Microsoft 2013 Annual Report Download - page 66

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2013, we exercised the capped calls. The bulk of the capped calls were physically settled by acquiring 29 million shares of
our own common stock for $938 million. The remaining capped calls were net cash settled for $24 million.
Debt Service
Maturities of our long-term debt for each of the next five years and thereafter are as follows:
(In millions)
Year Ending June 30,
2014
$ 3,000
2015
0
2016
2,500
2017
0
2018
1,050
Thereafter
9,115
Total
$ 15,665
Interest on the 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 2013, 2012, and 2011 was $371 million, $344 million, and
$197 million, respectively.
Credit Facility
In June 2013, we established a commercial paper program for the issuance and sale of up to $1.3 billion in commercial
paper. As of June 30, 2013, we have not issued any commercial paper under this program.
In June 2013, we entered into a $1.3 billion credit facility, which will serve as a back-up for our commercial paper
program. As of June 30, 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. The credit facility expires on June 24, 2018. No
amounts were drawn against the credit facility since its inception.
NOTE 13 — INCOME TAXES
The components of the provision for income taxes were as follows:
(In millions)
Year Ended June 30,
2013
2012
2011
Current Taxes
U.S. federal
$ 3,131
$ 2,235
$ 3,108
U.S. state and local
332
153
209
International
1,745
1,947
1,602
Current taxes
5,208
4,335
4,919
Deferred Taxes
Deferred taxes
(19)
954
2
Provision for income taxes
$ 5,189
$ 5,289
$ 4,921