Notes to Financial Statements
NOTE 10 — DEBT
The components of debt were as follows:
|
(In millions, issuance by calendar year) |
|
Maturities (calendar year) |
|
Stated Interest Rate |
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|
Effective Interest Rate |
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|
September 30, 2020 |
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June 30, 2020 |
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2009 issuance of $3.8 billion (a) |
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|
2039 |
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5.20% |
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5.24% |
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|
$ |
559 |
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$ |
559 |
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2010 issuance of $4.8 billion (a) |
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2020 |
– |
2040 |
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|
3.00% |
– |
4.50% |
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|
3.14% |
– |
4.57% |
|
|
|
1,571 |
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|
|
1,571 |
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|
2011 issuance of $2.3 billion (a) |
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2021 |
– |
2041 |
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4.00% |
– |
5.30% |
|
|
4.08% |
– |
5.36% |
|
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|
1,270 |
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|
1,270 |
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2012 issuance of $2.3 billion |
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2022 |
– |
2042 |
|
|
2.13% |
– |
3.50% |
|
|
2.24% |
– |
3.57% |
|
|
|
1,650 |
|
|
|
1,650 |
|
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|
2013 issuance of $5.2 billion (a) |
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|
2023 |
– |
2043 |
|
|
2.38% |
– |
4.88% |
|
|
2.47% |
– |
4.92% |
|
|
|
2,919 |
|
|
|
2,919 |
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|
2013 issuance of €4.1 billion |
|
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2021 |
– |
2033 |
|
|
2.13% |
– |
3.13% |
|
|
2.23% |
– |
3.22% |
|
|
|
4,748 |
|
|
|
4,549 |
|
|
|
2015 issuance of $23.8 billion (a) |
|
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2020 |
– |
2055 |
|
|
2.00% |
– |
4.75% |
|
|
2.09% |
– |
4.78% |
|
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|
15,549 |
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|
15,549 |
|
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2016 issuance of $19.8 billion (a) |
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|
2021 |
– |
2056 |
|
|
1.55% |
– |
3.95% |
|
|
1.64% |
– |
4.03% |
|
|
|
16,955 |
|
|
|
16,955 |
|
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|
2017 issuance of $17.0 billion (a) |
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|
2022 |
– |
2057 |
|
|
2.40% |
– |
4.50% |
|
|
2.52% |
– |
4.53% |
|
|
|
12,385 |
|
|
|
12,385 |
|
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2020 issuance of $10.0 billion (a) |
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|
2050 |
– |
2060 |
|
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2.53% |
– |
2.68% |
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|
2.53% |
– |
2.68% |
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|
10,000 |
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|
10,000 |
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Total face value |
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|
67,606 |
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|
67,407 |
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Unamortized discount and issuance costs |
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(542 |
) |
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(554 |
) |
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Hedge fair value adjustments (b) |
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|
89 |
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|
93 |
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Premium on debt exchange (a) |
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(3,601 |
) |
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(3,619 |
) |
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Total debt |
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|
63,552 |
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|
63,327 |
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Current portion of long-term debt |
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(6,497 |
) |
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(3,749 |
) |
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Long-term debt |
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|
$ |
57,055 |
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|
$ |
59,578 |
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(a) |
In June 2020, we exchanged a portion of our existing debt at premium for cash and new debt with longer maturities. The premium will be amortized over the term of the new debt. |
|
(b) |
Refer to Note 5 – Derivatives for further information on the interest rate swaps related to fixed-rate debt. |
As of September 30, 2020 and June 30, 2020, the estimated fair value of long-term debt, including the current portion, was $77.7 billion and $77.1 billion, respectively. The estimated fair values are based on Level 2 inputs.
Debt in the table above is comprised of senior unsecured obligations and ranks equally with our other outstanding obligations. Interest is paid semi-annually, except for the Euro-denominated debt, which is paid annually.
The following table outlines maturities of our long-term debt, including the current portion, as of September 30, 2020:
|
(In millions) |
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Year Ending June 30, |
|
|
|
|
|
|
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|
2021 (excluding the three months ended September 30, 2020) |
|
$ |
3,750 |
|
|
2022 |
|
|
8,052 |
|
|
2023 |
|
|
2,750 |
|
|
2024 |
|
|
5,250 |
|
|
2025 |
|
|
2,250 |
|
|
Thereafter |
|
|
45,554 |
|
|
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Total |
|
$ |
67,606 |
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