Notes to Financial Statements
NOTE 11 — DEBT
Short-term Debt
As of June 30, 2019 and 2018, we had no commercial paper issued or outstanding. Effective August 31, 2018, we
terminated our credit facilities, which served as back-up for our commercial paper program.
Long-term Debt
As of June 30, 2019, the total carrying value and estimated fair value of our long-term debt, including the current portion, were $72.2 billion and $78.9 billion, respectively. As of June 30, 2018, the total carrying value and estimated fair value of our long-term debt, including the current portion, were $76.2 billion and $77.5 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:
|
(In millions, except interest rates) |
|
Face Value 2019 |
|
|
Face Value 2018 |
|
|
|
Stated Interest Rate |
|
|
|
Effective Interest Rate |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
November 3, 2018 |
|
$ |
0 |
|
|
$ |
1,750 |
|
|
|
1.300% |
|
|
|
1.396% |
|
|
December 6, 2018 |
|
|
0 |
|
|
|
1,250 |
|
|
|
1.625% |
|
|
|
1.824% |
|
|
June 1, 2019 |
|
|
0 |
|
|
|
1,000 |
|
|
|
4.200% |
|
|
|
4.379% |
|
|
August 8, 2019 |
|
|
2,500 |
|
|
|
2,500 |
|
|
|
1.100% |
|
|
|
1.203% |
|
|
November 1, 2019 |
|
|
18 |
|
|
|
18 |
|
|
|
0.500% |
|
|
|
0.500% |
|
|
February 6, 2020 |
|
|
1,500 |
|
|
|
1,500 |
|
|
|
1.850% |
|
|
|
1.952% |
|
|
February 12, 2020 |
|
|
1,500 |
|
|
|
1,500 |
|
|
|
1.850% |
|
|
|
1.935% |
|
|
October 1, 2020 |
|
|
1,000 |
|
|
|
1,000 |
|
|
|
3.000% |
|
|
|
3.137% |
|
|
November 3, 2020 |
|
|
2,250 |
|
|
|
2,250 |
|
|
|
2.000% |
|
|
|
2.093% |
|
|
February 8, 2021 |
|
|
500 |
|
|
|
500 |
|
|
|
4.000% |
|
|
|
4.082% |
|
|
August 8, 2021 |
|
|
2,750 |
|
|
|
2,750 |
|
|
|
1.550% |
|
|
|
1.642% |
|
|
December 6, 2021 (a) |
|
|
1,994 |
|
|
|
2,044 |
|
|
|
2.125% |
|
|
|
2.233% |
|
|
February 6, 2022 |
|
|
1,750 |
|
|
|
1,750 |
|
|
|
2.400% |
|
|
|
2.520% |
|
|
February 12, 2022 |
|
|
1,500 |
|
|
|
1,500 |
|
|
|
2.375% |
|
|
|
2.466% |
|
|
November 3, 2022 |
|
|
1,000 |
|
|
|
1,000 |
|
|
|
2.650% |
|
|
|
2.717% |
|
|
November 15, 2022 |
|
|
750 |
|
|
|
750 |
|
|
|
2.125% |
|
|
|
2.239% |
|
|
May 1, 2023 |
|
|
1,000 |
|
|
|
1,000 |
|
|
|
2.375% |
|
|
|
2.465% |
|
|
August 8, 2023 |
|
|
1,500 |
|
|
|
1,500 |
|
|
|
2.000% |
|
|
|
2.101% |
|
|
December 15, 2023 |
|
|
1,500 |
|
|
|
1,500 |
|
|
|
3.625% |
|
|
|
3.726% |
|
|
February 6, 2024 |
|
|
2,250 |
|
|
|
2,250 |
|
|
|
2.875% |
|
|
|
3.041% |
|
|
February 12, 2025 |
|
|
2,250 |
|
|
|
2,250 |
|
|
|
2.700% |
|
|
|
2.772% |
|
|
November 3, 2025 |
|
|
3,000 |
|
|
|
3,000 |
|
|
|
3.125% |
|
|
|
3.176% |
|
|
August 8, 2026 |
|
|
4,000 |
|
|
|
4,000 |
|
|
|
2.400% |
|
|
|
2.464% |
|
|
February 6, 2027 |
|
|
4,000 |
|
|
|
4,000 |
|
|
|
3.300% |
|
|
|
3.383% |
|
|
December 6, 2028 (a) |
|
|
1,993 |
|
|
|
2,044 |
|
|
|
3.125% |
|
|
|
3.218% |
|
|
May 2, 2033 (a) |
|
|
626 |
|
|
|
642 |
|
|
|
2.625% |
|
|
|
2.690% |
|
|
February 12, 2035 |
|
|
1,500 |
|
|
|
1,500 |
|
|
|
3.500% |
|
|
|
3.604% |
|
|
November 3, 2035 |
|
|
1,000 |
|
|
|
1,000 |
|
|
|
4.200% |
|
|
|
4.260% |
|
|
August 8, 2036 |
|
|
2,250 |
|
|
|
2,250 |
|
|
|
3.450% |
|
|
|
3.510% |
|
|
February 6, 2037 |
|
|
2,500 |
|
|
|
2,500 |
|
|
|
4.100% |
|
|
|
4.152% |
|
|
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 |
|
|
500 |
|
|
|
500 |
|
|
|
4.875% |
|
|
|
4.918% |
|
|
February 12, 2045 |
|
|
1,750 |
|
|
|
1,750 |
|
|
|
3.750% |
|
|
|
3.800% |
|
|
November 3, 2045 |
|
|
3,000 |
|
|
|
3,000 |
|
|
|
4.450% |
|
|
|
4.492% |
|
|
August 8, 2046 |
|
|
4,500 |
|
|
|
4,500 |
|
|
|
3.700% |
|
|
|
3.743% |
|
|
February 6, 2047 |
|
|
3,000 |
|
|
|
3,000 |
|
|
|
4.250% |
|
|
|
4.287% |
|
|
February 12, 2055 |
|
|
2,250 |
|
|
|
2,250 |
|
|
|
4.000% |
|
|
|
4.063% |
|
|
November 3, 2055 |
|
|
1,000 |
|
|
|
1,000 |
|
|
|
4.750% |
|
|
|
4.782% |
|
|
August 8, 2056 |
|
|
2,250 |
|
|
|
2,250 |
|
|
|
3.950% |
|
|
|
4.033% |
|
|
February 6, 2057 |
|
|
2,000 |
|
|
|
2,000 |
|
|
|
4.500% |
|
|
|
4.528% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
72,781 |
|
|
$ |
76,898 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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. Cash paid for interest on our debt for fiscal years 2019, 2018, and 2017 was $2.4 billion, $2.4 billion, and $1.6 billion, respectively. As of June 30, 2019 and 2018, the aggregate debt issuance costs and unamortized discount associated with our long-term debt, including the current portion, were $603 million and $658 million, respectively.
Maturities of our long-term debt for each of the next five years and thereafter are as follows:
|
(In millions) |
|
|
|
|
|
|
|
|||
|
|
|
|
||
|
Year Ending June 30, |
|
|
|
|
|
|
|
|||
|
2020 |
|
$ |
5,518 |
|
|
2021 |
|
|
3,750 |
|
|
2022 |
|
|
7,994 |
|
|
2023 |
|
|
2,750 |
|
|
2024 |
|
|
5,250 |
|
|
Thereafter |
|
|
47,519 |
|
|
|
|
|||
|
|
|
|||
|
Total |
|
$ |
72,781 |
|
|
|
|
|
|
|
