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DEBT
 9 Months Ended
Mar. 31, 2017
DEBT

NOTE 11 — DEBT

Short-term Debt

As of March 31, 2017, we had $7.2 billion of commercial paper issued and outstanding, with a weighted average interest rate of 0.86% and maturities ranging from 15 days to 266 days. As of June 30, 2016, we had $12.9 billion of commercial paper issued and outstanding, with a weighted average interest rate of 0.43% and maturities ranging from 1 day to 99 days. The estimated fair value of this commercial paper approximates its carrying value.

We currently have two $5.0 billion credit facilities that expire on October 31, 2017 and November 14, 2018, respectively. These credit facilities serve as a back-up for our commercial paper program. As of March 31, 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 March 31, 2017, the total carrying value and estimated fair value of our long-term debt, including the current portion, were $76.8 billion and $78.1 billion, respectively. As of June 30, 2016, the total carrying value and estimated fair value of our long-term debt were $40.6 billion and $44.0 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:

 

Due Date

 

 

 

 

Face Value

March 31,

2017

 

 

Face Value

June 30,

2016

 

 

Stated

Interest

Rate

 

 

Effective

Interest

Rate

 

 

 

 

 

 

 

 

 

 

(In millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

November 15, 2017

 

 

 

 

 

$

600

 

 

$

600

 

 

 

0.875%

 

 

 

1.084%

 

May 1, 2018

 

 

 

 

 

 

450

 

 

 

450

 

 

 

1.000%

 

 

 

1.106%

 

November 3, 2018

 

 

 

 

 

 

1,750

 

 

 

1,750

 

 

 

1.300%

 

 

 

1.396%

 

December 6, 2018

 

 

 

 

 

 

1,250

 

 

 

1,250

 

 

 

1.625%

 

 

 

1.824%

 

June 1, 2019

 

 

 

 

 

 

1,000

 

 

 

1,000

 

 

 

4.200%

 

 

 

4.379%

 

August 8, 2019 (a)

 

 

 

 

 

 

 

2,500

 

 

 

*

 

 

 

1.100%

 

 

 

1.203%

 

November 1, 2019 (b)

 

 

 

 

 

 

 

18

 

 

 

*

 

 

 

0.500%

 

 

 

0.500%

 

February 6, 2020 (c)

 

 

 

 

 

 

 

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 (a)

 

 

 

 

 

 

 

2,750

 

 

 

*

 

 

 

1.550%

 

 

 

1.642%

 

December 6, 2021 (d)

 

 

 

 

 

 

 

1,872

 

 

 

1,944

 

 

 

2.125%

 

 

 

2.233%

 

February 6, 2022 (c)

 

 

 

 

 

 

 

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 (a)

 

 

 

 

 

 

 

1,500

 

 

 

*

 

 

 

2.000%

 

 

 

2.101%

 

December 15, 2023

 

 

 

 

 

 

1,500

 

 

 

1,500

 

 

 

3.625%

 

 

 

3.726%

 

February 6, 2024 (c)

 

 

 

 

 

 

 

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 (a)

 

 

 

 

 

 

 

4,000

 

 

 

*

 

 

 

2.400%

 

 

 

 2.464%

 

February 6, 2027 (c)

 

 

 

 

 

 

 

4,000

 

 

 

*

 

 

 

3.300%

 

 

 

3.383%

 

December 6, 2028 (d)

 

 

 

 

 

 

 

1,872

 

 

 

1,944

 

 

 

3.125%

 

 

 

3.218%

 

May 2, 2033 (d)

 

 

 

 

 

 

 

588

 

 

 

611

 

 

 

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 (a)

 

 

 

 

 

 

 

2,250

 

 

 

*

 

 

 

3.450%

 

 

 

 3.510%

 

February 6, 2037 (c)

 

 

 

 

 

 

 

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 (a)

 

 

 

 

 

 

 

4,500

 

 

 

*

 

 

 

3.700%

 

 

 

3.743%

 

February 6, 2047 (c)

 

 

 

 

 

 

 

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 (a)

 

 

 

 

 

 

 

2,250

 

 

 

*

 

 

 

3.950%

 

 

 

 4.033%

 

February 6, 2057 (c)

 

 

 

 

 

 

 

2,000

 

 

 

*

 

 

 

4.500%

 

 

 

4.528%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

$

  77,550

 

 

$

40,949

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a)

In August 2016, we issued $19.8 billion of debt securities.

(b)

Remaining notes that were acquired as part of the LinkedIn acquisition. See Note 8 – Business Combinations for further information.

(c)

In February 2017, we issued $17.0 billion of debt securities.

(d)

Euro-denominated debt securities.

*

Not applicable.

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. Effective July 1, 2016, we retrospectively adopted accounting guidance that requires debt issuance costs to be recorded as a deduction from the carrying amount of the debt liability, consistent with debt discounts. As of March 31, 2017 and June 30, 2016, the combined aggregate unamortized discount and debt issuance costs associated with our long-term debt, including the current portion, were $729 million and $392 million, respectively.