Microsoft 2014 Annual Report Download - page 65

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64
NOTE 12 — DEBT
As of June 30, 2014, we had $22.6 billion of issued and outstanding debt, comprising $2.0 billion of short-term debt and
$20.6 billion of long-term debt. As of June 30, 2013, we had $15.6 billion of issued and outstanding long-term debt.
Short-term Debt
As of June 30, 2014, we had $2.0 billion of commercial paper issued and outstanding, with a weighted-average interest
rate of 0.12% and maturities ranging from 86 days to 91 days. The estimated fair value of this commercial paper
approximates its carrying value.
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 June 30, 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 amounts were drawn against the credit facility
during any of the periods presented.
Long-term Debt
As of June 30, 2014, the total carrying value and estimated fair value of our long-term debt were $20.6 billion and $21.5
billion, respectively. This is compared to a carrying value and estimated fair value of our long-term debt, including the
current portion, 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 and the associated interest rates were as follows as of June 30, 2014 and 2013:
Due Date
Face
V
alue
June 30,
2014
Face
V
alue
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 2.950% 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) 2,396 * 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) 2,396 * 3.125% 3.218%
May 2, 2033 (c) 753 715 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 $ 20,745 $ 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.