Long-Term Debt Maturities

Entity Registrant Name MICROSOFT CORPORATION
CIK 0000789019
Accession number 0001193125-14-289961
Link to XBRL instance http://www.sec.gov/Archives/edgar/data/789019/000119312514289961/msft-20140630.xml
Fiscal year end --06-30
Fiscal year focus 2014
Fiscal period focus FY
Current balance sheet date 2014-06-30
Current year-to-date income statement start date 2013-07-01

Commentary Did not manually investigate. Relation between current, noncurrent, and total debt is obviously incorrect.

Level 1 (Note level) Text Block concept us-gaap:DebtDisclosureTextBlock

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 Value

June 30,

2014

   

Face Value

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.

The notes in this table 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 2014, 2013, and 2012 was $509 million, $371 million, and $344 million, respectively. As of June 30, 2014 and 2013, the aggregate unamortized discount for our long-term debt, including the current portion, was $100 million and $65 million, respectively.

 

Debt Service

Maturities of our long-term debt for each of the next five years and thereafter are as follows:

 

(In millions)       


Year Ending June 30,

        

2015

   $ 0   

2016

     2,500   

2017

     0   

2018

     1,050   

2019

     2,250   

Thereafter

     14,945   


Total

   $   20,745   
    


Level 4 (Note level) Text Block concept - Maturities of Long Term Debt us-gaap:ScheduleOfMaturitiesOfLongTermDebtTableTextBlock

Maturities of our long-term debt for each of the next five years and thereafter are as follows:

 

(In millions)       


Year Ending June 30,

        

2015

   $ 0   

2016

     2,500   

2017

     0   

2018

     1,050   

2019

     2,250   

Thereafter

     14,945   


Total

   $   20,745   
    


Level 4 (Note level) Text Block concept - Debt Instruments us-gaap:ScheduleOfDebtInstrumentsTextBlock

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 Value

June 30,

2014

   

Face Value

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.


Level 4 Details Key Concepts: Long-term Debt Maturities

Description Fact value US GAAP XBRL Concept
Year 1 (Current portion) 0 us-gaap:LongTermDebtMaturitiesRepaymentsOfPrincipalInNextTwelveMonths
Year 2 2,500,000,000 us-gaap:LongTermDebtMaturitiesRepaymentsOfPrincipalInYearTwo
Year 3 0 us-gaap:LongTermDebtMaturitiesRepaymentsOfPrincipalInYearThree
Year 4 1,050,000,000 us-gaap:LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFour
Year 5 2,250,000,000 us-gaap:LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFive
Thereafter 14,945,000,000 us-gaap:LongTermDebtMaturitiesRepaymentsOfPrincipalAfterYearFive
Total Long-term Debt 20,600,000,000 us-gaap:LongTermDebt
CHECK -145,000,000

*


(Classified balance sheet) Deferred tax assets (liabilities), net components current/noncurrent asset/liability

Description Fact value US GAAP XBRL Concept
Current portion 0 us-gaap:LongTermDebtCurrent
Noncurrent portion 20,645,000,000 us-gaap:LongTermDebtNoncurrent
Total Long-Term Debt 20,600,000,000 us-gaap:LongTermDebt
CHECK -45,000,000

*


*

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