Ending June 30, |
|
|
|
|
|
|
|
|
|
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|
2023 |
|
$ |
2,750 |
|
|
2024 |
|
|
5,250 |
|
|
2025 |
|
|
2,250 |
|
|
2026 |
|
|
3,000 |
|
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2027 |
|
|
8,000 |
|
|
Thereafter |
|
|
34,261 |
|
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Total |
|
$ |
55,511 |
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