NOTE 11 — DEBT
Short-term Debt
As of September 30, 2017, we had $8.2 billion of commercial paper issued and outstanding, with a weighted average interest rate of 1.20% and maturities ranging from 34 days to 196 days. As of June 30, 2017, we had $9.1 billion of commercial paper issued and outstanding, with a weighted average interest rate of 1.01% and maturities ranging from 25 days to 264 days. The estimated fair value of this commercial paper approximates its carrying value.
We have two $5.0 billion credit facilities that expire on October 31, 2017 and November 14, 2018, respectively. We expect to enter into two new $5.0 billion credit facilities in October 2017 which will replace each of our existing facilities. These credit facilities serve as a back-up for our commercial paper program. As of September 30, 2017, 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 September 30, 2017, the total carrying value and estimated fair value of our long-term debt, including the current portion, were $77.3 billion and $81.3 billion, respectively. As of June 30, 2017, the total carrying value and estimated fair value of our long-term debt, including the current portion, were $77.1 billion and $80.3 billion, respectively. These estimated fair values are based on Level 2 inputs.
The components of our long-term debt, including the current portion, and the associated interest rates were as follows:
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(In millions, except interest rates) |
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Face Value September 30, 2017 |
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Face Value June 30, 2017 |
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Stated Interest Rate |
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Effective Interest Rate |
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Notes |
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November 15, 2017 |
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$ |
600 |
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$ |
600 |
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0.875% |
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1.084% |
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May 1, 2018 |
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450 |
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450 |
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1.000% |
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1.106% |
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November 3, 2018 |
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1,750 |
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1,750 |
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1.300% |
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1.396% |
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December 6, 2018 |
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1,250 |
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1,250 |
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1.625% |
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1.824% |
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June 1, 2019 |
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1,000 |
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1,000 |
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4.200% |
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4.379% |
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August 8, 2019
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2,500 |
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2,500 |
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1.100% |
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1.203% |
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November 1, 2019
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18 |
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18 |
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0.500% |
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0.500% |
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February 6, 2020
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1,500 |
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1,500 |
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1.850% |
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1.952% |
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February 12, 2020 |
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1,500 |
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1,500 |
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1.850% |
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1.935% |
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October 1, 2020 |
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1,000 |
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1,000 |
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3.000% |
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3.137% |
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November 3, 2020 |
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2,250 |
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2,250 |
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2.000% |
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2.093% |
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February 8, 2021 |
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500 |
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500 |
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4.000% |
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4.082% |
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August 8, 2021
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2,750 |
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2,750 |
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1.550% |
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1.642% |
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December 6, 2021 (a)
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2,069 |
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1,996 |
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2.125% |
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2.233% |
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February 6, 2022
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1,750 |
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1,750 |
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2.400% |
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2.520% |
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February 12, 2022 |
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1,500 |
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1,500 |
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2.375% |
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2.466% |
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November 3, 2022 |
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1,000 |
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1,000 |
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2.650% |
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2.717% |
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November 15, 2022 |
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750 |
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750 |
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2.125% |
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2.239% |
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May 1, 2023 |
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1,000 |
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1,000 |
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2.375% |
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2.465% |
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August 8, 2023
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1,500 |
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1,500 |
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2.000% |
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2.101% |
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December 15, 2023 |
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1,500 |
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1,500 |
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3.625% |
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3.726% |
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February 6, 2024
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2,250 |
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2,250 |
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2.875% |
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3.041% |
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February 12, 2025 |
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2,250 |
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2,250 |
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2.700% |
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2.772% |
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November 3, 2025 |
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3,000 |
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3,000 |
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3.125% |
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3.176% |
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August 8, 2026
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4,000 |
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4,000 |
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2.400% |
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2.464% |
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February 6, 2027
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4,000 |
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4,000 |
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3.300% |
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3.383% |
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December 6, 2028 (a)
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2,069 |
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1,996 |
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3.125% |
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3.218% |
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May 2, 2033 (a)
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651 |
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627 |
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2.625% |
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2.690% |
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February 12, 2035 |
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1,500 |
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1,500 |
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3.500% |
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3.604% |
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November 3, 2035 |
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1,000 |
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1,000 |
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4.200% |
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4.260% |
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August 8, 2036 |
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2,250 |
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2,250 |
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3.450% |
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3.510% |
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February 6, 2037
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2,500 |
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2,500 |
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4.100% |
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4.152% |
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June 1, 2039 |
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750 |
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|
750 |
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5.200% |
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5.240% |
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October 1, 2040 |
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1,000 |
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1,000 |
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4.500% |
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4.567% |
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February 8, 2041 |
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1,000 |
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1,000 |
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5.300% |
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5.361% |
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November 15, 2042 |
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|
900 |
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|
900 |
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3.500% |
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3.571% |
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May 1, 2043 |
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500 |
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|
500 |
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3.750% |
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3.829% |
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December 15, 2043 |
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500 |
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|
500 |
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4.875% |
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4.918% |
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February 12, 2045 |
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1,750 |
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1,750 |
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3.750% |
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3.800% |
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November 3, 2045 |
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3,000 |
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3,000 |
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4.450% |
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4.492% |
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August 8, 2046
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4,500 |
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4,500 |
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3.700% |
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3.743% |
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February 6, 2047
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3,000 |
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3,000 |
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4.250% |
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4.287% |
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February 12, 2055 |
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2,250 |
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2,250 |
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4.000% |
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4.063% |
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November 3, 2055 |
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1,000 |
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1,000 |
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4.750% |
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4.782% |
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August 8, 2056
|
|
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2,250 |
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|
2,250 |
|
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3.950% |
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4.033% |
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February 6, 2057
|
|
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2,000 |
|
|
|
2,000 |
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4.500% |
|
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4.528% |
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Total |
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$ |
78,007 |
|
|
$ |
77,837 |
|
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(a) |
Euro-denominated debt securities. |
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. As of September 30, 2017 and June 30, 2017, the aggregate debt issuance costs and unamortized discount associated with our long-term debt, including the current portion, were $702 million and $715 million, respectively.