Microsoft 2013 Annual Report Download - page 65

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The components of our long-term debt, including the current portion, and the associated interest rates were as follows as
of June 30, 2013 and 2012:
Due Date
Face Value
June 30,
2013
Face Value
June 30,
2012
Stated
Interest
Rate
Effective
Interest
Rate
(In millions)
Notes
September 27, 2013
$ 1,000
$ 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
(a)
600
*
0.875%
1.084%
May 1, 2018
(b)
450
*
1.000%
1.106%
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%
November 15, 2022
(a)
750
*
2.125%
2.239%
May 1, 2023
(b)
1,000
*
2.375%
2.465%
May 2, 2033 (c)
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
(a)
900
*
3.500%
3.571%
May 1, 2043
(b)
500
*
3.750%
3.829%
Total
15,665
10,750
Convertible Debt
June 15, 2013
0
1,250
0.000%
1.849%
Total
$ 15,665
$ 12,000
(a) In November 2012, we issued $2.25 billion of debt securities.
(b) In April 2013, we issued $1.95 billion of debt securities.
(c) In April 2013, we issued €550 million of debt securities.
* Not applicable.
As of June 30, 2013 and 2012, the aggregate unamortized discount for our long-term debt, including the current portion,
was $65 million and $56 million, respectively.
Notes
The Notes are senior unsecured obligations and rank equally with our other unsecured and unsubordinated debt
outstanding.
Convertible Debt
In June 2013, we paid cash of $1.25 billion for the principal amount of our zero coupon convertible unsecured debt and
elected to deliver cash for the $96 million excess obligation resulting from the conversion of the notes. Each $1,000
principal amount of notes was convertible into 30.68 shares of Microsoft common stock at a conversion price of $32.59
per share. As of June 30, 2012, the net carrying amount of the convertible debt and the unamortized discount were $1.2
billion and $19 million, respectively.
In connection with the issuance of the notes in 2010, we entered into capped call transactions with certain option
counterparties with a strike price equal to the conversion price of the notes. Upon conversion of the notes in June